The Federal Board of Revenue (FBR) has established a specialized department under the banner of the Directorate General (DG) of Compliance Risk Management to increase compliance and tax collection from potential sectors of the economy.
In this connection, the FBR issued S.R.O. 1796(1)2022 on Wednesday to lay down the functions, jurisdiction, and powers of the Directorate General of Compliance Risk Management and its officials.
Under the new directorate, the Director General (DG) of the directorate will have the powers of the Chief Commissioner and the directors of the new directorate would exercise the powers of the Commissioners Inland Revenue (IR).
The notification revealed that the directorate shall develop risk profiles on the main segments and sectors related to the four pillars of compliance (Registration, Filing, Reporting, and Payment) to be included in the risk register. This would be required at least quarterly and annually.
The directorate would be engaged in the creation and updating of the risk register and data collection (both internal and external sources) through an integrated system with the Information Technology Wing (ITW) of FBR to create an indigenous data bank.
It would conduct environmental scanning, research, and studies of approved compliance topics.
The directorate would also do the job of collecting risk evaluation reports from risk owners (field formations) based on taxpayer segments at all four compliance levels on a quarterly and annual basis and updating the risk portal.
It would collect third-party data, plan risk treatment or mitigating strategies, develop compliance improvement plan(s), assist field units in case selection exercises and periodic measurement of risk management performance against the key risk indicators, risk identification analysis, tax gap analysis through scientific and analytical tools, and operation of data analysis centers by utilizing services of data analysts and data scientists.
The directorate would be engaged in the development and implementation of Customer Relationship Management (CRM) policy, frameworks, and practical implementation. It would design, develop and maintain the structured CRM methodologies and procedures, for instance, the design of a risk policy and processes based on the CRM framework at FBR.
The directorate would have the mandate for the management of general administration finance, human resources, and budget.
The directorate would also have the authority of hiring sectoral or business experts for assistance in sectoral studies, analysis of business trends and identification of sectoral risks, and functions of the new directorate.