The Federal Board of Revenue (FBR) has served notices on several educational institutions for concealment of income and mis-declaration of assets in all the four provinces, Gilgit Baltistan sources said on Friday.FBR has asked them to submit three year record of income. Sources in Regional Tax Office (RTO) Multan told that notices are being served on owners of Private Schools in Multan, Dera Ghazi Khan, Muzaffargarh, Layyah, Rajanpur,Khanewal, Vehari, and Lodhran
Sources in the Regional Tax Office (RTO–III) Karachi said notices had been sent to several leading educational institutions having chain of schools.
The concealment had been detected through audit exercise of the past years, they added.
“The schools are declaring income of their main branch and concealing income from other branches,” an official at the RTO-III Karachi said.
The sources said several educational institutions have been served notices for tax evasion.
The regional tax office initiated audit and directed educational institutions to provide information of their financial affairs under Section 214C of the Income Tax Ordinance, 2001.
The audit exercise was initiated on the information that the schools were maintaining multiple accounts other than those officially declared for concealment of receipts and income.
The information also revealed the schools were undertaking several other commercial activities and income from such activities remained undeclared in their annual returns.
The sources said tax officials physically visited the educational institutions and impounded record of accounts maintained by the schools.
In a case of one school it was discovered that the institution declared income of only one campus instead of the income generated from three campuses.
The examination of records revealed the school concealed around Rs190 million for the tax years 2014 to 2017.
The school evaded this amount and maintained in different bank accounts, which were also not declared in its annual returns, the sources said.
The tax authorities would initiate legal proceedings and penal action against the institution.
The Supreme Court of Pakistan in a case of fee hike by private schools last year ordered the revenue board to examine tax affairs of schools.
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Education