Islamabad: The Federal Board of Revenue (FBR) has introduced a Compliance Risk Management (CRM)-based system for selecting cases for income tax assessments, effective September 1, 2026.
Under Income Tax Circular No. 1 of 2026, Inland Revenue officers will no longer be able to initiate new assessment or amendment proceedings unless a case has been selected and assigned through the FBR’s CRM system. The move is aimed at making the selection of tax cases more transparent, consistent and objective, while supporting the digitisation of tax administration.
Assessment proceedings already underway as of August 31 may continue under the existing procedure. However, any fresh reassessment, amendment or show-cause notice issued from September 1 onward will have to follow the CRM-based selection process.
The FBR has also directed its field formations to ensure compliance and instructed its Compliance Risk Management Directorate to maintain the system and provide technical support. Any exemption from the CRM process will require written approval from the Member Inland Revenue (Operations) or an authorised officer. The new directive supersedes previous instructions that are inconsistent with the mandatory use of the CRM system.
