A. Authentication: Further to KQU 4057 of 27.8.26, being an important matter, we would inform you about the document mentioned below is not available on relevant websites, as our team checks all relevant websites twice a day. However, we found the document from reliable resources; hence, the QC is being sent now.

B. Updated Commentary: FBR issued Notification dated 24.8.26 about Constitution of the Internal Affairs & Integrity Oversight (IAIO) Committee and Establishment of the Public Complaint Portal (Attachment 3711.1) in ensuing paragraph, with emphasis ours in bold & Underline for quick reading.

1.   Composition. The Committee shall be composed as follows:

Chair: Member (Admin/HR)

Member: Member (IRO)

Member: Member (Operations), Customs

Co-opted Member: DGI & Investigation (Inland Revenue)

Co-opted Member: DG, I&I (Customs)

Chief (IMC) shall hold the Secretariat of the Committee.

2. Functions of Members.

a. The Chair shall convene the Committee, direct the integrity-review agenda, and present findings to the BIC.

b. The Member (Operations), IRS and the Member (Operations), Customs shall provide

the operational context necessary to distinguish systemic process failures from

individual misconduct and to ensure corrective recommendations are operationally grounded.

c. The Director General (I&I), IRS and the DG (I&I), Customs, as co-opted members, shall bring all pending and concluded investigation files, intelligence on integrity vulnerabilities, and data on enforcement referrals.

d. The Secretariat, under the Chief (IMC), shall maintain the centralised complaints register, the integrity risk register, and all implementation tracking. Further Chief (Management/HR-IR), Chief (Management/HR-Customs) and Chief (Legal-HR) shall assist the committees as and when required.

3. Terms of Reference. The Committee shall provide headquarters-level oversight of FBR ’s integrity architecture, directly implementing GCD Recommendations 5, 6 and 7, as follows:

(a)  Centralised Complaints Register: Consolidate all complaints from the IMC, RICs, I&I (IRS/Customs), FTO, FIA, NAB and the Citizens Portal into a single register; and report complaint volumes, dispositions and outstanding cases to the Chairman on a periodic basis.

(b)  Integrity Risk Register: Identify and document corruption vulnerabilities across high risk functions — including customs clearance, GST refund processing, audit case selection and procurement — and maintain and update a formal integrity risk register.

(c)   FTO Findings & Appellate Outcomes: Review FTO compliance rates, contested orders and appellate reversal patterns to identify systemic procedural failures and integrity concerns at formation level.

(d)  Corrective Measures & Referrals: Recommend updates to the code of conduct, integrity training programmes and rotation policies; coordinate with FIA and NAB on criminal referrals; and maintain an implementation tracker for all Committee recommendations.

4. Public Complaint Portal. A public complaint portal shall be established on the IRS website, providing a transparent, digitised channel through which taxpayers, businesses and the public may lodge complaints against FBR officials, with complaints feeding directly into the IAIO centralized register. The portal shall operate as follows:

(a)  Registration: Complainant registers on the portal; basic identity verification is completed to prevent frivolous mass filings while preserving anonymity vis-a-vis the official under complaint.

(b)  Anonymised Case Number: The system assigns a unique, anonymised reference number used in all future correspondence. The complainant’s identity is never disclosed to the subject of the complaint.

(c)   Complaint Submission: The complaint is entered via a structured form capturing its nature, the official involved, the relevant formation and supporting evidence, and is routed directly into the IAIO centralized register.

(d)  Processing & Classification: The IAIO Secretariat reviews and classifies each complaint as: frivolous insufficient basis (closed with reasons); requiring further investigation (probe initiated); or warranting direct disciplinary action (referred immediately).

(e)   Public Reporting & Updates: The portal displays aggregate complaint tables — volumes, stages and outcomes — for public transparency, and the complainant receives automated email updates at each stage until final status.

5. Reporting and Accountability. The Committee shall conduct quarterly reviews and produce a formal Quarterly Report for submission to the BIC, with the Chair presenting findings in person. Each Quarterly Report shall contain:

– Consolidated complaints register — total volumes received, classified and disposed of, disaggregated by complaint type, formation and channel of origin;

– Disciplinary outcomes by grade, violation type and formation;

– Criminal prosecution referrals proposed and concluded, with outcomes where available;

– FTO compliance status, contested orders and appellate reversal analysis; and

– Integrity risk register update, with new vulnerabilities identified and corrective measures recommended.

FBR shall share summaries of IAIO quarterly reports with the MIF as part of its regular governance reporting, and publication of complaint and disciplinary data, as required by GCD Recommendation 6, shall be coordinated through the IAIO Secretariat.

6. This issues with the approval of the Competent Authority.

C. Further Details & Services

Should you require any clarification or explanations in respect of the above or otherwise, or require Income Tax, Federal & Provincial Sales Tax or Withholding Tax Statement, Advisory, Return Filing or Review services, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com, asif.s.kasbati@professional-excellence.com.

Best regards for Here & Hereafter
Asif S Kasbati (FCA, FCMA & LLB)

Managing Partner 

Kasbati & Co (1400+ Tax, Levies, Companies, Economy, Inflation, HR, Banking, Finance, etc

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