The Federal Board of Revenue (FBR) is likely to scan the records of selected non-profit organisations (NPOs) for audit to check any misuse of funds. Sources told Business Recorder on Wednesday that the board would also select NPOs for audit under the on-going exercise.
Primarily, trusts records would be examined to unearth cases where assets of these charitable organisations were transferred into family property. It is important to mention that every non-profit organisation, including those established for religious, educational, charitable, welfare or development purposes and for the promotion of amateur sports, are liable to file income tax returns.
It is mandatory for the non-profit organisations, formed and registered under any law, to file tax return. Similarly, the NPOs, approved by the commissioner of income tax, have to file returns.
Sources said that withholding statements of car manufacturers and import data would also be examined to identify cases of multiple purchases and investment into this sector. Other cases, which might come within the purview of audit, included cases where profit and loss (P & L) expenses are claimed more than 90 percent of gross profit excluding depreciation. Cases where refunds have been adjusted against future liabilities would also be examined under the new strategy, sources said.
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