The Federal Board of Revenue (FBR) will use its new AI-powered Compliance Risk Management (CRM) system to prioritise corporate and non-salary tax returns for audit in the first phase, the revenue body has announced, while salaried filers will not be targeted initially.
What happened?
The FBR announced that its AI-based CRM system will initially focus audit selection on corporate returns and non-salary income returns. The system has governed case selection since September 1, 2026, under Income Tax Circular No. 1 of 2026. The FBR clarified that the salaried class is not being targeted in this first phase and that the system will improve over time.
Key details
- Under the circular, Inland Revenue officers cannot start fresh or amended assessment proceedings unless the case has first been selected and formally assigned through the CRM system.
- Proceedings launched outside the CRM route can be treated as unauthorised and may be declared void.
- The system is intended to make case selection more transparent, consistent and objective, while supporting the wider digitisation of Pakistan’s tax administration.
- The Directorate-General (Compliance Risk Management) maintains the CRM system and provides training and technical support to field formations.
What it means for people in Pakistan
Salaried taxpayers should see no change in this first phase. Companies and non-salaried filers, on the other hand, can expect audit selection to be driven by the AI system’s risk flags rather than manual picks, as the FBR moves tax enforcement further toward automation.
