In a recent judgement, the Tax Appeal Tribunal (TAT) has ruled in favour of a private educational institution that it is not liable to income tax on its profit. FIRS had demanded tax from the institution on the basis that it is private and charges exhorbitant fees which makes it to be outside the reach of the general public.
The TAT however ruled that the institution is open and available to any member of the public and therefore qualifies for the exemption provided in the tax laws. It further states that this status is not affected by the level of fees charged.
This has been a contentious issue for a long time and it is unlikely that this ruling will settle the case permanently as a number of salient points regarding the subject are yet to be addressed.