In a significant strategic move to enhance tax compliance and strengthen its audit operations, the Federal Board of Revenue (FBR) has announced the deployment of approximately 520 third-party auditors across its various regional field formations. This initiative marks the beginning of a broader transformation plan designed to accelerate the tax scrutiny process across Pakistan.
According to a formal statement issued by the FBR, this initial allocation of third-party auditors constitutes the first phase of its ambitious FBR Transformation Plan. The newly recruited auditors will be strategically stationed in three key regions: 120 in the Northern areas, 135 in the Central region, and a substantial 265 in the Southern region.
These placements are specifically designed to significantly boost the FBR’s audit coverage and improve efficiency in identifying and addressing tax discrepancies nationwide.
Structured onboarding & training
To ensure a structured and consistent implementation of this new program, the FBR has issued detailed Standard Operating Procedures (SOPs) that will govern the onboarding and comprehensive training of these third-party auditors. These SOPs are specifically aimed at ensuring their professional readiness, facilitating a smooth integration into the existing field formations, and ultimately enhancing the overall quality and effectiveness of tax audits.
The FBR underscored that while Human Resources (HR) firms are responsible for vetting the initial quality and qualifications of the auditors, dedicated Evaluation Committees will be established in each region. These committees will play a crucial role in reviewing and finalizing the suitability of candidates. They are expected to work closely with the FBR headquarters and may conduct their evaluations either in-person or virtually, based on logistical feasibility and efficiency requirements.
Focal persons & mandatory training
Each Chief Commissioner Inland Revenue (IR) will be required to nominate a Focal Person at the BS-19 level or higher. This designated individual will serve as a crucial liaison, coordinating efforts between the HR firms, the respective regional field offices, and the FBR headquarters. These Focal Persons will bear the responsibility for overseeing the entire onboarding process for the auditors, ensuring that all necessary arrangements are in place, including adequate office space, essential IT equipment, and administrative support.
Moreover, all deployed auditors are mandated to undergo a comprehensive three-week online training program, which will be organized and delivered by the IRS Academy. The Focal Persons will also be tasked with facilitating this critical training by coordinating schedules, securing suitable venues, and managing attendance logistics to ensure all auditors complete the required curriculum.
As part of the streamlined onboarding process, the HR firms will submit the final lists of selected auditors to the FBR headquarters. These lists will then be promptly relayed to the respective Evaluation Committees for their final review and approval. Immediate notification of the Focal Persons will follow the official release of the SOPs to expedite the deployment of these new audit resources.
This initiative reflects the FBR’s growing reliance on leveraging third-party expertise to bolster its institutional capacity and enforce tax compliance more rigorously across various sectors of the economy. It signals a move towards a more robust and expansive tax audit framework in Pakistan.
