The Federal Board of Revenue (FBR) has stepped up the use of artificial intelligence (AI), third-party data and a faceless assessment system to identify tax discrepancies and curb income underreporting. FBR Chairman Shafqat Mahmood Langrial has warned taxpayers and tax consultants that traditional methods of exploiting gaps in the tax system are becoming increasingly ineffective as the regulator strengthens its ability to analyze tax returns. Langrial said tax consultants previously considered both a taxpayer’s actual tax liability and the likelihood that the FBR would detect any misreporting when advising clients. The FBR is also strengthening its faceless tax assessment system to reduce opportunities for personal influence during the assessment process. The FBR’s expanded use of AI and third-party data marks a significant shift in Pakistan’s tax administration.