The Federal Board of Revenue (FBR) has introduced new procedures for the computerised scrutiny and cross-matching of sales tax returns and related data submitted by registered taxpayers.
Through SRO 1655 of 2026, the FBR has added Chapter XII-A to the Sales Tax Rules, 2006, establishing a mechanism for the electronic analysis of tax returns and other available information.
Under the new system, discrepancies involving factual or legal matters will be identified electronically. Taxpayers will receive advance notifications through the Inland Revenue Information System (Iris), giving them an opportunity to explain or correct any errors before legal or penal proceedings are initiated.
The rules require taxpayers to be provided at least seven days to respond to such notices. Reminders will also be issued if no response is received within the specified period.
The FBR will maintain records of all notifications, taxpayer responses and subsequent actions through a dedicated dashboard. The mechanism is intended to improve transparency, monitoring and traceability in the sales tax scrutiny process.
