FBR Introduces Electronic Scrutiny of Sales Tax Returns
- The new system will automatically check returns against available data and flag errors or discrepancies.
- Registered persons will receive notices through the IRIS portal and have at least seven days to respond.
- Inland Revenue officers will review responses before deciding whether action is needed under sales tax law.
The Federal Board of Revenue (FBR) has amended the Sales Tax Rules, 2006, to introduce electronic scrutiny of sales tax returns. Its computerised system will analyse returns, cross-check them against available data and identify possible legal errors or discrepancies.
Registered persons will be notified of issues through the IRIS portal, giving them an opportunity to explain or correct them before further action is considered. A system-generated advance notice issued by the relevant Inland Revenue officer must allow at least seven days for a response.
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If no response is submitted by the deadline, the system will issue a reminder and give the registered person at least seven more days to reply.
The system will retain records of the issues it identifies, the notices it sends and the responses it receives. Those records will be available to the Inland Revenue officer with jurisdiction, while a system-generated dashboard will track notices, replies and subsequent action.
According to the FBR, the automated checks and electronic communication will be implemented through a Change Request Form to support the system’s operation. The relevant Inland Revenue officer will examine each response and, where necessary, act under the Sales Tax Act and its rules.
