Karachi, February 25, 2025 – The Federal Board of Revenue (FBR) has taken a significant step towards improving tax compliance by developing an automated system for handling adjustments of unregistered supplies through credit notes. This new system is aimed at ensuring transparency and minimizing fraudulent practices in tax adjustments. In an official communication addressed to Chief Commissioners of Inland Revenue across Large Taxpayer Offices (LTOs), Medium Tax Offices (MTOs), Corporate Tax Offices (CTOs), and Regional Tax Offices (RTOs), the FBR outlined the implementation of this automated mechanism. The initiative focuses on allowing adjustments of sales returns against unregistered supplies while maintaining stringent verification measures. Previously, the adjustment of sales returns via credit notes for unregistered supplies was restricted in the automated system due to its misuse by fraudulent entities, who manipulated fake credit notes to claim undue benefits. To prevent such malpractices, claimants were required to seek approval from the respective Commissioner-IR, who would then verify the legitimacy of transactions before forwarding the case to the FBR for…