FINANCIAL JOURNAL

1.1) Most of the notices served by the tax authorities are often recurring in nature and have various similarities among the issues raised . 1.2) The taxpayers getting used to these sort of procedures is almost always willing to submit reply without ascertaining the proper jurisdiction of the notices served by the tax officer. 1.3) Most of the time these notices are without jurisdiction, illegal and unwarranted in law. It is, therefore, very important for taxpayers or consultants to see if the notice being served have proper jurisdiction or not. 1.4) The most common sort of jurisdiction issues relate to the tax offices, circles and zones. Most oftenly the notices served are outside the jurisdiction and relates to irrelevant Zone or instead of Regional Tax Office the notice might be sent by Large Taxpayers Unit or Vice versa.  Exception: information under section 176 of the Income Tax Ordinance, 2001 may be requested by any zone or tax office and issue of jurisd...

1. INTRODUCTION 1.1) Major changes are expected in near future with regards to taxation in GCC as per the instructions and advise of IMF.  1.2) The recent introduction of unified VAT in GCC countries is being seen as a major change in the expected economic growth and revenue generation. Although certain indirect taxes were already enforced in Bahrain and Oman focusing majorly on tourism, hoteling, and gasoline businesses e.t.c. however, recent implementation of VAT accross the GCC member countries may further widen the scope of the said law.  1.3) In this article we will go through an overview of tax statutes currently being followed by GCC member countries.  1.4) GULF COOPERATION COUNCIL (GCC) 1.5) Gulf Cooperation Council (GCC) basically is a geo political and economic alliance between the arab countries in the Persian Gulf excluding Iraq. 1.6) GCC consists of following member countries: Saudi Arabia;  UAE;  B...

1. S ummary 1.1) T he government of Pakistan via Finance Act 2016 formally introduced documentation and implementation of transfer pricing concept in Income Tax Rules, 2002. However, the implementation of Country-by-Country Reporting (CbCR or CbC reporting) was yet to be finalized. 1.2)  In this regard Federal Board of Revenue issued a 'draft' notification No. S.R.O 421(I)/2017, dated the 5th June, 2017 detailing the procedure for CbCR and transfer pricing documentation for Multinational Enterprises (MNE's) with regard to transactions between associates. 1.3)  The qualifying Companies and establishments were supposed to comply with the transfer pricing documentation requirements from 1 July 2016. However, as regards to CbCR requirements the same are to be implemented for financial years ending on or after 1 July 2017. 2. Organisation for Economic Co-operation and Development (OECD): 2.1)  Although the concept of transfer pricing has always be...

1.1)  The United Arab Emirates (UAE) has recently issued Fedral Decree Law No. 7 of 2017 on implication of Excise Taxes in the state.  1.2)  The Cabinet empowered thereon has therefore issued Cabinet Decisions No. (37) and (38) of 2017 detailing description of Excise Goods, Excise Tax Rates and the Method of Calculating the Excise Price. 1.3)  These procedures confirm the information previously announced that excise tax will be applicable to carbonated drinks at a rate of 50%, and energy drinks and tobacco products at a rate of 100%. It also provides details of how to calculate the value on which excise tax should be calculated, and indicates that the Federal Tax Authority (FTA) is empowered to publish a standard price list specifying the value on which excise tax should be calculated for excise goods. 1.4)  The law has come into effect from 1st October 2017 on the basis of the audited accounts of record on 30th September 2017 for individuals ...

1.1) O ne of the major concepts in the study of taxation is of exempted goods and zero rated goods.  1.2)  Taxpayers often come across these terminologies and in most of the cases due to lack of understanding of tax laws they are only willing to be considered as individuals covered under the exempted regime. However, that might not be advisable in every case. 1.3)  We will try to elaborate these concepts in detail and try to conclude which of the both concept is more favorable.  1.4)  Exempted goods are those which are outside the ambit of the taxation and the incidence of tax is not applicable on those goods. These are completely exempted from taxation and no tax either in advance, at source or at the time of filing of return should be collectible on such exempted goods.  1.5)  Whereas, in case of zero rated goods the tax is applicable. However, the rate of such tax would be 0% . 1.6)  This means that the tax shall ...

1. Introduction: 1.1)  Provisions of withholding taxes are probably one of the most efficient methods of tax collection at source or in advance as the case may be implemented by the tax authorities. 1.2)  There are three following major benefits of implementation of withholding taxes: Taxes are deposited in government treasury at the time of transaction (Div III Part V Chapter X) Taxes are deposited in government treasury advance (Div I & II Part V Chapter X, Chapter XII) The responsibility of tax collection is transferred to the withholding agents instead of tax department 1.3)  There are effectively following types of withholding taxes:  Sales tax withholding procedures (please refer to my previous post  https://zeeshanqureshi.blogspot.com/2017/11/overview-of-sales-tax-withholding.html )          Income Tax withholding from salary under section 149 of the Income Tax Ordinance, 2001...