Best thing to happen to Pakistani tax collection: Pay your taxes or get penalised

[Yaseen1]

if they have paid tax in foreign country they are given credit equal to tax paid in foreign countries i.e their tax liability is subtracted by amount equal to this credit and this is tax law applicable all over world and when I gave exam of taxation this was also applicable at that time here in Pakistan

There are two set of people.

1. Overseas Pakistanis who spend full year overseas, work overseas and pay their taxes overseas.

they are not required to pay taxes.

2. Pakistani's who are Pakistani residence for tax purpose, live in Pakistan but have also earned income from abroad, from projects, rental property, investment etc. As they are residence for Tax purpose therefore they are required to Pay tax in Pakistan on both local source and foreign source income.l

this is the case world over.

 

[Crusher]

and what about the damn salaried class who are not counted among the filers, but have the taxes deducted automatically from their pay.
The Government should automatically include them in the list of filers. Paying up more than due tax, and still not being counted among filers, that sucks.

Because all over the world, the tax filers are only those people who earn a profit doing their business and then pay a share of their net profit in taxes. And we all know that only businesses, companies, traders, freelancers (doctors, journalists, lawyers etc.) fall in that category. All over the world the major tax collection is always contributed by businesses, the taxes from the salaried class is just peanuts compared to the contribution of the taxes by businesses.

 

[1Paki$tani]

if they have paid tax in foreign country they are given credit equal to tax paid in foreign countries i.e their tax liability is subtracted by amount equal to this credit and this is tax law applicable all over world and when I gave exam of taxation this was also applicable at that time here in Pakistan

I wasnt quoting taxation law, but responding generally to your assertion that those earning income from overseas should not pay taxes. Yes, subject to tax law, they might be entitled to credit for foreign paid tax on foreign source income, however, if additional tax is payable based on local laws they should and must pay that.

 

[fitpOsitive]

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Rather than intimidating people, they should implement a system, such that no one can hide anything..
The way they are working, some people will be squeezed to death, and others will walk freely.

 

[newb3e]

zardari aur gernail ko amensty awaam ko dhamki'!! naya maslihat ka shikar buzdil pakistan!

 

[Jf Thunder]

Because all over the world, the tax filers are only those people who earn a profit doing their business and then pay a share of their net profit in taxes. And we all know that only businesses, companies, traders, freelancers (doctors, journalists, lawyers etc.) fall in that category. All over the world the major tax collection is always contributed by businesses, the taxes from the salaried class is just peanuts compared to the contribution of the taxes by businesses.

so?
are they going to jail the salaried class for not being "filers"

 

[Crusher]

so?
are they going to jail the salaried class for not being "filers"

No salaried class is not required to file their taxes if their taxes are already deducted from their salary, however in most countries even salaried class people also sometime file their tax returns to get some of the money back from the tax department such as unaccounted traveling costs or other unaccounted expenses related to their job/work etc.

 

[I.R.A]

and what about the damn salaried class who are not counted among the filers, but have the taxes deducted automatically from their pay.
The Government should automatically include them in the list of filers. Paying up more than due tax, and still not being counted among filers, that sucks.

Everyone should file tax return even if they are exempt from income tax, this includes OSPs who live abroad, earn there but have bought any property in Pakistan. The ones who don't intend to ever come back may chose otherwise.

Now coming to why its necessary an individual including a salaried person himself to file income tax return. For the benefit of the individual he will have all his assets (bought from money on which he has already paid the tax) disclosed in his wealth statement (it is part of annual income tax return) and plus he won't unnecessarily get audited for any concealed income. It makes things easier, it will ensure that leakages within FBR are mitigated, it will help with accurate statistics and will bring the undocumented economy into light .... eventually leading to reduction in tax burden on salaried class.

 

[S.Y.A]

Because all over the world, the tax filers are only those people who earn a profit doing their business and then pay a share of their net profit in taxes. And we all know that only businesses, companies, traders, freelancers (doctors, journalists, lawyers etc.) fall in that category. All over the world the major tax collection is always contributed by businesses, the taxes from the salaried class is just peanuts compared to the contribution of the taxes by businesses.

It is the other way round here. Hope this type of campaign is launched against each and evey company registered in Pakistan, and each and every shop, tuition academy, beauty parlor and restaurant.

 

[I.R.A]

And image in op is not about paying taxes, its related to amnesty that government offered ....... its sort of public notice the deadline of that amnesty scheme ends June 30, 2019. I hope they (the government) have gathered data on concealed assets / income ...... otherwise these warnings are mere warning being given since 1960's

 

[S.Y.A]

Everyone should file tax return even if they are exempt from income tax, this includes OSPs who live abroad, earn there but have bought any property in Pakistan. The ones who don't intend to ever come back may chose otherwise.

Now coming to why its necessary an individual including a salaried person himself to file income tax return. For the benefit of the individual he will have all his assets (bought from money on which he has already paid the tax) disclosed in his wealth statement (it is part of annual income tax return) and plus he won't unnecessarily get audited for any concealed income. It makes things easier, it will ensure that leakages within FBR are mitigated, it will help with accurate statistics and will bring the undocumented economy into light .... eventually leading to reduction in tax burden on salaried class.

That is the problem. They still get harassed if they buy something even on loan, and even if they are able to justify their stance, the FBR assh*les keep on harrasing them. Apna hissa chahiye hota hai sab ko, until and unless one bribes them, or hire a lawyer, this harrassment continues.

 

[zulu]

So far over 5000 application filed under amnesty scheme hope after last speech things go more fast waiting for 30th June to see how much collected this time for reference in last scheme 1 billion dollars was collected

And image in op is not about paying taxes, its related to amnesty that government offered ....... its sort of public notice the deadline of that amnesty scheme ends June 30, 2019. I hope they (the government) have gathered data on concealed assets / income ...... otherwise these warnings are mere warning being given since 1960's

 

[I.R.A]

That is the problem. They still get harassed if they buy something even on loan, and even if they are able to justify their stance, the FBR assh*les keep on harrasing them. Apna hissa chahiye hota hai sab ko, until and unless one bribes them, or hire a lawyer, this harrassment continues.

If everything every source of money is disclosed in your income tax return, no one should harass anyone. There is a legal procedure for tax authorities to follow and no one should do any verbal explanations to any verbal inquiries. It all has to be in writing. Unless you are served with a written notice, I don't know why would you feel the need to respond.

 

[Crusher]

It is the other way round here. Hope this type of campaign is launched against each and evey company registered in Pakistan, and each and every shop, tuition academy, beauty parlor and restaurant.

Yes in Europe it is like this, every company must get officially registered even if it consists of just "one" employ which means only yourself and every company has to submit its income statement on monthly basis, off course sometimes the company will be in loss and on other times it will be earning profit. Tuition academies, shops, beauty parlors, restaurants, tax/bus owners, rented apartment owners, and even "prostitution houses" (no sex without tax) also have to pay taxes from their earnings in most European countries.

 

[I.R.A]

So far over 5000 application filed under amnesty scheme hope after last speech things go more fast waiting for 30th June to see how much collected this time for reference in last scheme 1 billion dollars was collected

These amnesty schemes are useless (tested and tried before) unless government has beforehand data on concealed assets and income, it has identified the people and is ready not to extend the date any further. Khali kholi naray marnay say kuch nai hota mayray bai ....... yeh kissa koi naya nai bohat purana hy.