NBR selects 72,341 tax returns for automated audit

The National Board of Revenue (NBR) has selected 72,341 income tax returns for the 2023–24 tax year for automated audit as part of efforts to enhance transparency, accountability, and efficiency in revenue collection.

According to a press release of the NBR, the selection represents the second phase of its audit process for the 2023–24 tax year. 

Earlier, 15,494 returns were chosen through a random selection method under a framework implemented in July 2025. 

The latest phase reflects a shift toward a more advanced and data-driven approach.

Under the new system, returns have been selected using a risk-based audit criterion, which identifies taxpayers based on specific financial risk indicators. 

The automated system ensures a systematic distribution, selecting between 20 and 200 taxpayers from each tax circle while eliminating human intervention in the process.

Officials said the fully automated mechanism removes discretionary authority, thereby ensuring neutrality and minimising the possibility of bias or undue influence in audit selection. The initiative is seen as a major step toward modernising tax administration in line with international best practices.

The move also responds to long-standing demands from taxpayers and civil society for a fair and predictable audit system.

By reducing manual involvement, the NBR aims to prevent harassment and build confidence among taxpayers.

As part of its transparency measures, the revenue board has published the list of selected Taxpayer Identification Numbers (TINs) on its official website, allowing individuals to verify their audit status.

The NBR expressed hope that the automated audit system will strengthen voluntary tax compliance and contribute significantly to achieving the country's revenue targets while ensuring a transparent and accountable fiscal environment.