Islamabad 27-03-2024: The proliferation of private educational institutions in Pakistan resulting in adverse effects on educational standards and public finances. The unchecked growth of these institutions is also resulting in the exploitation of the public through misleading accreditations, fake certifications, and the evasion of taxes. Despite the Higher Education Commission's (HEC) attempts to flag such institutions, they continue to operate with impunity, defrauding the public and evading taxation. The Federal Tax Ombudsman initiated proceedings to investigate the Mehran Institute of IT in Hyderabad and the requisition of information from the Revenue Division regarding the institution's tax status, premises ownership, and compliance with tax laws. The failure of the tax department to register the institute causing the adverse consequences including the inability to ascertain income or loss, compromise of withholding provisions, and the absence of the landlord on the tax roll. The FTO recommends that the Federal Board of Revenue (FBR) to directs the Commissioner of Inland Revenue in Hyderabad to register the institution on the tax net and report compliance within 90 days.

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