Islamabad, Dec. 20 (TNS): The Federal Board of Revenue (FBR) has kicked off action against Non-Profit Organisations (NPOs) and Non-government Organisations (NGOs) operating in the country and are involved in tax evasion.
According to statement issued by the watchdog, FBR I&I issued letters to all field formations in this regard.
According to FBR record, 2251 NGOs and NPOs are registered in Pakistan.
Jalal Khattak, director of I&I, has sent letters to commissioners of all provinces.
Intelligence and Investigation institutions have directed FBR to monitor income tax rolls.
In letters, commissioners are advised not to waive off tax for those NGOs and NPOs which are not following tax rolls.
All field formations have been asked to review tax rolls case-to-case and take action against those organizations which do not follow the tax rolls.
I&I has sent letters to Commissioners of Islamabad, Lahore, Karachi, Hyderabad, Multan, Faisalabad and Peshawar.
FBR decoded to take these measures to monitor NGOs and NPOs after reports that many organizations are involved in tax evasion in the name of welfare organizations.
The FBR intend to conduct different studies with the support of a donor agency. The study on Fiscal Regulatory Regime of NPOs would also be made part of the overall studies to be sponsored by international donor agency. The income tax exemptions available to the non-profit organisations, trusts and welfare institutions, etc, was withdrawn and replaced with 100 percent tax credit under the Finance Act, 2014.
Previously specified income of certain non-profit organisations, trusts, welfare institutions, etc, was exempt from tax under clause (58), (58A), (59) and (60) of Part-I of 2nd Schedule subject to conditions and restrictions specified therein as per following details:
Firstly, a trust administered under a scheme approved by the Federal Government in this behalf and established in Pakistan exclusively for the purposes of carrying out such activities as are for the benefit and welfare of ex-servicemen and serving personnel, including civilian employees of the Armed Forces, and their dependants; or ex-employees and serving personnel of the federal government or a provincial government and their dependants, where the said trust is administered by a committee nominated by the federal government or, as the case may be, a provincial government.
