Government of Pakistan s17

GOVERNMENT OF PAKISTAN

Revenue Division

Central Board of Revenue

***

Islamabad, the 10 December,2005

NOTIFICATION

(Income Tax)

S. R. O. 1223 (I)/2005.- The following draft of certain further amendments in the Income Tax Rules, 2002, proposed to be made in exercise of the powers conferred by sub-section (1) of section 237 of the Income Tax Ordinance, 2001 (XLIX of 2001), is hereby published, as required by sub-section (3) of the said section, for the information of all persons likely to be affected thereby, and notice is hereby given that the draft will be taken into consideration after fifteen days of its publication in the official Gazette.

(2) Any objection or suggestion, which may be received from any person in respect of the said draft, before the expiry of the aforesaid period, shall be considered by the Central Board of Revenue.

Draft Amendments

In the aforesaid Rules,

(1) in rule 212, in sub rule (2)-

(a) in clause(a), after the semi-colon at the end, the word “and” shall be added;

(b) in clause (b), the semi-colon and word “ ; and” shall be omitted; and

(2) for fule 214, the following shall be substituted, namely:-

“214. Renewal of the approval.- The approval granted under rule 212 will remain in force for the subsequent years unless withdrawn under rule 217. This will, however, be subject to the filing of the following documents by the organization along with annual return of income for the corresponding tax year, supported by-

(a) the statement of audited accounts as mentioned in clause (d) of sub-rule (2) of rule 211;

(b) a statement of income and donations received and moneys paid;

(d) a statement showing the money set apart or kept un-utilised with reasons thereof.”;

(3) rule 216 shall be omitted; and

(4) for rule 217, the following shall be substituted, namely:-

“217. Power to withdraw approval.- (1) The Commissioner may, at any time, withdraw approval granted under rule 212, if satisfied that-

(a) the constitution, memorandum and articles of association, trust deed, rules and regulations or bye-laws, as the case may be, specifying the aims and objects of the organization do(es) not provide for prohibiting the making of any changes in the constitution, memorandum and articles of association, trust deed, rules as specified in clause (h) of sub-rule (1) of rule 213,

(b) the organization-

(i) has been or is being used for personal gain of any particular person or a group of persons as specified in clause (a) of sub-rule (2) of rule 213;

(ii) has been propagating the view of a particular political party or a religious sect as specified in clause (b) of sub-rule (2) of rule 213;

(iii) has been or is being managed in a manner calculated to personally benefit its members or their families as specified in clause (c) of sub-rule (2) of rule 213; or

(iv) has not been or will not be able to achieve its declared aims and objects in view of its set up, administration or otherwise as evaluated and certified by an independent certification agency as specified in clause (d) of sub-rule (2) of rule 213;

(c) the organization fails to submit, the following documents along with their return of income for corresponding year, to the Commissioner, namely:-

(i) a copy of the statement of audited accounts, as mentioned in clause (d) of sub-rule (2) of rule 211, along with the return of income for the relevant tax year;

(ii) a statement of income and donations received and moneys paid;

(iii) a list of donees and beneficiaries with full addresses; and

(iv) a statement showing the money set apart or kept not utilised with reasons thereof;

(v) the said organization has failed to fully utilize its income and the donations received by it for achieving the purposes for which it was established; and

(vi) the reason for setting apart, or for not utilizing, the money referred to in clause (d) of rule 216 is not valid.

(2) No approval shall be withdrawn under sub-rule (1)

unless the organization have had an opportunity to show cause against the action proposed to be taken.

(3) Where the Commissioner decides to withdraw an approval under sub-rule (1), the Commissioner shall intimate the organization and certification agency, in writing, of the decision including a statement of reasons for the decision.”

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C.No. 2(4)/ITR/05

(Salman Nabi)

Member (Direct Taxes)/

Additional Secretary