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Last update: Sat, 03 Dec 2016 05am

Taxation

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The Directorate of Intelligence & Investigation Inland Revenue Islamabad of the Federal Board of Revenue (FBR) has started investigations into the suspicious purchases of dollars from the market by undeclared sources of income. Sources said that the investigation targets those individuals who are buying dollars in bulk from market and taking them abroad. This is the first of its kind of major enforcement action against the buyers of dollars purchased form undeclared sources of income. The action also reflects the major enforcement measures against those where declared income is not matching with hefty purchases of foreign currencies.
The Securities and Exchange Commission of Pakistan (SECP) has decided to grant a general relaxation to all listed companies from the requirement of payment of cash dividend through electronic mode directly into the bank accounts of the shareholders up to March 31, 2017.
The federal government has reportedly deprived the provinces of billions of rupee revenue by increasing General Sales Tax (GST) on industrial sector gas by 96 per cent, instead of increasing Excise Duty which is exclusively the right of the provinces. The Economic Co-ordination Committee (ECC) of the Cabinet in its meeting held on November 25, 2016 approved a reduction in gas sale prices for the industry by Rs 200 per MMTBU to Rs 400 per MMBTU from Rs 600 per MMTBU.
Federal Board of Revenue (FBR) has attached bank accounts of District Municipal Corporation (DMC) to recover tax dues amounting to over Rs 100 million. According to FBR sources, the Regional Tax Office (RTO)-III has raised a tax demand of over Rs 100 million against DMCs and issued an order under section 161 of Income Tax Ordinance 2001. Later, the tax department against the non-compliance has frozen the bank accounts of DMCs under section 140 of Income Tax Ordinance, 2001 for tax recovery.
Fourteen former executives of the Wendel investment company will face trial for tax fraud while US bank J.P. Morgan Chase is to be pursued for complicity, legal sources told AFP on Friday. The former head of Wendel, Jean-Bernard Lafonta, and Ernest-Antoine Seilliere, the former head of the main French employer's association, are among those to be tried, legal sources said.
Ireland collected 1.8 percent more tax than expected in the year to November, the Finance Ministry said on Friday, putting it closer to the target of cutting its budget deficit below one percent of GDP while funding extra spending. Ireland is relying on its year-end tax take being 2 percent higher than it had forecast at the beginning of the year to cut its budget deficit to 0.9 percent of gross domestic product from 2.3 percent last year.
China has imposed an extra 10 percent tax on ultra high-end cars costing over 1.3 million yuan ($190,000) such as Lamborghinis and Ferraris, the government said, the latest step in a wide crackdown on conspicuous luxury consumption. Under President Xi Jinping the Communist Party has overseen a sprawling campaign against graft and encouraged thrift among the country's political and economic elites, targeting showy displays of wealth. The new tax took effect Thursday and was intended to "guide rational consumption" and promote energy-efficient vehicles, the finance ministry said in a statement late Wednesday.