Category: Pakistan

Islamabad office: 17 Axact employees sent on seven-day physical remand

ISLAMABAD: A district and sessions court on Monday handed over 17 Axact employees here on physical remand over their alleged involvement in fraudulent practices, issuing fake degrees, money laundering and deceiving the public by acting as student counsellors. Civil judge Islamabad Rasool Bakhsh sent the suspects on physical remand for… – Continue reading

Govt aims at documentation of economy

ISLAMABAD: The government has proposed several provisions in the Finance Bill 2015 for documentation of economy. The bill empowers the government to obtain or render information related to transactions undertaken in and outside Pakistan regarding both resident and non-resident taxpayers. Legal cover has been provided to allow government to enter… – Continue reading

Bonus shares: SECP suggests FBR to withdraw 5 percent tax, apply 12.5 percent CGT

The Securities and Exchange Commission of Pakistan (SECP) has proposed to the Federal Board of Revenue (FBR) to withdraw 5 percent tax on bonus shares and apply current capital gains tax (CGT) rate of 12.5 percent irrespective of its holding period. According to the budget proposals of the SECP received… – Continue reading

Tax evasion: FBR probing Axact’s foreign assets, transactions

ISLAMABAD: The Federal Board of Revenue (FBR) has decided to launch an investigation into Axact Pakistan (Pvt) Limited’s assets in foreign countries, including the United Kingdom and the United Arab Emirates, bank accounts, credit card transactions and internet marketing in and outside Pakistan. FBR’s subsidiary Directorate General Intelligence & Investigation… – Continue reading

UK: Non-UK Domiciliaries: Inheritance Tax Issues And Opportunities

This note is intended as an introduction to inheritance tax (IHT) issues that need to be covered where a “non-dom” (an individual domiciled outside the UK) is planning on becoming resident in, or is already resident in, the UK. It should be emphasised that this is a complex subject, and… – Continue reading

On stashed cash: State could impose 10% tax on remittances

ISLAMABAD: As authorities struggle to increase tax collection, the state is considering a proposal that could see a levy of 10% tax on profit made on foreign remittances placed in savings accounts. The proposal comes as the government suspects that the amount sent through remittances could be black money being… – Continue reading

Structural weakness: The tall order against high-profile tax evaders

ISLAMABAD: Haphazard and impractical comments are the norm when tax authorities release collection figures of major political personalities. Newspaper columnists and television anchors try their level best to humiliate them but the endeavour is too shallow to spark a relevant public debate. There is no doubt politicians pay income tax… – Continue reading

NAB suggests ways to FBR to check Rs2,000 bn tax evasion

ISLAMABAD: To check the revenue-related corruption and tax evasion of an estimated Rs2,000 billion annually, the National Accountability Bureau, on the recommendation of its committee of experts, has sent to the FBR a comprehensive package for implementation to overhaul the country’s tax machinery. The creation of an independent Pakistan Revenue… – Continue reading

Royalty, technical fee: PJBF asks FBR to de-notify FED levy

Pakistan-Japan Business Forum has recommended to the Federal Board of Revenue (FBR) to immediately de-notify Federal Excise Duty (FED) on royalty and technical fee, which is now chargeable under the provincial legislation promulgated in Sindh, Punjab and KP, as sales tax on services. Sources told Business Recorder on Saturday that… – Continue reading

Royalty, technical fee: PJBF asks FBR to de-notify FED levy

Pakistan-Japan Business Forum has recommended to the Federal Board of Revenue (FBR) to immediately de-notify Federal Excise Duty (FED) on royalty and technical fee, which is now chargeable under the provincial legislation promulgated in Sindh, Punjab and KP, as sales tax on services. Sources told Business Recorder on Saturday that… – Continue reading

Customs detects 6,660 cases involving tax evasion of Rs 15.82 billion in 2 years

ISLAMABAD: The Pakistan Customs detected 6,660 cases of seizures, mis-declaration or under/over invoicing involving an amount of customs duty and other taxes of Rs 15.825 billion in the last two fiscal years; 2013-14 and 2012-13. “In this connection, 110 FIRs were lodged whereas 179 persons have been arrested; resultantly, an… – Continue reading

Payments and deals: IFC requests Dar to allow WHT exemption

The International Finance Corporation (IFC) has approached Finance Minister Ishaq Dar seeking withholding tax exemption on the payments made or transactions carried out by the IFC, through an amendment in the Second Schedule of the Income Tax Ordinance 2001 along with an exemption certificate from withholding tax provisions from July… – Continue reading

Solving taxation dilemma

Taxation is an extremely important source of funding for any state to finance the running of the Governmental functions. Even the oil-rich Arab states are now beginning to recognise the importance of this and starting to shift towards a lasting economy with citizens contributing to the national treasury with their… – Continue reading

3-member FBR delegation to attend IMF conference in Tokyo from 1st week of April

ISLAMABAD: A three member high level delegation of Inland Revenue-Policy Wing of the Federal Board of Revenue (FBR) will attend a three day conference on regional taxation problems in the first week of April in Japanese capital Tokyo. The conference is funded by the International Monetary Fund (IMF) as well… – Continue reading

Double rates of taxes: AJK tax officials approach FBR

Tax authorities of the Azad Jammu & Kashmir (AJK) have approached the Federal Board of Revenue (FBR) for resolving taxation issues of taxpayers, registered with the AJK’s Board of Revenue, who have to pay double rates of taxes while clearance of their taxable transactions within the territory of Pakistan. Sources… – Continue reading

IMF Calls For Pakistan To Redouble Tax Efforts

The International Monetary Fund has called on the Government of Pakistan to step up its efforts to expand its tax base. The comments came from IMF’s Middle East and Central Asia Department Director, Masood Ahmed, during a recent visit to Islamabad and Lahore where he met with lawmakers, academics, and… – Continue reading

Adjudication forwards Q-Mobile tax evasion case to Preventive Karachi

KARACHI: The Pakistan Customs adjudication has forwarded the Q-Mobile tax evasion case to the Model Customs Collectorate (MCC) Preventive, Karachi for seeking legal and technical reference from the Federal Board of Revenue (FBR). The adjudication department, during the hearing, has completely redundant the view point of MCC-Multan, because as per… – Continue reading

Pakistan and China renegotiate accord to avoid double taxation

Chairman Federal Board of Revenue (FBR) Tariq Bajwa has said that Pakistan and China are re-negotiating agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. On the conclusion of Public Accounts Committee (PAC) at the Parliament House here on Thursday,… – Continue reading

Customs seeks technical support from EDB in tax evasion case against Paramount Corporation

KARACHI: The customs authorities have referred the case of importer Paramount Corporation to the Engineering Development Board (EDB) for seeking technical view point into the case. The sources informed Customs Today that the authorities concerned of Customs Adjudication-II have forwarded the case of Paramount Corporation to the EDB for seeking… – Continue reading

Narendra Modi To Visit Indian Ocean Island Nations In Bid To Counter China’s Influence

On Tuesday, Indian Prime Minister Narendra Modi will embark on a tour of three of India’s island neighbors as part of a charm offensive intended at veering India’s neighbors away from China’s influence and to counter its ‘string of pearls’ strategy in the region. Modi will visit Seychelles, Mauritius and… – Continue reading

India makes big strides: Pakistan seeks to follow new Swiss law on black money

India has made a major breakthrough with Swiss tax authorities, who have agreed to provide information in respect of cases independently investigated by IT department whereas first round of talks have reportedly taken place between Pakistan and Swiss government on revision of Convention for the Avoidance of Double Taxation agreement…. – Continue reading

500 accounts frozen under Anti-Money Laundering Act on FIA request: SBP blocks suspicious transactions of $65m

ISLAMABAD: The State Bank has blocked the suspicious transactions of $65 million originating from Malaysis after finding a suspicious transaction report (STR). The National Action Plan on counter-terrorism requires strict monitoring of banking transactions and active coordination among federal and provincial investigation agencies. So far about 500 accounts are reported… – Continue reading

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Tax collections, so maintains the Federal Minister for Finance Ishaq Dar, have improved significantly and he cited a healthy growth rate of around 13 percent in one of his recent press conferences. Sources within the Ministry of Finance, however, revealed to Business Recorder, but on condition of anonymity that the… – Continue reading

Pakistan’s finance minister rejects allegations of tax evasion

Islamabad: Pakistan’s Finance Minister Ishaq Dar has rejected allegations by Pakistan Tehreek-e-Insaf (PTI) leader that he transferred $4 million to his son in Dubai to avoid taxes. In an open letter to the PTI chairman Imran Khan, the finance minister also refuted the claim that he has been dragging his… – Continue reading

Dubai tax haven: Dar transferred $4m to his son to avoid taxes, says PTI

ISLAMABAD: The Pakistan Tehreek-e-Insaf (PTI) on Thursday reiterated its allegations of money laundering against Finance Minister Ishaq Dar, saying he has transferred $4 million to his son in Dubai to avoid taxes. “The biggest investor in this case is our very own Finance Minister Ishaq Dar. He has on record… – Continue reading

DFID-HMRC mission likely to hold meeting with FBR in first week of March

ISLAMABAD: A delegation of British Department for International Development (DFID) and Her Majesty Revenue & Customs (HMRC) will hold dialogue with the Federal Board of Revenue (FBR) on future course of action to further strengthen bilateral cooperation. The DFID is a department of the British government that leads the UK’s… – Continue reading

Swiss banks: Assets of Pakistanis appear to be exaggerated

Contrary to public perception, a recent investigation into Swiss accounts at one of the world’s biggest banks suggests the collective wealth stashed away by high net worth Pakistani individuals is nowhere near the purported figure of hundreds of billions of dollars. In an investigative project dubbed ‘Swiss Leaks,’ the International… – Continue reading