‘Fake educational institutions’: FTO to submit detailed report to President

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

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

Earlier, notice issued by FTO states, “whereas the above mentioned reference has been referred by the President of Pakistan.

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

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.“

The whistleblower taxpayer citizen 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 are openly involved in massive tax evasion.

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

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

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

Copyright Business Recorder, 2025