tax accounting in pakistan
TRANSCRIPT
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Tax Accounting
Is the planning of business strategies based on tax consequences and
avoidance.
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CURRENTLY IRC GOVERNED THE FOLLOWING TAXES
•Income taxes•Estate and gift taxes• Employment taxes•Miscellaneous excise taxes• Alcohol, tobacco, and certain other excise taxes• Procedure and administration• The joint committee on taxation• Financing of presidential election campaigns•Trust fund code• Coal industry health benefits• Group health plan requirements
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Tax Accounting is governed by the Internal Revenue Code
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BASIC TERMS USED IN TAX
•Tax return•Tax form•Internal revenue services•Tax planning
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A Tax Return is a tax form that can be filed with a government body to declare liability for taxation in various countries.
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The IRS is responsible for collecting taxes and the interpretation and enforcement of the internal Revenue Code
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Federal Board of Revenue: The Federal
Board of Revenue (more commonly known by its
initials as FBR) is the semi-autonomous,
supreme federal agency of Pakistan
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FEDERAL BOARD OF REVENUE
•Auditing• enforcing • collecting revenue
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Tax Form: IRS tax forms are used for taxpayers and tax-exempt
organizations to report financial information to the (IRS) of the united
states
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TAX FORM:
•5500•990•1040•Form 8889•Form W-2
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Is a broad term that is used to describe the processes utilized by individuals
and businesses to pay the taxes due to local, state, and federal tax agencies.
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One of the main focuses of tax planning is to apply current tax laws to the revenue that is received during a given tax period
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MINIMIZING THE TAX BURDEN:
•To reduce the adjusted gross income for the tax period •To increase the amount of tax deductions•Effective tax planning has to do with the use of tax credits
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Of Taxation System
Revenue
Redistribution
Repricing
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BASIC TYPES OF TAXES:
Proportional tax
Progressive tax
Regressive tax
Direct tax
Indirect tax
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A Proportional Tax is a tax whose burden is the same proportion of
income for all households.
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A Progressive Tax is a tax whose burden, expressed as a percentage of
income, increases as income increases.
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A regressive tax is a tax whose burden, expressed as a percentage of income, falls
as income increases.
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The Direct Taxes whose burden falls directly on the Tax payers
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The Indirect Taxes which the burden is passed on to a third party
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DOUBLE TAXATION:
A taxation principle referring to income taxes that are paid twice on the same source of earned income
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AGREEMENT FOR AVOIDANCE OF DOUBLE TAXATION
Austria Belgium Bangladesh Canada China Denmark EgyptFrance Finland Germany Greece India Indonesia IranIreland Japan South Korea Lebanon Libya Italy Malta Mauritius Saudi Arabia Singapore Poland Romania Switzerland U.K. Thailand Sri Lanka Sweden Turkmenistan Turkey Tunisia U.S.A Kazakhstan U.A.E.
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Is an electronic facility provided by the FBR to the taxpayers to file income tax returns/statements.
Is simply a way to serve your documents using internet and taxes online system.
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MAJOR FUNCTION PERFORMED BY FBR BY HELP OF E-FILING
•Collection of Taxes•Keeping record of taxpayers •Issuing active taxpayers list more easily and effectively.•Issuance of NTN and sales tax numbers.
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BENEFITS OF E-FILING:
Convenience
Security
Accuracy
Proof of Filing
Direct Deposit
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If you are doing business PAY PROFESSIONAL TAX
If you are selling the goods in business PAY SALES TAX
If you are getting goods from other State/Abroad PAY CENTRAL SALES TAX, CUSTOM DUTY & OCTROI
If you are getting profits in selling goods PAY INCOME TAX
By way of dividend you are going to distribute profit Pay dividend distribution Tax
If the factory is manufacturing the goods PAY EXCISE DUTY
If you having Office / Warehouse/ Factory PAY MUNICIPAL & FIRE TAX
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Having staff in business PAY STAFF PROFESSIONAL TAX
If you are doing business in Millions PAY TURNOVER TAX else Pay Minimum Alternate Tax
If you are taking out over 25,000 Cash from Bank PAY CASH HANDLING TAX
If you are taking your client for lunch & dinner PAY FOOD & ENTERTAINMENT TAX
If you are going Out of station for business PAY FRINGE BENEFIT TAX
If you are taking or giving any Service/s PAY SERVICE TAX
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If you have any Wealth PAY WEALTH TAX
If you are going Cinema or Resort for entertainment PAY ENTERTAINMENT TAX
If you purchased a House PAY STAMP DUTY & REGISTRATION FEE
while Traveling PAY SURCHARGE
some Additional Tax PAY EDUCATIONAL, ADDITIONAL EDUCATIONAL & SURCHARGE ON ALL THE CENTRAL GOVT.'s TAX
If you do not pay any tax at time PAY INTEREST & PENALTY