Internship Report

REGINAL TAX OFFICE FEDERAL BOARD OF REVENUE

MULTAN

Submitted By
Muhammad Sufian Ahmed
BBA-023A18-3
BBA (HONS)
Summer 2022
Submission Date

1
 REGINAL TAX OFFICE FEDERAL BOARD OF REVENUE
MULTAN

Student Name: Muhammad Sufian Ahmed

Registration No: BBA-023A18-3

APPROVED BY:

Supervisor Name: Sir Mansha Yousaf

Internship Coordinator:
Sir M. Hammad

Department of Business Administration,

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 ISP MULTAN, PAKISTAN

Declaration Form

I am Muhammad Sufian Ahmed, Registration No.BBA-023A18-3 program BBA

(Hons) has completed my internship report of 9 weeks at Federal Board of Revenue
RTO, Multan under supervision of Sir Mandsha Yousaf.

Student Name and Signature

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Acknowledgement

I have taken efforts in this project. However, it would not have been possible without the kind
support and help of many individuals and organizations. I would like to extend my sincere
thanks to all of them. I am highly indebted to Mr. Mukhtiar for their guidance as well as for
providing necessary information regarding the project & also for their support in completing
the project. I would like to express my gratitude towards my Supervisor Sir Mansha Yousaf
for their kind co-operation and encouragement which help me in completion of this project. I
would like to express my special gratitude and thanks to industry persons for giving me such
attention and time. My thanks and appreciations also go to my colleague in developing the
project and people who have willingly helped me out with their abilities.

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 Executive summary
The Federal Board of Revenue (FBR) is basically a department that comes under federal government,
it has six departments, which are responsible for formulating and managing fiscal policies, including
federal tax. The task of recovery is assigned to quasi-judicial function of hearing appeals.
I have successfully completed my 9 weeks internship in Regional Tax Office of FBR in Multan from
29 October to 03 December. During the internship, I had the opportunity to different departments i.e.
Audit, Enforcement, HRM and learn about different type of taxes, their withholding and appeal
procedure. We learn functions of (FBR) and roles of department of FBR.

We learn types of taxes like sales income excise tax and also knows about sections
under this actions FBR take legal actions and also knows about what is NTN number how to make
and what’s benefits of NTN number and how to make income tax what’s recruitments of documents
for registration process and visit Shamim & Company (Pvt) Limited.

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Contents
Chapter No 1:......................................................................................................................................................
1. Introduction............................................................................................................................................7
2. Overview of the organization History....................................................................................................8
Chapter No 2:....................................................................................................................................................11
3. Plan of your internship program..........................................................................................................11
a. Brief introduction of the branch or department where you performed your internship......................11
b. The starting and ending dates of your internship.................................................................................11
c. The names of the departments in which you obtained training and the duration of your
training in these departments.......................................................................................................................11
4. Internship Weekly Schedule................................................................................................................12
Week 1st........................................................................................................................................................12
Week 2nd.......................................................................................................................................................12
Week 3rd.......................................................................................................................................................13
Week 4th......................................................................................................................................................13
Week 5th.......................................................................................................................................................13
Week 6th.......................................................................................................................................................14
Week 7th......................................................................................................................................................15
Week 8th.......................................................................................................................................................15
Week 9th.......................................................................................................................................................15
Chapter No 3:....................................................................................................................................................16
5. Learning Experiences...........................................................................................................................16
6. Financial Analysis................................................................................................................................17
7. Conclusion...........................................................................................................................................24
8. References and Sources Used..............................................................................................................25

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Chapter No 1:

1. Introduction

The Federal Board of Revenue (FBR), formerly, referred to as Central Board of Revenue (CBR), is
a federal regulation enforcement corporation of Pakistan that investigates tax crimes, suspicious
accumulation of wealth and none-laundering. The Central Board of Revenue (CBR) changed into
created on April 01, 1924 via enactment of the Central Board of Revenue Act, 1924. In 1944, a full
-fledged Revenue Division changed into created below the Ministry of Finance. After
independence, this association persisted as much as thirty first August 1960 while at the
suggestions of the Administrative Re-organisation Committee, FBR changed into made an
connected branch of the Ministry of Finance. In 1974, in addition adjustments had been made to
streamline the organisation and its functions. Consequently, the publish of Chairman FBR changed
into created with the popularity of ex-officio Additional Secretary and Secretary Finance changed
into relieved of his responsibilities as ex -officio Chairman of the FBR.
In order to dispose of impediments withinside the exercising of administrative powers of a
Secretary to the Government and effective components and implementation of financial coverage
measures, the popularity of FBR as a Revenue Division changed into restored below the Ministry
of Finance on October 22, 1991 . However, the Revenue Division changed into abolished in
January 1995, and FBR reverted again to the pre -1991 position. The Revenue Division maintains
to exist considering the fact that from December 01, 1998. The humans of Pakistan are the number
one stakeholders of the State of Pakistan. The State is administered with the taxes paid through the
masses. Therefore, each citizen of Pakistan has a proper to be knowledgeable approximately the
activities, overall performance, achievements, disasters and plans of the organisation they agree
with with their taxes. On the alternative hand, the Government of Pakistan is closely making an
investment in enhancing the functioning and overall performance of FBR. The goal is to allow
FBR to emerge as an organisation able to accomplishing the government`s goal of self -reliance via
most fulfilling series of revenue.

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2. Overview of the organization History
The Central Board of Revenue (CBR) turned into created in April 1, 1924 via enactment of Central
Board of Revenue Act, 1924. In 2007 authorities extrade Central Board of Revenue into Federal
Board of Revenue via enactment of Federal Board of Revenue Act, 2007.

In 1944, a full-fledged Revenue Division turned into made below the Ministry of Finance. After self-
determination, this association will keep until 30 August 1960. After that FBR turned into made an
connected branch of Ministry of Finance on the advice of Administrative Re- business enterprise
Committee. The FBR popularity of Revenue Division turned into re-construct on October 22, 1960
below the Ministry of Finance to eliminate the obstacles in use of administrative powers with the aid
of using the Secretary to Government and successfully formulate and enforce financial coverage
measures. On the alternative hand the placement of Revenue Division turned into eliminated in
January 1995, and FBR transformed again to 1991 position.

Before 1960, the economic yr of FBR turned into from April 1st to March 31st, in 1960`s it turned
into extrade from July 1st to June 30th. In 1961, FBR create an “Income Tax Committee” for
simplification of Income Tax Ac, 1922 and process of taxation. Before 1965, there's an evaluation
officer for assessing the earnings and decided tax legal responsibility of the man or woman however
in 1965, “Self-Assessment Scheme” turned into introduce. Till 1979, there are a whole lot of
modifications are made withinside the Act, 1922. Due to the ones modifications it turns into tough
and complex to keep work. . Government made a brand new Income Tax regulation named “Income
Tax Ordinance 1979”. This Act additionally consists of all of the primary idea of repeated Act, in
order that the blessings of regulation that constructed over ultimate fifty seven years isn't left useless.

In Income Ordinance 1979 there are numerous amnesty schemes had been introduce to offer the
danger of black cash holders in order that they convert their black cash into white cash.

To replace the earnings tax regulation in Pakistan as according to the requirement of time,
extraordinary strategies had been followed with the aid of using the in a position government like
statutory Regulatory Orders (SRO) and Circulars etc. finance Act is the ordinary supply of extrade,
it's far supplied withinside the month of June in every yr.

Finance Act 2022 relevant from January 16, is one step to the non-stop manner of extrade.
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Competitors
In the Pakistan, FBR have no competitor. Because, they work under the Government of Pakistan.

Brief summary of all the departments

“FEDERAL BOARD OF REVENUE” which is the largest tax collecting organization in Pakistan
& is having a thoroughly established chain throughout the country. An extensive network of 3
large tax pair an 18 regional tax offices makes it one of the largest organizations in Pakistan only.
FBR consists of following major departments:

• Audit department

• legal Department

• HRM Department

• Admin Department

• Collection and Enforcement Department

• Customs department

The function of audit department is to work on the defaulted files through internal and external
auditing. They have to find the difference between the tax payer income shown and which really
exists, if any are found the penalties and extra tax is charged.
The legal wing/department does his function by reposing confidence in the taxpayer community
and simultaneously implementing the tax laws fairly and squarely, the FBR is in the process of
achieving growth in revenues. Legal Wing of the FBR helps in implementation of the tax laws

9
 fairly and squarely which in turn contributes to achieving growth in revenue.
The Legal Wing of FBR is to introduce reforms of reduction in litigation coupled with creating
better environment for taxpayers to discharge their obligation to the State.
HRM department works on how to increase the employee’s motivation. All issues of employees
a resolved by the HRM department i.e. vacations, code of conduct functioning of employees.
Complete information of a certain employees is recorded here.
Collection and enforcement department function is how to collect the revenues and
implementations taxes.
Customs department is responsible for implementing the custom duties on the entry and exit on
the boundaries of country. Custom duties are paid at the port stage and Levi on import and export.
FBR is focusing on the improvement of audit to increase their revenues; new taxing technologies
are also introduced. FBR has distributed his offices on territorial basis naming as inland revenues
are also called regional tax offices. NTN (national tax number) are also focused to avoid excess
taxing.
FBR is also using two software’s which are used for withholding tax and sales tax to save time and
improve efficiency.

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 Chapter No 2:

3. Plan of your internship program

During the duration of internship application I had the possibility to paintings withinside the
extraordinary regions like Audit, Enforcement, HRM and all sort of taxes like as earnings tax, sale
tax, Withholding tax, in addition to extraordinary discussion board of appeals etc.

a. Brief introduction of the branch or department where you

performed your internship
“FEDERAL BOARD OF REVENUE” that's the biggest tax accumulating agency in Pakistan & is
having a very well mounted chain at some stage in the country. An considerable community of three
huge tax pair and 18 local tax places of work makes it one in all the biggest groups in Pakistan only. I
even have achieved internship withinside the Regional Tax workplace Multan beneath the
supervision of Director Human Resource Management Mr. Mukhtar Hussain Thaheem and we've
labored in 6 specific departments of FBR. It became completely Diversified surroundings and extra
than 2 hundred humans are running in FBR.

b. The starting and ending dates of your internship

I started the internship program from 29 October, 2022 to December 03, 2022

c. The names of the departments in which you obtained training

and the duration of your training in these departments.
The name of the following department in which I got training.

• Audit department

• legal Department

• HRM Department

• Admin Department

• Collection and Enforcement Department

• Customs department
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The duration of my training was 9 weeks.

4. Internship Weekly Schedule

Week 1st
In the first week of the internship, we learn about the federal board of revenue and its
two main domains, Inland Revenue Service (IRS) and Customs. IRS includes income tax, general
sales tax, withholding tax and excise duty. Customs monitors Import and Export and Anti-
Smuggling. The two domains are further divided into departments. We know that withholding tax
is deducted from the salary of government employees. There is a method of communicating with
the general public to get their details, an audit of individual persons as well as groups or
organizations, many types of tax frauds and how they are detected.

Week 2nd
In second week we learn history of Federal Board of Revenue (FBR) and also knows
departments of (FBR) and also learn Functions of Federal Board of Revenue (FBR) Filler
and non-Filler: A person who had a registered NTN number also file return annually is
filler and the one who is not filled return annually is Non-filler even though he have a
registered NTN number. Active Taxpayer: Active Taxpayer is the registered Entity Who
Does Not Fall in the A person is blacklisted (Whose Registration Is Suspended or
Blocked). Fails to File the Return Fails to File the Income Tax Return Forum of Appeal: -
If FBR find any fraud in data they can collect information from Land revenue, Vehicle,
Banks etc. That person or company has right to appeal in different forum like
Commissioner Appeal - Applet Tribunal – High Court – Supreme Court – president etc.

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Week 3rd

In the 3rd week we learn tax of nature and notice sent by the FBR.
The sale of tangible personal property by manufacturers and producers is covered by this section.
Retail Sales Tax is imposed on retail sale of tangible personal property to end consumers and
industrial consumers.
A registered person not allowed to adjust input tax is greater than the output tax for the period.

Week 4th

In the 4th week, we learn about who is a common tax payer and what the special exercise duty is.
Goods which are manufactured or imported into Pakistan have been subjected to a special FED of
1%. The duty is included in the First Schedule of the Federal Excise Act. The Central Excises Act
of 1944 was repealed by the Federal Excise Act of 2005. Significant changes have been brought
about by the new Act. The word was used in a different way.
Therefore, now the term “Federal Excise Duty” is more appropriate as compared to old “Central
Excise Duty” for the duties of excise levied under the 2005 the system of physical supervision has
been entirely done away with and now all clearances will be self-assessed and no prior permission
for clearance will be required. The duty on all clearances will be paid by the 15th of next month.
The previous requirement of payment of duty prior to clearance has been changed.

Week 5th
In 5 week we learn sections under (FBR) this sections takes legal actions.
th

Sec 49: If a person buys a factory and it has a pending sale tax, they are liable to pay that tax.
Sec 59: Newly registered factories have the right to claim input tax if it is purchased locally within 30
days. They have to give a tax invoice for imported goods.
Sec 38:An officer with the permission of the commissioner can do an investigation audit Any
company.
Sec 38B: Audit gives the department officer the right to claim information.
Sec 40B:The department has the right to watch the purchase, production and sale of any factory.
Sec 45B: Companies have the right to file an appeal.It needs to be filed within 30 days.
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Sec 46:Companies have a right to file a second appeal within 60 days.
Sec 47:Companies have a right to file reference in high court within 90 days.

Week 6th
In 6 week learn about federal excise duty act (2005) Import: On import good
th

custom/excise duty will be paid. Export: There is no tax will be applicable on export good.
These are ‘0’ rated tax also input tax will refund on it. Zero Rating: Goods shall be charge
to tax at the rate of zero percent but government remove in future and goods shall not be
charge to tax at zero percent. Input Tax: Already paid tax, like a company purchase a raw
material they already paid sale tax on it is called input tax Output Tax: Taxes that are paid
on final product. These taxes has to pay to government. Determination of Tax Liability: A
registered person did not deduct input tax within the relevant period. Tax Credit not
allowed: Goods sale and purchase is not verifiable in the supply chain of input tax.

Week 7th
In 7th week we learn about what NTN number and registration process and Income tax
return is filing process and sales tax return process and how to make NTN

•
NTN registration process

FBR – IRIF – Registration form – Submit

•
Income Tax return filing process Adding CNIC – login – Form 181. Sale Tax return
filling process
Adding CNIC – login – Sale Tax – File Sale Tax Return.

Week 8th
The federal board of revenue conducted a seminar in the 8th week to educate people
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about filing income tax returns. People from different walks of life attended that seminar. When you
register in the IRIS portal of FBR as a filer, you will be given all the necessary information to file
income tax returns every year and check your active status. The benefits of being a filer were
discussed and people were encouraged to file income tax return to take advantage of them.

Week 9th
During the 9th week of the internship, the federal board of revenue organized an
industrial visit in which we visited a company called Shamim & Company limited. The production
process of the company, their brands and types of beverages are discussed in this visit. A visit was
arranged in all the departments and sub- departments of the RTO.

Chapter No 3:

5. Learning Experiences
a. Knowledge acquired:
During my internship, I kept a journal and took notes every day about new things I learned,
feedback I received from my manager, strengths and weaknesses I noticed, and things I wanted to
research and learn more about. I was able to identify the areas that I needed to improve in.
b. Skills learned:
Skills that I have learned from my course related to my area of specialization
(finance) are:
 Accounting skills
Basic understanding of accounting, like preparing balance sheet and
maintaining it, making and managing cash flow statements, and other accounting-related
documents and functions.
 Data management
Data management is summarized as collecting, validating, processing,
and storing data.

 Financial management
well-versed in the basic fundamentals of financial management to

15
 help the organization make the best of their revenue.

c. Observed attitudes and gained values:

During my internship, I realized that there are many students who don't value internship, but that
internship is the best way to get valuable experience that helps you all over career.
My internship helped me set my career goals and objectives.
The person I was reporting to during internship was where I was and he showed me what I needed to
do to get to the best possible destination.

6. Financial Analysis
It is defined as the process of evaluating businesses, projects, budgets, and other finance-related
transactions to determine their performance and suitability.

Why need Financial Analysis

If conducted internally, financial analysis can help managers make future business decisions or
review historical trends for past successes.
If conducted externally, financial analysis can help investors choose the best possible investment
opportunities.

Balance Sheet
It is defined as financial statement that reports a company's assets, liabilities and
shareholders' equity at a specific point in time, and provides a basis for computing rates of
return and evaluating its capital structure.
Why need Balance Sheet
o A balance sheet is a financial statement that reports a company's assets, liabilities and
shareholders' equity.
o The balance sheet is a snapshot, representing the state of a company's finances (what it
owns and owes) as of the date of publication.

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 Income Statement
It is defined as the financial report showing a company's performance over a period of time by
subtracting expenses from revenue to obtain net income
Why need Income Statement
o Determine performance of the company.
o Determine Stability of the company

Balance Sheet

2017 2016 2015

Rupees Rupees Rupees
in in in
million million million
ASSETS AND
LIABILITIES
1,278,00 1,102,28
Assets 6 9 924,333
Long Term Assets 123,727 86,232 72,696
Loans and Advance 60,879 69,196 67,460
Current Assets 57,845 69,128 54,412
Cash & Bank and 1,520,46 1,326,84 1,118,90
Treasuries 6 5 1
3040923 2653690 2237802

Liabilities and Equity

Public Debt 439,398 418,872 376,508
Special Deposits 64,555 65,427 55,851
Trust Account 106,781 72,769 65,816
Current Liabilities 63,099 62,961 581,966
Residual Equity 846,633 706,816 562,530
1,520,46 1,326,84 1,118,90
6 5 1

17
FBR INCOME STATEMENT

2017 2016 2015

Rupees Rupees Rupees
in in in
million million million
OTHER INCOME
Revenue
1,076,89 1,038,45 817,09
Taxation 6 1 1
Non-Taxation 196,553 69,735 84,568
1,273,44 1,108,18 901,65
Total revenue 9 6 9

Capital
104,91
Dornestic Debt 128,000 127,500 2
Foreign Debt 21,014 18,898 30,061
Recoveries of Loans and
Advances 996 671 492
Recoveries others 128,792 102,023 76,760
212,22
Total capital 278,802 249,092 5

PAYMENTS
Revenue
451,66
General Public Service 579,311 477,945 7
Economic Affairs 129,771 288,329 87,835
Public Order and Safety Affairs 123,500 110,811 98,944
Education Affairs and Services 86,731 63,925 54,465
Health Affairs and Services 127,665 87,487 66,611
Housing and Cornrnunity
Arnenities 69,235 55,981 88,904
Recreation, Culture and Rdigion 3,209 4,370 3,059
Social Protection 10,940 28,691 22,875
Environrnent Protection 331 194 185
1,130,69 1,117,73 874,54
Total revenue payment 3 3 5

Capital
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 157,35
General Public Service 160,264 117,424 8
122,54
Econornic Affairs 301,234 115,162 1
Housing and Cornrnunity
Arncnitics 160 226 367
Social Protcction 226 1,113 1,912
282,17
Total capital payments 461,884 233,925 8

Horizontal analysis of Balance

Sheet

% of % of
2017 2016 2015 2017 2016
ASSETS AND
LIABILITIES
1,278,00 1,102,28 15.94110
19.25236
Assets 6 9 924,333 1 9
43.48153
18.62000
Long Term Assets 123,727 86,232 72,696 8 7
- 2.573376
Loans and Advance 60,879 69,196 67,460 12.01948
8
27.04550
Current Assets 57,845 69,128 54,412 -16.3219 5
Cash & Bank and 1,520,46 1,326,84 1,118,90 14.59258 18.58466
Treasuries 6 5 1 6 5
14.5922 18.58466
3040923 2653690 2237802 47 5

Liabilities and Equity

4.900303 11.25181
Public Debt 439,398 418,872 376,5087 9
-
Special Deposits 64,555 65,427 55,851 1.332783 17.14562
46.73968
Trust Account 106,781 72,769 65,816 3 10.5643
0.219183 -
Current Liabilities 63,099 62,961 581,966 3 89.18133
19.78124 25.64947
Residual Equity 846,633 706,816 562,530 4 6
1,520,46 1,326,84 1,118,90 14.5925 18.58466
6 5 1 86 5
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20
Vertical analysis of Balance Sheet

% of % of % of
2017 2016 2015 2017 2016 2015
ASSETS AND
LIABILITIES
1,278,00 1,102,28
Assets 6 9 924,333 42.03 41.54 41.31
Long Term Assets 123,727 86,232 72,696 4.07 3.25 3.25
Loans and Advance 60,879 69,196 67,460 2.00 2.61 3.01
Current Assets 57,845 69,128 54,412 1.90 2.60 2.43
Cash & Bank and 1,520,46 1,326,84 1,118,90
Treasuries 6 5 1 50.00 50.00 50.00
3040923 2653690 2237802 100 100 100

Liabilities and Equity

Public Debt 439,398 418,872 376,508 28.90 31.57 33.65
Special Deposits 64,555 65,427 55,851 4.25 4.93 4.99
Trust Account 106,781 72,769 65,816 7.02 5.48 5.88
Current Liabilities 63,099 62,961 581,966 4.15 4.75 52.01
Residual Equity 846,633 706,816 562,530 55.68 53.27 50.28
1,520,46 1,326,84 1,118,90 100.0 100.0 100.0
6 5 1 0 0 0

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 Horizontal
analysis of
income
OTHER INCOME statement
% of % of
Revenue 2017 2016 2015 2017 2016
1,076,89 1,038,45 817,09
Taxation 6 1 1 2701.1 369.1
Non-Taxation 196,553 69,735 84,568 55.0 -570.1
1,273,44 1,108,18 901,65
Total revenue 9 6 9 670.6 436.6

Capital
104,91 25500.
Dornestic Debt 128,000 127,500 2 0 464.5
Foreign Debt 21,014 18,898 30,061 893.1 -269.3
Recoveries of Loans and
Advances 996 671 492 206.5 274.9
Recoveries others 128,792 102,023 76,760 381.1 303.8
212,22
Total capital 278,802 249,092 5 838.4 575.7

PAYMENTS
Revenue
451,66
General Public Service 579,311 477,945 7 471.5 1718.8
Econornic Affairs 129,771 288,329 87,835 -181.8 43.8
Public Order and Safcty Affairs 123,500 110,811 98,944 873.3 833.8
Education Affairs and Services 86,731 63,925 54,465 280.3 575.7
Health Affairs and Services 127,665 87,487 66,611 217.7 319.1
Housing and Cornrnunity
Arnenities 69,235 55,981 88,904 422.4 -270.0
Recreation, Culture and Rdigion 3,209 4,370 3,059 -376.4 233.3
Social Protection 10,940 28,691 22,875 -161.6 393.3
Environrnent Protection 331 194 185 141.6 2055.6
1,130,69 1,117,73 874,54
Total revenue payment 3 3 5 8624.5 359.6

Capital
22
 157,35
General Public Service 160,264 117,424 8 274.1 -394.0
122,54 -
Econornic Affairs 301,234 115,162 1 61.9 1660.7
Housing and Cornrnunity
Arncnitics 160 226 367 -342.4 -260.3
Social Protcction 226 1,113 1,912 -125.5 -239.3
282,17
Total capital payments 461,884 233,925 8 102.6 -584.8

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 Vertical analysis of income
OTHER INCOME statement
% of % of
Revenue 2017 2016 2015 2017 2016 % of 2015
Taxation 1,076,896 1,038,451 817,091 84.57 93.71 90.62
Non-Taxation 196,553 69,735 84,568 15.43 6.29 9.38
Total revenue 1,273,449 1,108,186 901,659 100 100 100

Capital
Dornestic Debt 128,000 127,500 104,912 45.91 51.19 49.43
Foreign Debt 21,014 18,898 30,061 7.54 7.59 14.16
Recoveries of Loans and
Advances 996 671 492 0.36 0.27 0.23
Recoveries others 128,792 102,023 76,760 46.19 40.96 36.17
Total capital 278,802 249,092 212,225 100 100 100

PAYMENTS
Revenue
General Public Service 579,311 477,945 451,667 51.24 42.76 51.65
Econornic Affairs 129,771 288,329 87,835 11.48 25.80 10.04
Public Order and Safcty Affairs 123,500 110,811 98,944 10.92 9.91 11.31
Education Affairs and Services 86,731 63,925 54,465 7.67 5.72 6.23
Health Affairs and Services 127,665 87,487 66,611 11.29 7.83 7.62
Housing and Cornrnunity
Arnenities 69,235 55,981 88,904 6.12 5.01 10.17
Recreation, Culture and Rdigion 3,209 4,370 3,059 0.28 0.39 0.35
Social Protection 10,940 28,691 22,875 0.97 2.57 2.62
Environrnent Protection 331 194 185 0.03 0.02 0.02
Total revenue payment 1,130,693 1,117,733 874,545 100 100 100

Capital
General Public Service 160,264 117,424 157,358 34.70 50.20 55.77
Econornic Affairs 301,234 115,162 122,541 65.22 49.23 43.43
Housing and Cornrnunity
Arncnitics 160 226 367 0.03 0.10 0.13
Social Protcction 226 1,113 1,912 0.05 0.48 0.68
Total capital payments 461,884 233,925 282,178 100 100 100

24
Ratio Analysis
Current Ratio:
The current ratio is a liquidity ratio that measures whether a firm has enough resources to meet its
short-term obligations.
Current Assets / Current Liabilities
Year 2017 2016 2015
Current Assets 57,845 69,128 54,412
Current Liability 63,099 62,961 581,966
Current Ratio 0.92 1.10 0.09

Current ratio had been 0.09 in 2015 and in 2016 it increased to 1.10 and again slightly decreased in
2017 to 0.92 compared to year 2015.

Cash Ratio:
The cash ratio is a liquidity measure that shows a company's ability to cover its short-term
obligations using only cash and cash equivalents.
Cash + Cash Equivalents / Current Liabilities
Year 2017 2016 2015
Cash +Cash 1,520,46
Equivalent 6 1,326,845 1,118,901
Current Liability 63,099 62,961 581,966
Cash Ratio 24.10 21.07 1.92

Cash ratio had been 1.92 in 2015 and in 2016 it increased to -21.07 and then slightly increased to
24.10 in 2017 as compared to year 2015.

Debt to Equity Ratio:

Debt-to-equity ratio is used to evaluate a company's financial leverage
Company's total liabilities / shareholder equity
Year 2017 2016 2015
Total Liability 1,520,466 1,326,845 1,118,901
Shareholder's Equity 846,633 706,816 562,530
D/E Ratio 1.80 1.88 1.99

D/E ratio had been 1.99 in 2015 and in 2016 it decreased to 1.88 and in 2017 it again slightly
decreased to 1.80 as compared to year 2015

25
Problem identification and Solution
a. Problem identification:
FBR is seriously overstaffed at the lower ranks and understaffed in key functional areas, such as
audit. In the face of self-assessment in vogue in domestic taxes, there is a need of increasing auditors
and skilled staff for maximum revenue generation.
b. Consequences of the current problem:
Apart from huge cost of relief in term of revenue foregone, there is another cost of time consumption.
The application of tax become difficult and takes more time the treatment of exempted goods for
checking exemptions/SROs(Statutory Regulatory Orders) while ensuring due revenue deposited in
national treasury.
c. Solutions:
In this scenario, modernization of FBR requires funds. In fact, more resources are required by the
government for better enforcement and improved compliance. Hence, the government has to look for
donors like World Bank and IMF.

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7. Conclusion
It is properly mounted that the fee of tax series is low in Pakistan compared to some
of the countries. It means that the taxation device is affordable in this rating and displays
administrative performance to a few extent. It does now no longer imply that the whole lot goes
properly on a part of tax management. On the alternative hand, the final results of the useful resource
mobilization efforts is low as tax-GDP is pretty low. In this context, the fee of series is a vulnerable
indicator of the performance of tax management because of numerous barriers and irrelevancies.
There are numerous troubles with taxation device of Pakistan like massive exemptions, wider tax gap,
low tax-GDP ratio, much less powerful audit and penalty device etc. If those troubles are settled, tax
sales will enhance appreciably that allows you to in addition carry down the fee of series.
Improvement in sales series thru decreased fee of series must then be considered as a derivative of
powerful control of human & bodily resources.

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8. References and Sources Used
 https://www.fbr.gov.pk/

 FBR Biannual/Quarterly Review-2022

 Employees of Federal Board of Revenue

 Controller General of Accounts Financial Report 2017-2015

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