Ok but its very lengthy syllabus

interview sy pahlay aap NOC k liay apply kar dain aur NOC le kar rakh len aur agar aap NOC nahi lain gay to aap ka past experience count naahi kia jaye ga so its better to take NOC before the interview

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|| The road to success and the road to failure are almost exactly the same||. "Colin R. Davis"

i have not yet received the text from FPSC. Does it mean my form is rejected?
help me out regarding this problem so that i can gird up my loins for the test

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Wisdom comes through suffering...

Qasim Bro.Here is link for the almost 90% syllabus for the inspector Post.
Only one thing is missing Tax reforms/ Administration .
Any one can download easily because it is in winrar format.

https://drive.google.com/file/d/0B3Y...ew?usp=sharing


Best of Luck

No, Its not mean that you are rejected. It is confirmation text. If not received don't worry but keep on your preparation for test. Some candidates received text. when you applied the application successfuly applied message delivered which is a confirmation of successful application and its number save it for future corespondence.

thanks, ziaulwahab. but if i received a text, i would b more focused.
.
anyway, let's see which way the wind blows.

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Wisdom comes through suffering...

Introduction
The constitution empowers the Federal Government to collect taxes on income other than agricultural income, taxes on capital value, customs, excise duties and sales taxes. The Federal Board of Revenue (FBR) and its subordinate departments administer the tax system. Each of the three principal taxes has a different history and different set of issues. For a large number of income tax payers the core of the business process is pre-audit and assessment by a tax official. This process gives considerable discretion to tax officials, with potential for abuse. Moreover, this process is also not tenable as the number of taxpayers increase. The report is focused on a total overhaul of the process and organization of income tax. Sales tax is recent and its process and organization is adjusted to the needs of an expanding tax base. These are based on self-assessment and selective audit. Similarly, in customs the accent is on accelerating and broadening the changes begun in recent years. Before long, Federal excise will be subsumed in sales tax.
During the nineties, despite many changes in the tax regime and introduction of withholding and presumptive taxes, Federal Government tax to GDP ratio has varied narrowly around eleven percent. The tax base has grown but still remains narrow and skewed. The number of income tax filers is around one million. At less than one per cent of the population, it is a lower proportion than in many developing countries.
Pakistan’s fiscal crisis is deep and cannot be easily resolved. Taxes are insufficient for debt service and defense. If the tax to GDP ratio does not increase significantly, Pakistan cannot be governed effectively, essential public services cannot be delivered and high inflation is inevitable.
The Reforms to improve our taxation system need to be focused on human resources, business process and organization, corruption and information management. An effective revenue organization must be comprised of trained and dedicated persons with integrity, transparent processes, a comprehensive information system, and taxpayer education. The paper recommends self-assessment, selective audit, and expansion and upgrading of information management, emphasizes reduction of discretion and direct contact between tax collector and taxpayer.
Pakistan’s Taxation System
Federal taxes in Pakistan like most of the taxation systems in the world are classified into two broad categories, viz., direct and indirect taxes. A broad description regarding the nature of administration of these taxes is explained below:
Direct Taxes
Direct taxes primarily comprise income tax, along with supplementary role of wealth tax. For the purpose of the charge of tax and the computation of total income, all income is classified under the following heads:
• Salaries
• Interest on securities;
• Income from property;
• Income from business or professions
• Capital gains; and
• Income from other sources.

Personal Tax
All individuals, unregistered firms, associations of persons, etc., are liable to tax, at the rates rending from 10 to 35 per cent.
Tax on Companies
All public companies (other than banking companies) incorporated in Pakistan are assessed for tax at corporate rate of 39%. However, the effective rate is likely to differ on account of allowances and exemptions related to industry, location, exports, etc.
Inter-Corporate Dividend Tax
Tax on the dividends received by a public company from a Pakistan company is payable at the rate of 5% and at the rate of 15% in case dividends are received by a foreign company. Inetr-corporate dividends declared or distributed by power generation companies is subject to reduced rate of tax i.e., 7.5%. Other companies are taxed at the rate of 20%. Dividends paid to all non-company shareholders by the companies are subject to with holding tax of 10% which is treated as a full and final discharge of tax liability in respect of this source of income.
Treatment of Dividend Income: Dividend income received as below enjoys tax exemption, provided it does not exceed Rs. 10,000/-.
• Dividend received by non-resident from the state enterprises Mutual Fund set by the Investment Corporation of Pakistan.
• Dividends received from a domestic company out of income earned abroad provided it is engaged abroad exclusively in rendering technical services in accordance with an agreement approved by the Federal Board of Revenue.

Unilateral Relief: A person resident in Pakistan is entitled to a relief in tax on any income earned abroad, if such income has already been subjected to tax outside Pakistan. Proportionate relief is allowed on such income at an average rate of tax in Pakistan or abroad, whichever is lower.
Agreement for avoidance of double taxation: The Government of Pakistan has so far signed agreements to avoid double taxation with 39 countries including almost all the developed countries of the world. These agreements lay down the ceilings on tax rates applicable to different types of income arising in Pakistan. They also lay down some basic principles of taxation which cannot be modified unilaterally.
Customs
Goods imported and exported from Pakistan are liable to rates of Customs duties as prescribed in Pakistan Customs Tariff. Customs duties in the form of import duties and export duties constitute about 37% of the total tax receipts. The rate structure of customs duty is determined by a large number of socio-economic factors. However, the general scheme envisages higher rates on luxury items as well as on less essential goods. The import tariff has been given an industrial bias by keeping the duties on industrial plants and machinery and raw material lower than those on consumer goods.
Federal Excise
Federal Excise duties are leviable on a limited number of goods produced or manufactured, and services provided or rendered in Pakistan. On most of the items Federal Excise duty is charged on the basis of value or retail price. Some items are, however, chargeable to duty on the basis of weight or quantity. Classification of goods is done in accordance with the Harmonized Commodity Description and Coding system which is being used all over the world. All exports are exempted from Federal Excise Duty.
Sales Tax
Sales Tax is levied at various stages of economic activity at the rate of 17 per cent on:
• All goods imported into Pakistan, payable by the importers;
• All supplies made in Pakistan by a registered person in the course of furtherance of any business carried on by him;
• There is an in-built system of input tax adjustment and a registered person can make adjustment of tax paid at earlier stages against
• The tax payable by him on his supplies. Thus the tax paid at any stage does not exceed 15% of the total sales price of the supplies.

Tax Reforms in Pakistan

Executive Summary
Pakistan has one of the lowest tax-to-GDP ratios in Asia and the country faces serious budget deficits despite levying high indirect taxes which are regressive in nature and impose higher burden on the low income groups disproportionately. This report explores various problems and their reasons pertaining to tax at federal level in Pakistan and it offers recommendations for their solution.
In the existing situation, several problems are identified in the report that result in low tax collection including SROs, inefficient direct taxes, administrative issues of FBR, low tax incentives for taxpayers, trust deficit in tax collectors, and others.
This report recommends increasing incentives for taxpayers and imposing strict penalties for tax evasion. Top management of FBR should include honest and competent professionals with regular training programs. Devolution of tax collection and its monitoring by multiple bodies to ensure honesty and professionalism is also recommended to make the system more efficient. The relations between tax officials and taxpayers also need to be improved significantly. Tax payment should be convenient and simple, for this online payment of tax is recommended alongside promoting use of eTax. Tax payment certificates to be issued to taxpayers to avail benefits of tax payment as well as evidence of tax payment. Tax should be made fairer, value added tax should be promoted and GST should be lowered instead sales tax should be increased on luxury items, proportion of indirect taxes should be lowered, service sector’s contribution in tax is disproportionately low and should be increased, corporate taxes should be lowered, tax base should be increased and tax slab limits should increase and be tied to CPI. Gross annual rental values should be revised. SROs should be reduced and their issuance should involve rigorous scrutiny process. Special tax evasion courts should be established to facilitate legal problems between tax department and tax payers. Cheque guarantee system by banks should be promoted for proper documentation of the economy as well as fixed tax liability to be imposed on non-taxpayers which should be proportionately high rate of tax, for small scale firms a low but fixed tax should be imposed where tax accounting difficulties persist. Information sharing between government departments should be encouraged for efficient identification and collection of taxes. Awareness of tax payment, calculation and payment process as well as transparency measures is imperative, details of receipts and expenditures of taxes should be made public to reduce the trust deficit.
This research was conducted using both primary data in the form of interviews with relevant officials and secondary research in the form of research articles and government publications. The topic was divided into subtopics and a group of 2-3 members was given a subtopic each. Their findings were presented to the committee and then compiled. The committee is thankful to Mr. M. Ali Kemal, a research economist at PIDE , Mrs. Ayesha Noor, Secretary HR, FBR Headquarters and Mr. Rashid Mehmood, Assistant Manager Corporate Compliance & Reporting, Ernest & Young Pakistan.
Tax in Pakistan
Federal taxes are imposed in Pakistan through the 4th Schedule of the Federal Legislative List of the Constitution of Pakistan. Major federal taxes include Income tax, Sales tax, Custom duties and Excise duties.
Direct Taxes:
a. Income Tax: It is levied under the “Income tax Ordinance 2001”.
Indirect Taxes:
b. Sales Tax: It is levied under the “Sales Tax Act 1990”
c. Custom Duties: It is levied under the Customs Act 1969”
d. Excise Duties: It is levied under the “Federal Excise Act 2005”

In the article Tax Reforms in Pakistan (1990-2010) the author (Sheikh, p. 2010) discusses the importance of tax and suggests that tax is the major source of revenue for any country. They also point out the main problems in the taxation system of Pakistan majorly being a narrow tax base for the low tax to gdp ratio. For a developing country like Pakistan to successfully meet its recurring obligations and invest in development, it should ideally have a tax to GDP ratio of around 20% (Ahmad, 2010). The slow growth in collection of taxes in Pakistan in consecutive governments suggest extensive tax reforms to be under taken in tax policy and tax administration (Roubina, 2008).
The Government of (Pakistan, 1986) in the final report of National Taxation Reform Commission suggests tax aversion as one of the major source of leakage in system due to vague policy and weak implementation. In Pakistan we are heavily reliant on in-direct taxes like General Sales Tax (GST) which is easy to manipulate and should be reformed to a Value Added Tax (VAT) which has been successful in similar developing countries (Ahmad, 2010).
(SDPI, 2013) Sustainable Development Policy Institute reported very few Pakistanis pay income taxes. Out of a total work force of 58 million less than 2 million are registered taxpayers and last year only 0.7 million people actually paid income tax. When the Government finds it difficult to collect direct taxes like income tax than it resorts to rely on the easy way out of in-direct taxes.
(Waseem, 2013) discusses reduction in corporate tax rate to encourage partnership businesses to move towards limited companies which is generally avoided by small to medium scale businesses to as they require detailed financial audits, compliance and Security Exchange Commission regulations.
Tax is the major source of income for any country to funds its development. While direct taxes are progressive; in-direct taxes are regressive as applied uniformly. It is clearly visible from the data above that we have a heavy reliance on in-direct taxes whereas the case should be vice versa.
Consecutive governments have failed to increase tax to GDP ratio and effectively develop measuring mechanism to gauge Income Tax. For the fiscal year 2012-2013 FBR was not able to meet its target and achieved only 3 percent increase in their tax collection.
The single largest contributor of direct taxation in Pakistan is Income tax. Unfortunately, it has been difficult to tap the full potential of this tax due to leakages in our tax system and lack of FBR’s ability to match a person’s income with his tax receipts.
Of the three major in-direct taxes applied by the Federation, the largest contributor is Sales Tax. We would have to move towards a value added tax (VAT) or Reformed General Sales Tax (RGST). VAT will ensure that the tax is applied at input and output rather than just taxing the output in the case of General Sales Tax. This way it will be easier to gradually tax the value addition rather than applying a uniform tax at the output and final stage. It should be applied to both local and imported products.
The corporate income tax rate is 35% for Pakistan which is on a higher side when compared to other emerging economies of the world especially SAARC countries. It is proposed to revise the rate of 35% to 25%. The reduction in tax rate will encourage corporatization, a concept Pakistan is far behind its neighboring India and will motivate business to expand.
Proposed Tax Reforms:
 Focus on progressive taxation instead of regressive taxation.
 Focus on direct taxation rather than in-direct taxes.
 It is suggested to develop bench marks for different sizes of small sized business and introduce a fixed tax. It is difficult to assess small business where many times informal book keeping is being done. So having a fixed tax liability will not only raise tax collection but will also encourage small businesses to promote as credible tax payers.
 Majority of direct tax is collected from the industry where as service and agriculture sector do not contribute as per their share in the GDP. As agriculture income tax is a provincial subject after the 18th amendment in the constitution of Pakistan. The federation should consider a stronger focus on matching the tax collection from the service sector as per its contribution in the GDP. The Telecom companies are the only major contributor of tax in service sector.
 Tax payers need to be encouraged by schemes where the tax payer is benefited and appreciated for his due contribution. Unfortunately the tax payer already in the tax net is neither appreciated but rather feels harassed due to the behavior of tax collection agency.
 Stronger penalties need to set for tax evaders to discourage them from this practice.
 The most comprehensive database in the country is operated by NADRA. Hence, it is proposed to make CNIC number into tax number for individuals and centralizes different available databases for example data of Capital Development Authority (CDA) and Motor Registration Department so FBR could track non-filing high income individuals.
 The law of the land dictates that it is mandatory for every person owning a vehicle above 1000cc to file a tax return. Enforcement of this needs to more rigorous.
 Mr. M. Ali Kemal, a research economist at PIDE wrote in his article “Monetizing Perks” published in (The News, 2014) that we do not need more taxes but need to increase our tax base/net.
 During research Mr. Rashid Mehmood, Assistant Manager Corporate Compliance & Reporting, Ernest & Young Pakistan recommended the following points for this report:
o Income Tax Ordinance is ambiguous. The ordinance needs to be revised to ensure effective compliance implementation.
o Filing an income tax return is very complex for a layman. The filing needs to be simplified and welcoming.
o It is generally difficult to collect tax on voluntary basis. Hence it is suggested to ensure tax filing for every professional.
o Bridge trust gap between the Tax collector and Tax payer.
Mr. Mehmood was of the opinion that FBR has very limited data hence the narrow tax net. More sources of data need to be introduced for effective tracking of every taxable individual.
Tax Evasion
Tax evasion is the failure of individuals or entities to comply with their tax obligations deliberately. It is a phenomenon that has become of crucial importance in Pakistan. According to a 2008 study of State Bank of Pakistan curbing tax evasion in Pakistan would lead to the generation of revenue equivalent to 2.5% of GDP.
Recommendations
 Lower corporate tax rates so that they match rates of other developing countries, increase tax revenue from increasing tax base instead of increasing tax rates.
 In the case of income tax, tax base should be widened and tax slab should be increased and made adjustable to CPI annually according to an agreed upon formula.
 Fixed taxes such as turnover tax should be levied in the situation when proper documentation of income is not made available by any company, this rate should be higher than the tax rate to be charged otherwise.
 There should be incentives for paying taxes such as priority in public services, in government contracts, etc.
 Details of tax receipts and expenditure should be made available and debated upon for transparency purposes.
 High income services such as credit cards, travel agents, consultancies, etc. should be levied higher taxes to reduce general sales tax to make tax more progressive.
 Tax base could be increased by information sharing between different government departments such as electricity connections for commercial or industrial units should be matched with filing of tax returns.
 Tax should be based on value addition, on input as well as output so that the tax rate at output position is reduced and it becomes more progressive.
 Revise gross annual rental values of properties, very often these values are extremely outdated.
 Tax should be imposed on assets at 1% of total asset value exceed a certain level of asset range.
 To avoid tax collector corruptions tax payment certificates be issued to taxpayers by an independent audit body.
 Special courts for tax evasion should be established that deliver verdict within a year’s time after filing of the case.
 Awareness of tax payment importance, its payment procedure and its transparency mechanisms should be made widespread.
 It should be ensured that the top management team of FBR should comprise of both honest as well as competent members.
 Online transfer of taxes from all banks should be permitted to ease the payment of taxes.
 Bank cheque guarantee system should be introduced as in many developed countries, banks issue customers cheque books in accordance with their transactions and any cheque issued from that account should be guaranteed by banks so the documenting of the economy becomes easy and switching from cash transactions to bank based transactions becomes easier, with the effect of promoting documentation in the economy, cash transactions should be penalized.
 Devolution of tax collection and expenditure powers to municipal governments, with fixed proportions for provincial and federal levels would promote transparency as well as ease in spotting of tax evaders.
 Monitoring of these municipal tax authorities by multiple authorities would make bribery an expensive option for taxpayers and promote tax payments.
These recommendations cover all the five areas reasons for tax evasion and are likely to significantly reduce the tax evasion problem with effective implementation.

Low Tax to GDP Ratio
Exempted or zero-rated tax sectors: The eminent reason behind the low tax to GDP ratio in Pakistan is the tax exemption given to powerful political figures, capitalists and various industrial sectors. “ The exemptions now amount to Rs477.1bn- nearly 2pc of the country’s gross domestic product(GDP) in fiscal year 2013-14- compared to Rs239.535bn in the last year, an increase of Rs237.57bn”(M.Khan 2014). The major tax exemptions include the income tax exemption, sales tax exemption and custom tax exemptions. “An amount of Rs96.634bn was lost due to exemption in income tax in 2013-14” (M.Khan 2014), whereas, Sales tax exemptions and Custom tax exemptions have increased by Rs211.564bn and Rs131.451bn, respectively. These exemptions have decreased the revenue by Rs.200bn and the tax to GDP ratio to 8.5 percent.

Structural Flaws in FBR
A) - Incompetent Tax Officers: Work efficiency of the tax officers is a matter of significant importance in reference to the narrow tax base. In FBR, over the course of time, it has been witnessed that many officers were inducted without the relevant background or expertise. “The system through which the non-officers are inducted is highly politicized” (Inam, 2014 P.112) and “current training and development practices do not expose the staff to best practices in tax administration” (Inam, 2014 P.112). There exists a structural flaw in the working of FBR, where the competent employee has a lesser chance to get promoted and “the inadequate compensation system fails to attract and retain highly qualified professionals” (Inam, 2014 P.112).
B) - Lack of Proper Database: Despite the fact that FBR has introduced a mechanized system, there still exists the need to improve the database, so that tax evasions and frauds could be tracked down easily..
Exemption of Agricultural Sector: Agricultural sector contributes nearly 22 percent to Pakistan’s GDP, whereas, its contribution to taxes is no more than 2.5 percent. This overdue exemption from tax has adversely affected the economy of Pakistan since long. There is no proper implementation of agricultural income tax, the main reason of which is the on-going political power enjoyed by the feudal lords. “ The agro lobby has allegedly prevented the Federal Government from bringing about any change in the Constitution, while also restraining provincial governments from utilizing their authority effectively to impose AIT” (S.Khan).

Trade Liberalization: This involves the removal or reduction of the restrictions or barriers on the free exchange of goods between the nations- which includes both; the tariff and non-tariff obstacles. By reduction of these tariffs, not only the local market is affected but it also negatively affects the trade revenues that could be earned. The idea of trade liberalization is viable for countries which have other sources to recover these revenues from. “For low income countries, in contrast, a steady reduction in trade tax revenues over the last twenty years has been accompanied by a reduction in total revenues” (Baunsgaard, 2014 P.3), and recovery of these revenues from other sources is uncertain, so despite the fact that trade contributes towards the economic growth of a country, trade liberalization beyond a certain limit, decreases the trade taxes which remains a huge barrier in the economic growth of a country.
Trust Deficit- Low tax Filings: The existence of trust deficit among the public is one of the major reasons behind the low tax to GDP ratio. People have a general conception that the state is unable to manage their taxes well, so they are not motivated to give taxes. In nations like Sweden, “public trust is supported by tax procedures and transparency on tax collection, tax invoices can be received even on cell phones” (Sindhu, 2014 P.17). These measures, if taken in Pakistan, can contribute towards increasing the tax base and enhancing the tax to GDP ratio. The reflection of this trust deficit can be seen in the fact that contribution of income tax “to total tax revenue stands at 28 percent” (Inam, 2014 P.101), whereas, the “number of active tax-filers in Pakistan is about 1.05 million, which is 0.07 percent of the population” (Inam, 2014 P.102).
Lack of Tax Facilitation Policies: In this context, we could take the example of Sri Lanka, where, “for the facilitation of the tax payers, tax is collected in five installments, while in Pakistan, under the law, tax payers have to pay the tax in lump sum”.(Sindhu, 2014 P.13). Moreover, there are no incentives associated with taxes in Pakistan, unlike Sri Lanka, “where there is noticeable provision of incentives in the form of discounts and privilege cards”. (Sindhu, 2014 P.13 ). This could be an eminent initiative to increase the tax to GDP ratio.
Flawed Taxation Policy and Lack of Enforcement Mechanism: In Pakistan, rich are exempted from the tax net due to which “government is constrained to pounce upon the poor with regressive taxes- sales tax and presumptive taxes under the income tax code” (Sindhu, 2014 P.21). Whereas, the “countries with high tax to GDP ratio, follow a policy with focus on progressive taxes” (Sindhu, 2014 P.21). To increase the tax to GDP ratio, the government should focus on progressive taxes, which would also deal with the problem of income inequality.
In Pakistan, the mechanism of tax enforcement is flawed, which gives exemption to ruling class, creating economic and social disparity among the citizens. Considering the example of India, the foremost thing which they did while reforming taxation system was to ensure the strong enforcement of taxes and make sure that nobody is exempted from the tax net. In Pakistan, irrespective of the fact that there are policies related to the tax system, the major issue remains the enforcement of these policies.
Recommendations
 Improvement in tax administrative structure – qualified and competent tax officers
 Transparency in recruitment process
 Simplification of tax filing processes.
 Education of tax payers.
 GST to VAT transition
 Expansion of e-taxation system to replace manual tax systems– Increases efficiency
 Removal of Trust Deficit-Confidence building measures to encourage taxation (targeting the health and education sector to build confidence among people that their taxes are not being wasted, rather spent on development projects)
 Improving governance.
 Autonomy of Tax administration
 Advance training program for tax officials

eligibility criteria is graduation but most of the syllabus is touching my CA Income and sales taxation syllabus

STRANGE

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"Nothing is impossible, the word itself says 'I'm possible'!

FPSC believes our graduation structure is good enough to attempt this syllabus.