Audit exposes UET Lahore's tax lapses

It has been revealed that over Rs169 million in income tax deducted from the salaries of employees at Lahore's University of Engineering and Technology (UET) were not deposited with the FBR.

This disclosure was made in a letter from the Punjab Director General Audit to the FBR chairman, as per documents obtained by The Express Tribune.

The director general also sent the letter to the Punjab chief secretary, the Deputy Auditor General (Central), and Punjab Higher Education Department secretary. Additionally, the Deputy Auditor General (Central) has compiled a report on the matter and forwarded it to the Auditor General of Pakistan.

According to the documents, the audit of the UET revealed that from the fiscal years 2019 to 2023, the university regularly deducted income tax at source from the salaries of its employees, amounting to Rs169,636,422. However, this amount was not deposited into the national treasury or with the FBR.

Instead, the UET retained the funds in its main account and used them for the university's operational expenses, which constitutes a serious negligence on the part of the university administration and a violation of the Income Tax Ordinance 2001.

The Punjab Director General Audit also prompted the Deputy Auditor General (Central) Lahore to issue a report and instruct the financial accounting officer (FAO) to recover the outstanding income tax dues.

The Deputy Auditor General (Central) Lahore's report stated that while the university administration issued cheques to the income tax authorities, these cheques were not presented according to the bank reconciliation statement.