The Federal Board of Revenue (FBR) has introduced an automated system to facilitate the adjustment of unregistered supplies through credit notes, marking a significant step toward improving tax compliance and transparency.
This initiative aims to prevent fraudulent practices associated with sales return adjustments while ensuring a more streamlined and efficient process. In an official communication to Chief Commissioners of Inland Revenue across Large Taxpayer Offices (LTOs), Medium Tax Offices (MTOs), Corporate Tax Offices (CTOs), and Regional Tax Offices (RTOs), the FBR outlined the implementation of this new mechanism. The system enables sales return adjustments against unregistered supplies, backed by robust verification measures.
Previously, the automated system restricted such adjustments due to misuse, where fraudulent entities manipulated credit notes to claim undue benefits. To prevent such practices, approvals were required from the respective Commissioner-IR, who would verify the legitimacy of transactions before forwarding cases to the FBR for final authorization.
With the introduction of the automated system within the IRIS module, Commissioners-IR can now directly scrutinize and approve taxpayer requests. This upgrade is expected to reduce administrative delays, ensuring that only genuine claims are processed efficiently.
The FBR has urged field formations to make full use of this system while adhering to legal provisions. By integrating technology into tax administration, this initiative aims to enhance compliance and minimize the risk of tax fraud in Pakistan. The FBR will continue monitoring the system’s implementation and make necessary improvements to further strengthen governance and efficiency in tax adjustments.
