NPOs and trusts: FBR asks chief commissioners to conduct performance appraisal

ISLAMABAD: The Federal Board of Revenue (FBR) has directed the Chief Commissioners (Inland Revenue) to conduct performance appraisal of the Non-Profit Organizations (NPOs) and trusts to timely complete their performance evaluation required under the income tax law.

In this connection, the FBR has issued instructions to all Chief Commissioners here on Tuesday.

According to the FBR’s instructions, as per clause (g) of sub-rule (2) of Rule 211, a detailed report with regard to the performance of the applicant taxpayers/NPOs for achieving their aims and objectives is required to be accompanied with the application under Rule 211 of the Income Tax Rules 2022.

The said detailed report must be duly evaluated and certified by an approved independent certification agency. As per first proviso to the said clause (g), till the approval of two such agencies, applicant/NPO/trust shall have an option to get the performance appraised by the Chief Commissioner of the concerned field formation or the independent certification agency. Till date, there is only one approved independent certification agency. Therefore, applicant trusts/NPOs/taxpayers have an option to get their performance appraised by the Chief Commissioners. Appraisal by Chief Commissioner is done by a committee constituted for this purpose on the behalf of the Chief Commissioner.

It has been observed by the Board that the field formations do not entertain the requests of the taxpayers for the performance appraisal and as such no such committee is constituted for the said purpose.

In this context, I am further directed to state that in cases, where independent certification agency has shown its inability to undertake performance appraisal for any reason whatsoever, or the taxpayer opts for performance evaluation by Chief Commissioner, a committee must be constituted for such case, which will undertake performance evaluation on the basis of same parameters and standards as are approved by the Board and adopted by the certification agency, the FBR maintained.

Copyright Business Recorder, 2022