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.
All the BS-18 officers of Inland Revenue Service (IRS), Pakistan Customs Service (PCS) and ex-cadre who are in the promotion zone have been directed by the FBR in an official memorandum to forward their declaration of assets for the; last five years up to June 30, 2019, by May 15, 2020.
FBR sources said that as per promotion rules the officials had been required to submit their asset declaration besides providing performance evaluation reports (PERs).
Assets declaration has not been submitted by a large number of officers, as per the resources.
Initial departmental proceedings would be initiated by the FBRin case of the failure to submit the assets declaration by FBR.
The Government of Pakistanhas introduced a credit risk-sharing facilityto support small and medium-sized businesses across the country.
As per this scheme, small businesses can get benefit from the refinance facility of State Bank of Pakistan by getting loans on simple conditions and a lower rate of interest. The government has specified an amount of 30 billion rupeesfor this purpose.
As per the sayings of the Ministry of Finance,the duration of this scheme is four years.
It is further added by the ministry that the Government would compensate in case any loss is faced by the banks under this scheme. And for compensation purposes, the Government would pay 40% of the actual loan.
According to this scheme, SMOs and Small businesses having sale turnover of up to 2 billion rupees can avail this loan facility from banks. State bank of Pakistan shall be monitoring the implementation of this scheme.
An SRO 353(I)/2020 has been issued by the FBR. As per this SRO, FBR has restricted the powers of tax officials for the attachment of certain moveable properties of defaulters in case of due taxes recovery.
As per the notification, FBRofficials are not allowed to attach a list of assets for recovery. A list of such assets includes necessary wearing apparel, cooking vessels, beds and bedding of defaulter, his wife, and children. Also, in accordance with the religious, any such personal ornament cannot be parted by any woman.
Also, FBR official are restricted from the attachment of assets for recovery including tools of artisans, and in case, the defaulter is an agriculturist,his implements of husbandry, and such cattle and seed grains as are necessary to earn livelihood.
Other assets that FBR officials are not allowed to attach include houses and other buildings(including the material and the sites and the land immediately appurtenant) belonging to any agriculturist.
FBRalso included Books of accounts; a mere right to sue for damages; and any right of personal service is the list of such assets that FBR officials are not allowed to attach.
The amendment to sales tax rules also prohibited the tax officials to attach all compulsory deposits and other sums in or derived from fund to which the Provident Fund Act, 1925, for the time being applies in so far as they are declared by the Act not to be liable to attachment.
Amendments to Companies Act 2017 have been approved by the President to facilitate Startups
For the purpose to provide am enabling regulatory framework and to facilitate startups in Pakistan amendments in Companies Act 2017have been approved by President Dr. Arif Alvi. The Securities and Exchange Commission of Pakistan (SECP) had proposed these amendments to help in promoting and nurturing startups as well as to attract local and international innovators.
In consultation with various external and internal stakeholders including PBC, ICAP, ICMAP, OICCI, and PICG, etc. the Companies Act, 2017, promulgated on May 31, 2017, was reviewed by the SECP. SECP received feedback during the consultation and on this basis, SECP proposed various amendments to promote ease of doing business, encourage startups, improve the protection of minority shareholders and remove some anomalies noted in the provisions of the Act. These amendments have been enacted through Companies (Amendment) Ordinance, 2020 promulgated on April 30, 2020.
To encourage startups, besides adding the definition of startup companies, employees stock options and buyback of shares has been allowed for all companies which were previously allowed to public and listed companies only. These amendments will help address employee retention and reward issues particularly faced by startup companies. Any founding member would be facilitated who needs to exit the company,
In order to facilitate small companies, requirement relating to the payment of subscriptionmoney within 30 days of incorporationby subscriber and filing of auditor certificate has been removed.
With the approval of the Commission, a listed company is allowed to hold an extraordinary general meeting at shorter notice. Further, irrespective of paid-up capital, filing an annual return with the registrar is the requirement forall companies. The Board of directors shall appoint the CEO in all the companies.
A revision has been made in the procedure for handling of unclaimed dividends.Now unpaid dividend account shall be maintained by companies and any markup accrued on such account shall be used by companies for corporate social responsibility initiatives.
Amendments have been introduced to lower threshold for proposing member resolution (from 10% to 5%), mandatory disclosure of the company’s director’s remuneration, and enhanced protection to minority shareholders in transactions involving conflict of interest of a company’s directors. Because of complex valuations, the legal entitlement of properties and requirements of other regulatory compliances the authority to approve a scheme of arrangements by members or creditors has been granted to High Courts. Earlier, the scheme of arrangements of small-sized companies and companies wholly owned by the government was approved by the Commission while the scheme of arrangement of medium-sized, large-sized, and public interest companies was approved by the Court.
A new provision has been inserted to enable review or revision of any order passed by the registrar, Commission or any officer of the Commission to improve the efficiency of the adjudication process. Besides, provisions relating to the mandatory requirement for common seal, real estate companies, and inactive companies have also been omitted.
These amendments besides improving ease of doing business, in general, will also positively impact the country’s position in global rankings.
For the tax year 2020, amnesty from audit against Computerized National Identity card (CNIC) condition has been demanded by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI). The demand has been made in the budget proposals for the fiscal year 2020-2021.
CNIC condition was introduced in the Finance Act 2019, to be implemented on the unregistered sales, but, due to certain reasons, implementation of the condition could not be made in true spirits, said FPCCI.
It was also highlighted by the FPCCI that initial exemption was provided to this condition through legislation in July 2019.
Also, the condition was provided for relaxation from August 2019 to January 2020 because of the agreement between shopkeepers and the FBR.
Afterward, tremendous pressure has been exerted on the markets due to the complete lockdown in the country due to COVID-19 (Coronavirus).
As per the sayings of FPCCI, cash flows problems are being caused by the CNIC condition since its implementation and it will be further intensifying for registered taxpayers during this lockdown situation.
Therefore, FPCCI has requested a general amnesty for CNIC conditions through legislation in the next budget to be provided for the whole tax year 2020 with an effect from August 2019 to June 2020. This has been requested by the FPCCIin order to facilitate the registered Taxpayers.
