Tahseen Rehman & Co. is firm of Chartered Accountants providing high quality audit, accounting, taxation and consultancy services to small and medium size businesses across Pakistan.
TRC philosophy is based upon investing in a tradition of trust, understanding and solid studied solution provision. We at TRC stand firm in our belief that we are a family comprised of our clients and our personnel. By placing the clients’ interests first, they prosper. It is when our clients prosper that TRC prospers.
The team is led by Mr. Tahseen Bukhari who gels the entire spectrum of national and international experience in the domains of Finance, Audit, ERP Implementation, Management, Organization Development, Business Process Outsourcing and Systems Development. He holds Chartered Accountancy certification from the Institute of Chartered Accountants of Pakistan.
Prime minister's package for business community-Speedy clearance of genuine tax refunds
On7th April 2020, the Federal Board of Revenue (FBR) issued a circular (no. 2020/64599-R) to elaborate the Speedy clearance of Genuine tax refunds as the prime minister’s package for the business community. The circular mentioned that certain field formations are processing the claims at their own will and they are not following the queue available in the refund processing system.
It has been reiterated in the circular that all filed formations should be following the queue strictlyand should be processing the claims according to the law and procedure.
In the circular, it was mentioned that all the CCIRs have been requested to monitor the refund process personally, and they should ensure that the sanction is of only genuine refund claims, the process is as per law and the queue is being followed strictly.
Landlords cannot evict tenants during lock down period, said Government of Punjab
On the 10th of April, 2020, the Government of Punjab issued an order (NO.SO (IS-II)-1-1/2004) in light threats imposed by COVID-19.
As the number of cases of Corona Virus is increasing to an alarming level, and is highly dangerous for human health, hence, the government is taking every possible action to contain and counter the spread of COVID-19 on war footings.
According to the Government, there are sufficient pieces of evidence to proceed under Section 144 of the “Code of Criminal Procedure, 1898”. For ensuring public safety, conserving lives, maintaining ease and for the avoidance of chaos in Punjab, this measure to proceed under Section 144 is an immediate, preventive and speedy remedy.
For the safety of tenants and to help them stay safe at homes, the government has ordered in the exercise of powers conferred under Section 144 of the “Code of Criminal Procedure, 1898” to do the following action;
“During the period of lockdown, no landlord shall evict any tenant forcefully, illegally or without due process of law, on account of non-payment/delayed payment of rent”.
The order has an immediate effect for a period of 2 months until further modified.
The order has been given wider publicity by publishing in the official gazette, Daily newspaper and has been broadcasted through Radio Pakistan, Pakistan television, and other TV channels for the general public.
A brief note about difference between Tax Avoidance and Tax Evasion
Tax evasion and tax avoidance are often considered one but in real, both terms are different.
Tax avoidance is the lawful minimization of taxes by the application of provisions of tax lawsand the related requirements of the country. Tax is minimized taking tax rebates and credits.
However, tax evasion is the deliberate dodging of tax by using illegal means.
Tax avoidance is not considered illegal while tax evasion is illegal in all senses.
SBP to provide finance to businesses which do not layoff their employees from April to June 2020
To help employees in their jobs and to incentivize businesses so they do not layoff their employees, a temporary scheme for businesses has been introduced by the State Bank of Pakistan (SBP) according to a statement issued by the SBP on Friday (10-04-2020). Under this scheme, businesses can get loans from the banks as assistance in the situation of COVID-19 pandemic.
Two circulars were issued by the SBP’s Infrastructure, Housing and SME housing department to provide the details of this new scheme named “Refinance Scheme for Payments of Wages and Salaries to the Workers and Employees of Business Concerns”. These circulars were issued to the presidents of all banks and Islamic finance institutions.
The scheme is covering all the employees including contractual, permanent, daily wages and outsourced workers and is available to all businesses across Pakistan through banks.
The scheme will be available for three months from April to June 2020 and will be providing finances for wages and salaries to those businesses which do not layoff their employees for these three months.
Mark-up on such finances will be up to 5% and would be further reduced to 4% for those who are on active taxpayers list.
The full amount would be available for finance to such businesses with salary and wages expense of three months up to Rs200 million; those with expenses greater than Rs200 million and less than Rs500 million would get 75%amount through finance; while those with such expenses greater than Rs500 million would get 50% of amount through this finance.
The scheme has been designed to prefer small businesses, said the SBP.
Any loan processing fee, credit limit fee or prepayment penalties would not be charged by banks for loans under this scheme. In addition, a grace period of six months would be given to borrowers while repayment of the principal amount can be made within two years.
The SBP have asked the banks to provide weekly reports on the scheme including the reasons for any denial of financial requests.
“One of the main benefits of the scheme is that employers that retain workers on their payroll will be able to restore or increase production quickly once the situation normalizes” said SBP. This scheme would help the businesses to maintain liquidity and to make them able to use available financial resources so that they can meet other working capital requirements.
The scheme is not the only measure that has been taken by the SBP to combat the impact of COVID-19 on the economy of Pakistan.
SBP had previously announced the Temporary Economic Refinance Facility (TERF) on March 17 in order to provide support for new investments in the country. Also, SBP had announced relaxation in credit financing for exporters and importers on March 24and also, a relief package for borrowers was issued 2 days later.
In addition to the above-mentioned, hospitals were also allowed by the SBP at the start of April to make advance payments for medical equipment and medicines related to COVID-19
A brief description to differentiate between ATL Surcharge and Fine
Many people encounter difficulties while differentiating between ATL Surcharge and Fine, and they take them both as same. They consider the ATL Surcharge as fine for late filing. But, this is not so. Actually, Rs1000 is paid as an ATL surcharge for the activation of the filling status; however, the fine for late filing is Rs40000 and is collected under section 182. And it’s collection through a separate notice rather than being collected at the time of filling. Fine waiving or reduction is possible through an amendment in law and notification is issued separately for this.
