TAXATION MANAGEMENT

By
Abdul Moueed
PhD (Finance)
Academic Background

Title Specialization Year

M.Com Finance 2009

M.Phil Finance 2015

PhD Finance 2020

(Behavioral Finance)
Teaching and Research Experience
More than 10 years of teaching experience
Major Subjects are
 Corporate Finance
 Taxation Management
 Corporate Governance
 Islamic Banking
 Investments and Portfolio Management
 Financial Accounting
 Cost and Management Accounting
Teaching and Research Experience

 Supervision of Research projects and Thesis of Graduate

and Master’s level students (BBA, MBA and MSc)
 National college of business administration and economics,
Lahore
 DHA Campus
 Chenab college of advanced studies, Faisalabad
 Ripha international university (Informatics College,
Faisalabad)
Research Publications
 I have published 8 Research Papers and 2 items are in
publishing process

 Google Scholar/ Research Gate

 Research Items = 8 & Citations = 21

Chapter 1:
Income Tax Law
in Pakistan
Income tax principles and practice
By
Abdul Moueed
Chapter 1:

 What is tax?

Tax is derived from a Latin word ‘taxo’ means “burden

or duty”
 Definition of Tax

 A tax is a compulsory financial charge imposed by a governmental

organization upon a taxpayer (Individual or Legal entity) in order
to finance public expenditures.
Chapter 1:
 History of Tax
 The first known taxation took place in Ancient Egypt around 2800-3000
years BC.

 Taxation in Pakistan
 Income tax was introduced for the first time in the year 1860 by British
Rulers in undivided India (Income Tax Act, 1860).
 Revised in 1886
 Replaced by Income Tax Act 1918
 Revised in 1922
 In 1947 after independence from British Rule, Pakistan Government adopted
the Income Tax Act, 1922
Chapter 1:
 Taxation in Pakistan (Cont..)

 Income Tax Ordinance, 1979

 Income Tax Ordinance, 2001 with latest amendments

 Components of Income Tax Law

 Income tax ordinance, 2001 (as amended)
 Rules framed by the Board
 Notifications, circulars and orders
 Finance Acts or Ordinances
Chapter 1:
 Types of Government Taxes

 Custom duty
 Excise duty
 Income tax
 Sales tax
 Corporate income tax
 Zakat and Ushar (Islamic obligations)
Chapter 2:
Definitions
 ACCUMULATED PROFITS

 Any reserves maintained by a business

 All profits distributed
 Profits kept in whatever shape
Chapter 2:
Definitions (Cont…)
 ACTIVE TAX PAYER LIST
 Revise every year
 APPELLATE TRIBUNAL
 In case of ant dispute between taxpayers and Tax department

 APPROVED GRATUITY FUND

 APPROVED EMPLOYMENT PENSION/ANNUITY SCHEME

Chapter 2:
Definitions (Cont…)
 ASSESSMENT
 Tax related data checked by department or person

 ASSESSMENT YEAR
 Means the period of 12 months, beginning on the first date of July

 ASSOCIATION OF PERSONS
 It includes a firm, artificial judicial person, body of persons formed under foreign
law
 Does not include a company
Chapter 2:
Definitions (Cont…)
 AGRICULTURE INCOME
 It means income
1. Derived from land
2. Land is situated in Pakistan
3. Land is used for agriculture purposes
 It does not include;
1. Income from stone quarries
2. Income from fisheries
3. Income from flour mills
4. Income from brick making
Chapter 2:
Definitions (Cont…)
 AGRICULTURE INCOME
Types of Agriculture income
1. Rent
2. By agriculture
3. To make product fit for market, cultivator or facilitator
4. Sale of product
5. Building required for agriculture purpose
Chapter 2:
Definitions (Cont…)
 BANKING COMPANY
 Which transacts banking nosiness in Pakistan

 BOARD
 Central board of revenue now federal board of revenue (FBR)

 BUSINESS
 It includes trade, commerce, manufacture, profession
 Does not include employment
Chapter 2:
Definitions (Cont…)
 CAPITAL ASSET
 Property of any type held by a person
It does not include;
1. Stock in trade
2. Raw materials
3. Wearing apparel, jewelry

 CHARITABLE PURPOSE
Chapter 2:
Definitions (Cont…)
 COMPANY

1. A COMPANY
2. A MODARABA
3. A TRUST
4. A COOPERATIVE SOCIETY
5. A SMALL COMPANY
6. A FOREIGN COMPANY
Chapter 2:
Definitions (Cont…)
 COMMISSIONAR
 CO-OPERATIVE SOCIETY
 Under co-operative societies Act, 1925
 DEBT
 DEPRECIABLE ASSET
 DIVIDEND
 Profits distributed to share holders
Chapter 2:
Definitions (Cont…)
 FILER
 FIRM
 FOREIGN SOURCE INCOME
 INCOME
 NON-PROFIT ORGANIZATION