Unrecognised educational institutions: FTO to file report to president on tax affairs

ISLAMABAD: The Federal Tax Ombudsman (FTO) will file a comprehensive report to President of Pakistan on a reference forwarded by the president to conduct an investigation against tax affairs of illegal educational institutions which were not recognised by the Higher Education Commission of Pakistan.

It is reliably learnt that on the basis of reference forwarded by the President of Pakistan on the initiative of a taxpayer citizen of Pakistan Waheed Shahzad Butt, Advocate, in terms of Section 31 of the Federal Tax Ombudsman Ordinance, 2000, office of the FTO had initiated investigation against Federal Board of Revenue (FBR) but no report has been submitted yet before the President of Pakistan.

Earlier the notice issued by the FTO states, “whereas the above mentioned reference has been referred by the President of Pakistan and whereas the FTO has ordered to conduct an investigation in the subject reference. Now therefore you are required to submit para-wise comments in annotated form to the issues contained in the reference”.

Illegal educational institutions: FTO orders probe into tax matters

The whistleblower taxpayer citizen Waheed Shahbaz Butt told this correspondence that it is the need of the hour to initiate proper lawful proceedings against the fake/ fraud educational institutions looting/robbing funds from general public in the name of noble profession of “education” but paying nothing to the public exchequer and openly involved in massive tax evasion.

Though the HEC maintains a structured regulatory mechanism yet tax matters of these private institutions/colleges have not been appropriately attended by the FBR.

Dozens of institutions have been included in the list of “Fake, Illegal, Unlawful and Unrecognized Institutions” by the HEC, ultimately promoting fraud, cheating and deception to hoodwink the process of justice in the noble profession/ field of education.

The FBR must initiate appropriate tax proceedings including action under Sections 161, 205, 182, 114, 176, 177, 214C of the Income Tax Ordinance, 2001 and action under Section 11, 25, 72B of the Sales Tax Act, 1990, against entities/institutions not approved by the HEC which was ultimately declared as fake/ fraud institution by the HEC, Waheed Butt added.

Copyright Business Recorder, 2025