FBR knocks the door of pilgrimage enablers
FBR has started issuing notices to Hajj and Umra tour operators who have not been filing income tax returns.
ISLAMABAD:
The Federal Board of Revenue (FBR) has started issuing notices to Hajj and Umra tour operators who have not been filing income tax returns. A senior officer of the FBR told The Express Tribune that a report has highlighted that these tour operators are involved in tax evasion on a massive scale.
He said that the large tax payer units and regional tax offices are actively monitoring these operators and the accounts of these organisations will be audited very soon.
The official made it clear that the FBR has decided to take stern action against the violators who are costing the economy billions of rupees in forgone revenue annually.
The senior official said that there are more than 600 registered tour operators in the country. Of the total, only 40 regularly pay taxes.
According to the Income Tax Ordinance, all tour operators are required to make payments through cross cheques so that their accounts can be monitored.
However, it has been learnt that most operators use other methods to make payments. Sources said that since most of these payments have to be made abroad, either the tour operator or their representatives travel to Saudi Arabia to carry out transactions themselves rather than through legal channels.
It has also been learnt that other than physically making deposits in foreign countries, Hajj and Umra operators have also been using other prohibited means of transferring money including hawala and hundi.
Hajj and Umra tour operators are required to file returns since they are operate as private limited companies after the ministry of religious affairs made it mandatory for them to register as formal companies in 2006.
Published in The Express Tribune, August 7th, 2010.
The Federal Board of Revenue (FBR) has started issuing notices to Hajj and Umra tour operators who have not been filing income tax returns. A senior officer of the FBR told The Express Tribune that a report has highlighted that these tour operators are involved in tax evasion on a massive scale.
He said that the large tax payer units and regional tax offices are actively monitoring these operators and the accounts of these organisations will be audited very soon.
The official made it clear that the FBR has decided to take stern action against the violators who are costing the economy billions of rupees in forgone revenue annually.
The senior official said that there are more than 600 registered tour operators in the country. Of the total, only 40 regularly pay taxes.
According to the Income Tax Ordinance, all tour operators are required to make payments through cross cheques so that their accounts can be monitored.
However, it has been learnt that most operators use other methods to make payments. Sources said that since most of these payments have to be made abroad, either the tour operator or their representatives travel to Saudi Arabia to carry out transactions themselves rather than through legal channels.
It has also been learnt that other than physically making deposits in foreign countries, Hajj and Umra operators have also been using other prohibited means of transferring money including hawala and hundi.
Hajj and Umra tour operators are required to file returns since they are operate as private limited companies after the ministry of religious affairs made it mandatory for them to register as formal companies in 2006.
Published in The Express Tribune, August 7th, 2010.