Lahore University of Management Sciences

Applied Taxation – ACCT 370

Fall 2021

Instructor Rabia Saleem

Room No. 441
Office Hours 60 minutes after the end of each lecture
Email Rabia.saleem@lums.edu.pk
Telephone
Secretary Nabila Shazadi
TA Office Hours TBA
Course URL (if any)

COURSE BASICS
Credit Hours 3
Lecture (s) Nbr of Lec (s) Per Week 2 Duration 75 mins
Recitation/Lab (Per Week) Nbr of Lec (s) Per Week NA Duration
Tutorial (Per Week) Nbr of Lec (s) Per Week TBA Duration

COURSE DISTRIBUTION
Core Yes
Elective N/A
Open for Student Category Juniors and Seniors
Close for Student Category Freshman

COURSE DESCRIPTION

Course Description: The course covers operation of Pakistan’s federal tax system, both direct and indirect with
specific reference to:
• Computation of taxable income under various heads for individuals, partnerships and corporations
• Calculation of tax liability including computation of various exemptions and reliefs available for different
categories of taxpayers.
• Explanation and application of the principles of General Sales Tax in particular and Federal Excise Tax in
general.

COURSE PREREQUISITE(S)
An understanding of accounts from “Principles of Financial Accounting”
All students are compulsorily required to bring their own books and calculators to the class.
Tax laws are ever-changing and each year the Finance Act brings in its wake a number of amendments.
It is advised to consult the latest law as amended by the Finance Act 2021 for the course and not an
earlier version
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COURSE TEACHING METHODOLOGY (Please Mention Following Details in Plain Text)

• Teaching Methodology: Blend of Synchronous and Asynchronous. The students are expected to attend live
interactive sessions. The class lecture will be uploaded on LMS in advance of each lecture. The lecture notes
will be further explained and completed during the online session. A number of illustrations will be shown
during the lecture related to the topic to make the topic more relevant for the students.

• Lecture details: 95% lectures will be delivered via live interactive sessions on Zoom. 1 or 2 pre-recorded lectures
may be uploaded in advance of the class in light of how the course progresses.

COURSE LEARNING OUTCOMES (CLO)

The course aims at giving the students:
1. an opportunity to gain knowledge and understanding in the area of direct and indirect taxes
2. learn application of tax laws related to both business and individual’s own tax matters.

Upon completion of the course, students would be able to;

1. Demonstrate understanding of both direct and indirect tax laws…

2. Apply the acquired knowledge in day to day affairs

UNDERGRADUATE PROGRAM LEARNING GOALS & OBJECTIVES

General Learning Goals & Objectives

Goal 1 - Effective Written and Oral Communication

Objective: Students will demonstrate effective writing and oral communication skills

Goal 2 - Ethical Understanding and Reasoning

Objective: Students will demonstrate that they are able to identify and address ethical issues in an
organizational context

Goal 3 - Analytical Thinking and Problem-Solving Skills

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Objective: Students will demonstrate that they are able to identify key problems and generate viable
solutions

Goal 4 - Application of Information Technology

Objective: Students will demonstrate that they are able to use current technologies in business and
management context

Goal 5 - Teamwork in Diverse and Multicultural Environments

Objective: Students will demonstrate that they are able to work effectively in diverse environments

Goal 6 - Understanding Organizational Ecosystems

Objective: Students will demonstrate that they have an understanding of Economic, Political,
Regulatory, Legal, Technological, and Social environment of organizations

Major Specific Learning Goals & Objectives

Goal 7 (a) – Program Specific Knowledge and Understanding

Objective: Students will demonstrate knowledge of key business disciplines and how they interact
including application to real world situations. (including subject knowledge)

Goal 7 (b) – Understanding the “Science” behind the decision-making process (for MGS Majors)
Objective: Students will demonstrate ability to analyze a business problem, design and apply
appropriate decision-support tools, interpret results and make meaningful recommendations to
support the decision-maker

Indicate below how the course learning objectives/outcomes specifically relate to any program learning goals and
objectives. (CP, Cases, Exam Assignments, Quizzes, etc)

Program Learning Goals and Course Learning Objectives Course Assessment Item
Objectives
Goal 1 - Effective Written and Oral Session 1 in particular and Written Assignment 1
Communication throughout the course in general

Goal 2 - Ethical Understanding and Session 1 in particular and Written Assignment 1 & 2
Reasoning throughout the course in general

Goal 3 - Analytical Thinking and Session 2 throughout session 28 All quizzes and Assignment 2
Problem-Solving Skills

Goal 4 - Application of Information N/A N/A

Technology
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Goal 5 - Teamwork in Diverse and N/A N/A
Multicultural Environments

Goal 6 - Understanding Organizational Closing session in particular and Throughout the course through
Ecosystems throughout the course build up quizzes and assignments

Goal 7 (a) - Program Specific Throughout the entire course session Throughout the course through
Knowledge and Understanding 1 – 28. quizzes and assignments
(Subject Knowledge)

Goal 7 (b) - Understanding the NA NA

“science” behind the decision-making
process

GRADING BREAKUP AND POLICY

The course grade is based on the following criteria:

Assignments (2 in total) 25%

Test 1 25%
Test 2 25%
Test 3 25%

Specific Instructions (If Any) (Please remove the text which is irrelevant to your course.)

There will be NO quizzes, mid-term or final examination, Students would be graded on the basis of 3 one hour tests
conducted in the 9th, 18th and 28th sessions. These tests would be open book. Calculators are allowed but not
mobile phones. Anyone missing these tests will do so at his/her own risk. In insuperable case the average marks
obtained by the class in general for that test OR the average mark obtained by the student in any of his/her tests,
whichever is lower, would be allotted otherwise the mark would be considered as zero.
Students are encouraged to attend classes regularly. The course is a technical application of complex tax laws of
Pakistan and cannot be understood well without keeping up the pace of the lectures in a timely manner.

Any missed class or part of a lesson has been observed to have very adverse effects on students, who tend to face
difficulty in understanding the subsequent lectures or keeping pace with the class. It is the student’s own
responsibility to make up for any missed lesson by contacting the instructor or the TA for guidance
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EXAMINATION DETAILS

NO
Midterm
Exam

NO
Final Exam

COURSE SCHEDULE
Week/
Lecture/ Recommended Objectives/Application
Session Topic (s) /Case (s)
Module/ Readings Session Outcome (s)
Session
Introduction to the Federal Tax General discussion on philosophy of
Common rules, definitions and concepts Laws taxation, direct and indirect taxes.
Session 1 related to Income Tax Powers of federal and provincial
governments to levy income tax.
Ethical considerations.
Common rules, definitions and concepts Sections (Ss) 2,3,4, 5, 5A, 6, 7, 7A, Getting accustomed to the charge of
related to Income Tax 7B, 8, 101 from the Income Tax income tax and legal terms.
Session 2 Ordinance, 2001 (ITO) Some basic concepts & geographical
sources of income. Identifying types
of persons.
Provisions governing persons Ss 74, 80 to 84 from ITO Concept of Persons in more detail,
Session 3 residential status and tax year.
Classification of income and taxability Ss 9, 10, 11 from ITO Broad divisions of income and
Session 4 Fist Schedule method of calculating tax for various
persons
Salary Ss 12, 13, 14, Para (1A) First Learning to compute income from
Session 5 Schedule, Rules 3, 4, 5, 6 & 7 salary
Salary The above plus Parts I & III of 2nd -do-
Session 6 Schedule
Income From Property Ss 15, 15A, 16 Calculating income from property
Relevant provisions for computing and its related provisions
Session 7 income

Income from other sources. Ss 39,40 Assessing income from this residual
Session 8 head
Session 9 TEST 1
Profits chargeable to tax as 'income from Ss 18, 19 20, 21, 22, 23, 24, 25 & 32. Calculating income from business
Session 10 business' and its related provisions
Rules 10-13

Session 11 -do- -do- -do-

Session 12 -do- -do- -do-
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Income from Capital Gains Ss 37,37A, 38, 68,75, 76, 77, 78 & Understanding capital gain and
Session 13 79; First, Second & Eighth computing income there from
Schedules
Rules pertaining to set-off & carry forward of 56 to 59A only of the ITO Learning the methods
Session 14 losses
Session 15 -do-
Taxation of Individuals, AOPs & Companies Sec86, 92 and sec94 Understanding the implications of
Session 16 various heads of income for different
persons
Session 17 -do- Sec86, 92 and sec94
Session 18 TEST 2
Advance Tax and Withholding Tax Regime Ss 147 to 169 and Concept of paying taxes in advance
Session 19 Ss 231A to 236X
Session 20 -do-
Procedure under the income tax law Ss 114, 115, 116, 118, 182, 191, Who are liable to file returns and
Session 21 205 (read with 137(1)) & 119 of how.
the ITO -
Procedure continued SS 127 to 133 of ITO The appellate procedure-
Session 22
Overview, common rules, definitions and Ss 1 to 13 & 3rd 5th 6th and 8th Learning the essential concepts of
Session 23 concepts of sales tax Procedure continued Schedules of the Sales Tax Act indirect taxes
1990 (STO)
-do- Rules Procedure
Session 24
Session 25 -do- -do- -do-
Session 26 -do- -do-
Overview, common rules, definitions and Ss 1 to 8 of the Federal Excise Act More forms of indirect taxes
Session 27 concepts of federal excise duty 2005

TEST 3 -do- -do-

Session 28

TEXTBOOKS (S) /SUPPLEMENTATY READINGS s

Textbook: Huzaima & Ikram’s Federal Tax Laws of Pakistan in 2 volumes [Fourth Edition as amended upto July 1, 2020]
by Mrs. Huzaima Bukhari & Dr. Ikramul Haq, published by AA Consultants & Publishers, #14, 2nd Floor, Sadiq Plaza, The Mall, Tel: 36365582 &
36280015 email: sales@aacp.com.pk website: http://aacp.com.pk
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