TIn Pakistan, as in many jurisdictions, a tax can be levied only by, or under, the authority of an Act of Parliament. While taxation of income (other than agricultural income) is governed by the Income Tax Ordinance 2001 as amended from time to time, the Sales Tax Act 1990 deals with sales tax at Federal level. Sales tax on services is a provincial subject and not examinable in Paper F6 (PKN). According to the guidelines issued by ACCA, relevant legislation (including Ordinance) which receives President’s assent on or before 30 September 2013 will be assessed for the first time in the June 2014 sitting of Paper F6 (PKN).

“Experienced Attorneys Aggressive Representation.”

The Finance Act 2013 is effective from 1 July 2013 and is therefore examinable in the June and December 2014 sittings of Paper F6 (PKN). It has been observed that many candidates do not give due attention to the changes brought about in the latest examinable Finance Act. Therefore, candidates are advised to go through these amendments carefully so that they can answer exam questions accurately and earn good marks accordingly.

It should be noted that references to the different sections of the Income Tax Ordinance 2001 and the Sales Tax Act 1990 are for additional information only, as candidates are not required to be able to quote these when answering the F6 (PKN) paper.

Our Personal Approach

Waqar and Waqar Law Chambers has a strong and varied tax practice that has considerable litigation expertise as well as being one of the leading firms for advising on income tax, income tax attorney, value added tax and other taxes such as customs law. It frequently represents large foreign corporations in tax and customs litigation before the High Courts as well as representing a variety of corporate clients in numerous matters before tax tribunals. Sadat Khan is sought after for his experience in tax disputes and for his taxation advice on big infrastructure projects. Muhammad Raiz routinely advises companies on a myriad of complicated taxation matters.

Changes in the Income Tax Ordinance 2001

With effect from 1 July 2013, a number of new withholding taxes have been introduced. The examiner does not expect candidates to memorise these rates; however, the examiner does expect candidates to have knowledge of the withholding agents, consequences of non-compliance with the withholding tax provisions and to recognise whether the tax withheld is allowed as a tax credit or is the final tax.

The tax withheld on the transactions discussed below are allowed as a tax credit against the tax liability of a tax payer and are not covered under the final tax regime.