Canis Rufus

24/09/2016

Thank you very much for joining us in today's training and making it a success. We would also like to welcome all of you to the CETEM - Center of Excellence in Technology & Engineering Management - CETEM MEMBER's FAMILY.
We would specially like to Thank, Lt. Col. Fuad Hanif (Retd.), MD of The Fortune Pakistan Magazine to bless us with his presence and supporting this venture.

19/07/2016

To file your tax returns for the year 2016, write to us at: [email protected] or call us @ 032 000 000 39

19/07/2016

To file your tax returns for the year 2016, write to us at: [email protected] or call us @ 032 000 000 39

Tax Rates for 2015 for Salaried persons in Pakistan FBR

S.No. Taxable Income Rate of tax
1:
When the taxable Rs.400,000 0%
income does not
exceed

2:
When the taxable Rs.400,000 5% of the amount income exceeds but does not exceeding
exceed Rs.750,000 Rs.400,000

3:
Where the taxable Rs.750,000 but Rs.17,500 + 10%
income exceeds does not of the Rs.17,500
exceed + 10% of the
Rs.1,400,000 amount
exceeding
Rs.750,000

4:
Where the taxable Rs.1,400,000 but Rs.82,500 +
income exceeds does not exceed 12.5% of the
Rs.1,500,000 amount
exceeding
Rs.1,400,000

5:
Where the taxable Rs.1,500,000 but Rs.95,000
income exceeds does not exceed + 15% of
Rs.1,800,000 the amount
exceeding
Rs.1,500,000

6:
Where the taxable Rs.1,800,000 but Rs.140,000
income exceeds does not exceed + 17.5% of
Rs.2,500,000 the amount
exceeding
Rs.1,800,000

7:
Where the taxable Rs.2,500,000 but Rs.262,500
income exceeds does not exceed + 20% of the
Rs.3,000,000 amount
exceeding
Rs.2,500,000
8:
Where the taxable Rs.3,000,000 but Rs.362,500
income exceeds does not exceed + 22.5% of
Rs.3,500,000 the amount
exceeding
Rs.3,000,000
9:
Where the taxable Rs.3,500,000 but Rs.475,000
income exceeds does not exceed + 25% of the
Rs.4,000,000 amount
exceeding
Rs.3,500,000

10:
Where the taxable Rs.4,000,000 but Rs.600,000
income exceeds does not exceed + 27.5% of
Rs.7,000,000 the amount
exceeding
Rs.4,000,000
11:
Where the taxable Rs.7,000,000 Rs.1,425,000
income exceeds + 30% of the
amount
exceeding
Rs.7,000,000

19/06/2016

During a robbery, the bank robber shouted to everyone in the bank: “Don’t move. The money belongs to the State. Your life belongs to you.” Everyone in the bank laid down quietly. This is called “Mind Changing Concept” Changing the conventional way of thinking. When a lady lay on the table provocatively, the robber shouted at her: “Please be civilized! This is a robbery and not a rape!” This is called “Being Professional” Focus only on what you are trained to do! When the bank robbers returned home, the younger robber (MBA-trained) told the older robber (who has only completed Year 6 in primary school): “Big brother, let’s count how much we got.” The older robber rebutted and said: “You are very stupid. There is so much money it will take us a long time to count. Tonight, the TV news will tell us how much we robbed from the bank!” This is called “Experience.” Nowadays, experience is more important than paper qualifications! After the robbers had left, the bank manager told the bank supervisor to call the police quickly. But the supervisor said to him: “Wait! Let us take out $10 million from the bank for ourselves and add it to the $70 million that we have previously embezzled from the bank”. This is called “Swim with the tide.” Converting an unfavorable situation to your advantage!
The supervisor says: “It will be good if there is a robbery every month.” This is called “Killing Boredom.” Personal Happiness is more important than your job. The next day, the TV news reported that $100 million was taken from the bank. The robbers counted and counted and counted, but they could only count $20 million. The robbers were very angry and complained: “We risked our lives and only took $20 million. The bank manager took $80 million with a snap of his fingers. It looks like it is better to be educated than to be a thief!” This is called “Knowledge is worth as much as gold!”
The bank manager was smiling and happy because his losses in the share market are now covered by this robbery.This is called “Seizing the opportunity.” Daring to take risks! So who are the real robbers here?

19/06/2016

HOW TO BECOME RICH IN PAKISTAN – PART 1

By ARSHAD SHARIF

Making big money in Pakistan is not difficult. In fact, it is quite easy. The problem of making money is only for those who think small. Thinking small like making two ends meet, like having the dream of educating children or providing a roof for the family. If you have such a dream, you are in the majority of ordinary Pakistanis who would like to think of themselves as honourable, honest and hard working. And if you are reading this, chances are that you are not amongst the unlucky 70 million (seventy million) Pakistanis who are living below the poverty line on less than a dollar a day, a mere Rs85 as per the current exchange rate of the mighty dollar. If you are happy living with ordinary dreams, do not read further because it would cause heart ache and ulcers to know how people in Pakistan are making big money.

It’s a totally different breed and class of Pakistanis who think big like having latest BMWs, Mercedes, Porsche, Ferrari, Bentley, Audi, Rolls-Royce Phantom, Land Cruisers, personal jets and making new companies. Making new companies and opening off-shore bank accounts in Cayman Islands and suchlike places is essential part of such thinking big, a first step to getting rich. Unless one can dream big, it is not possible to take the first steps in the direction of making big money.

But thinking big is not enough especially once it comes to making big money in Pakistan. Big money means really big money. Outrageous money in which there are so many digits that you cannot count. Big money in the sense that if you start counting thousand rupee notes, you spend days on end to count your money. Many in Pakistan make that kind of money. The ones, many of us like to label as, filthy rich. Have you wondered how many days it takes to count only a billion rupees in denomination of one thousand rupee notes? Well my calculations are not good enough. But, if you want to count, if you get that rich, let me give you a formula so no one can short change you. You should be sure that you have a million one thousand rupee notes. If you take a second to count one note of one thousand rupee denomination, then you will spend a million seconds to count your first billion. That amounts to about sixteen thousand six hundred and sixty six minutes or two hundred and seventy eight hours or almost eleven and half days if you do not take rest for a single second even to take a leak. Unless one knows what a billion means in terms of time required to count it, how would one make that kind of money? Imagine counting your thousand rupee notes for eleven and a half days, non-stop.

Now that you know how much time it takes to count a billion, stop here. You are doing something wrong. Billionaires do not count their money. So if you thought about counting your billion, you cannot be a billionaire because there is something fundamentally wrong with your thought process. Billionaires do not waste their time counting money. The auto cash counting machines in banks do the job of counting big money. And, mostly such big transactions do not take place in cash.
So the first step is to think big but the thought processshould be in the right direction. It should not be to think about wasting timeto count a billion. Rather, the rich spend quality time thinking how tomultiply their money.

As I was telling you how to be rich in Pakistan, my friend Tahir Hussain, working in an oil and gas company in Qatar, called and asked what are you doing? When I told him I was still typing away on my computer at around midnight, he said, “I go home at around 3 pm and am already a multimillionaire.” He continued, “If you keep thinking about how to be rich, you will keep on thinking and not be rich.”
The rich people put their thoughts into action.

Since you have started thinking about how to get rich, and want to be rich, will let you know next time how some of the most influential people got rich in Pakistan.
Ciao

13/06/2016

13/06/2016

Register your company now !!! We know How to get it done in no time.....

To be an owner of your company call us or sms us
@ 00 92 32 000 000 39

or email us at: [email protected]

12/06/2016

Common advice for accelerators.

Every place is different, but I found very common patterns in the basic advice these types of groups needed to hear. Below, I’ll outline an ideal accelerator, why Y Combinator and TechStars had big news this week, why we should ignore signaling problems, and how to fix mentorship.

Don’t try to copy Silicon Valley. You can’t. Or even worse, don’t copy what you think is happening in SF based on movies and blog posts — we may seem transparent, but trust me, it’s mostly for show and the real info is beneath the surface or hard to write in tweets. Learn from SF in the right ways. Plus, you shouldn’t want to copy — SF is one specialized ecosystem that is great at some things and really bad at other things. Make your own thing. For example, I liked how The Family in Paris is embracing it, making their community very “French” because to do otherwise would fail. Don’t make silly names like “Silicon ______”.

Recognize there is a huge difference between venture scale (“Unicorn” path) companies and other forms of entrepreneurship. Most groups treat everything like it’s either Instagram (high risk, technical leverage, huge reward, Silicon Valley style) or a local Chinese restaurant, with nothing in between. But there are many shades of gray in the middle — for example, I love what Bryce is doing with Indie.vc by investing in companies that might be successful but not acquired for billions of dollars. If you aren’t aware of this continuum, you blindly make disastrous square-peg round-hole mistakes.

Accelerators are modern universities. The traditional model of “We’re an accelerator! Apply to us, we’ll pick the top 10, then 90 days later you’ll launch and get funding!” is broken. The true purpose of an accelerator is to teach the method of entrepreneurship, so that on graduation day the founders have the knowledge and tools to keep improving. Funding, launching, weekly growth, etc is all a bonus. Governments should back these groups since they are picking up the slack of other public schools.

Garbage in, garbage out. Picking only the top X applications you passively attracted is bad. If your program pushes people to the Unicorn path (the goal is to raise venture capital), but you invest in companies that aren’t a fit (see #2) or are the 300th version of Tinder, nothing you do will routinely result in success. If you only find 7 good companies for this batch, then only take 7. I’d rather err on the side of giving someone new a chance — but on the other hand, there is a lot of junk in most accelerator programs. Which leads us to…

Community building, farming, and hunting are crucial. Especially in ecosystems outside of San Francisco, the purpose of events, branding, and parties is to farm dealflow by bringing high potential entrepreneurs out of the shadows. You should be a magnet for possible founders. You also must go out and hunt, just like professional sports scouts.

Drastically improve the mentorship founders receive. Mentors must be relevantly qualified (‘been there, done that’), appropriately timed in the lifecycle (don’t push VCs on founders in their third week), quality over quantity, and be Socratic rather than prescriptive. Teach your mentors what you want from them and hold them accountable.

Avoid event, meeting, noise, and mentorship fatigue. Most accelerators push way, way too many events, meetings, and mentoring sessions on their founders. And the big coworking pits can be a disaster of noise and distractions — allow founders space to reflect and work. Let companies develop their own cultures / cults as the team grows past the founders.

Ignore the ‘signaling problem’. Love everyone, but invest in winners. Investing more money into your promising companies is not only fine, but likely a prerequisite to financial success for your accelerator. I think “grading” or similar meritocracy systems are needed. Founders need to know they’re being judged. “Everyone gets a trophy” does not work here.

One of the biggest not-frequently-talked-about values of accelerators is to recycle talent. I’ve heard YC founders say this was their biggest value inside YC. You should be a mega match maker of talent. Startup idea with a good team isn’t getting traction? Help them absorb into the winners. Back solid founders again after a worthy failure.

Government’s #1 job is to push meaningful change or get the hell out of the way. Lip-service policy deserves a punch in the mouth. The best thing government can do is to make things easier for entrepreneurs: easy visas, no taxes and tax breaks, ability to hire/fire easily, access to free work space, deferred student loans, no regulation on things like drones or stem cells, heavy investment in STEM education (and then keep graduates in the damn country!), etc. Pass “startup exemptions” to laws that otherwise create burdens. Have “startup fast tracks” for immigration, entity formation, etc. Create straight forward financial incentives for early stage investors. Create straight forward incentives for financial exits — without people making money, the circle of life can’t happen and all your efforts will fizzle out. Investors will fly anywhere in the world if there is a track record of venture-scale returns.

Traditional universities: entrepreneurship is learned by doing, not by reading about outdated business plans. If a student is doing entrepreneurship, give them the right help, remove obstacles, and let it happen. I went to one of the “top” entrepreneurship universities in the US on an entrepreneurship scholarship, yet while I was busy building an actual business my freshman year of school, they still required me to waste time taking courses like Entrepreneurship 101 where we wrote essays on “what is entrepreneurship?” (Thankfully, myself and a few other people helped revamp the program, creating the #1 university course for entrepreneurship in the country, ‘Spine Sweat’, Indiana U.)

11/06/2016

Need Help with Social Media presence and Website?
Contact us Now: 00 92 32 000 000 39 or
email us at: [email protected]

Every Page on Facebook wants everything they post shown to everyone. But people only read a limited amount of News Feed per day. There simply isn't room for..

11/06/2016

Improving Startup Accelerators
(Or Anything Helping Entrepreneurs)

Most startup community things suck (incubators, accelerators, schools, government initiatives, hackathons, conferences, etc). All are well intended but most don’t deliver real value, except for cash. Some do more harm than good.
In almost every country, leaders are trying to foster innovative entrepreneurship. But with a lack of blueprints or resources to ask for help, many of these initiatives are failing due to common, avoidable reasons.
Here are some straight forward ways you can improve — which we must, because much like the development of farming or written word, entrepreneurship is a crucial force for improving our world.

Source Says:
After the company I founded in Silicon Valley was acquired (and realizing I needed burnout recovery), I sold all my possessions and started traveling the world in a carry on backpack.
Along the way I mentored over 1,000 founders in 25+ countries and worked with governments, accelerators, universities, investors, and NGOs to help them get better at their mission: to see more successful entrepreneurs in more places creating more things.
I’m thankful that I’ve seen first hand not only the spirit of entrepreneurship in every corner of the globe (even North Korea, of all places), but that meaningful change can and is being made through the advice in this post and the dedicated efforts of local community leaders. I hope this helps you in your efforts, wherever you are!
Accelerator: I use this as a catch all label for any of these groups. Because in one way or another they are trying to accelerate entrepreneurship. Nitpicking nomenclature (accelerators vs incubators etc) is silly.

11/06/2016

WHAT IS A SOLE TRADER?

A sole proprietorship also known as a sole trader/sole owner, or simply proprietorship is a type of business entity which is owned and run by one individual and where there is no legal distinction between the owner and the business. All profits and all losses accrue to the sole owner (proprietor / trader). All assets of the business are owned by the owner (proprietor / Sole trader)and all debts of the business are his/her debts and he/she must pay them from their personal resources. This means that the owner has unlimited liability. It is a “sole” proprietorship in the sense that the owner has no partners (partnership).

This is the most straightforward structure for a business. Basically it means the business decisions are being made by one person. Of course, it doesn’t necessarily mean that the business has only one worker. The sole trader can employ others to do any or all of the work in the business.

A sole proprietor may do business with a trade name other than his or her legal name. This also allows the proprietor to open a business account with banking institutions. Such as one of our very own, that offers priority Banking; Askari Bank, Range Rd, Branch, Rwp.

WHAT ARE THE ADVANTAGES OF FORMING A SOLE PROPRIETORSHIP IN PAKISTAN?

The main advantages of a sole proprietorship (sole ownership) are that:

Sole Proprietorships are easy to start up
Sole Proprietorship are subject to fewer regulations relative to other types of businesses,
the Sole Proprietorship owner has full autonomy with regard to business decisions,
Sole Proprietorship are easy to discontinue as well.
Another significant advantage is that one takes all the profits of the business. This is the main reason that most businesses are of this type.
A sole proprietor usually has a quick decision process and doesn’t have any opposition when making a decision as he / she has total control of his or her business. All profits and losses accrue to the owner.
The owner does not have the tension regarding conflicts among the partners as there are no partners. Also it’s easy to set up, with having little paper work to fill in and little money spent on setting up, this is one of the easiest types of business to start.


WHY THIS TYPE OF BUSINESS?

This type of structure is ideal if the business is not complicated, especially if it does not require a great deal of outside capital.
There isn’t much paperwork in establishing this type of structure.
You don’t want to use your own name and would like to create a brand name. (See also Trademark registrations under intellectual property).
There are less stringent reporting obligations compared with other structures.
Sole Owner/Trader is entitled to all the profits and the ownership of assets.


Sole proprietorship’s are relatively straightforward to wind up.


DOES WORKING AS A SOLE PROPRIETORSHIP HAS ANY DRAWBACKS?

There are a number of disadvantages because of which such forms are finally transferred to better structures such as partnerships and limited liability companies which include:

Sole Owner/Trader is personally liable for all debts.
Personal property may be vulnerable for debts, other business liabilities and/or revenue department payments.
Large sums of capital are less likely to be available to a Sole Owner/Trader , and Sole Owner/Trader may have to rely more on overdrafts and personal savings. Thus increasing his or her cost of borrowing and less rate of return.
A business may require enormous investments of time without the normal employee recreation leave and other benefits. Sole Owner/Trader being the only beneficiary is also on the other hand the only person standing to bear the losses.
There may be issues of continuity of business in the event of death or illness.
A business organized as a sole trader will likely have a hard time raising capital since it has to make up for all the business’s funds. The owner of the business has unlimited liability as he/her is responsible for the business’s debts because he/she has control over the business.
A disadvantage of a sole proprietorship is that as a business becomes successful, the risks accompanying the business tend to grow. To minimize those risks, a sole proprietor has the option of forming a corporation, or, a partnership to mitigate such risks.
Sole Owner/Trader may have only one specialist skill therefore it may hamper diversification of the business.
Sole Owner/Trader may have the investment but lack the time and resources to look completely into the management of the business.

ARE THERE WAYS OF LIMITING THE LIABILITY OF BUSINESS, SOMEHOW?

Yes, Talk to our attorneys, lawyers and accountants working with Canis Rufus specializing in business formation about the legal ownership of personal assets or the use of trusts to limit liability and reduce tax burden.

For instance, the family home may not be exposed if it is in the name of your spouse — you must get legal advice before you do this, because there are other consequences, especially if the spouse dies or you divorce. Also, you may not be able to do this if your sole purpose is to avoid a creditor.

HOW IS A SOLE OWNER/TRADER TAXED IN PAKISTAN

A sole trader pays tax in their own right, as part of their personal income tax return at the personal rate of income tax.

A sole proprietorship is not a corporation; it does not pay corporate taxes, but rather the person who organized the business pays self employment taxes on the profits made, and files his or her tax returns under section 114 of the Income Tax Ordinance, 2001.

A sole proprietorship also does not have to be concerned with double taxation, as a corporate entity would. Better Tax Planning before commencement of business can significantly reduce/manage the tax burden on the business such as you may be able to deduct tax losses from personal income.

DECISION TIME

Canis Rufus specializing in business formation and better prompt tax planning to help secure you a prosperous business. we may be assist you in the following:

*. Bank Account opening Services
*. Tax Returns Services
*. Comapny Registeration
*. Company Website and Social Media
*. Company Logos and Letterhead
*. Lawyer Services
*. Pre-feasibilty study
*. Accountancy Support (How to maintain your accounts)
*. Business name registration
*. Legal aspects of succession planning
*. Tax implications as a sole trader

Do let us know and we will be pleased to assist you.
Email at: [email protected]
or call at: 032 000 000 39

08/06/2016

Become a Filer Today !! Inbox us!! Canis Rufus helps you become a filer and enjoy the following benefits:

The Federal Board of Revenue (FBR) has specified difference between filers and non-filers of income tax returns to double rates of withholding taxes for non-filers under Income Tax Ordinance 2001 through Finance Bill (2014-15). Explaining the Finance Bill (2014-15), Syed Naveed Andrabi, Advocate Supreme Court explained that a definition in Section 2 of the Ordinance is being inserted to create and identify the difference between a filer and a non-filer.

The person whose name is appearing in the list as an "Active Tax Payer" issued by the Federal Board of Revenue shall b considered as a filer; also a person holding a "Taxpayers' Card". This definition is being added with the intention to treat and differentiate between the said two categories so that the tax withholding may be done at different rates that may be prescribed under the Ordinance through this Finance Bill or later on from time to time. As was being discussed earlier the rates for compliant taxpayers may be the same but for those who are termed, as "Non-Filers" are likely to be at an enhanced rate. Sub-Section 23A & 35C are being inserted in this regard.

The definition of Income as give in Section 2 (29) of the Ordinance is being amended to include the term "Bonus Shares" as income; which earlier was excluded and were not liable to tax. It means that the Bonus Shares shall now be taxable. A new Section 236M is being proposed to be added which would mean that the person issuing "Bonus Shares" to a share holder of a company shall withhold tax @ 5% of the value of bonus shares determined on the basis of day end price on the first day of the closure of books. The company issuing shares shall ensure collection of tax from the person to who such bonus shares are issued or else the same shall be collected from the company by initiating proceedings u/s 161 of the Ordinance.

The definition of Stock Fund is also being inserted by inserting Sub-Section 61A into Section 2 of the Ordinance to identify a collective investment scheme or a mutual fund where the investible funds are invested by way of equity shares in the companies to the extent of more than 70% of the investment, he said.

In Section 37 of the Ordinance the words "held for a period up to two years" is being deleted. This however, would not change the conditions that gain on immovable property held for more than two years shall not be taxable under the Ordinance. The Division VIII of Part I of the First Schedule is being amended to clarify that the 0% tax will be charged if the immovable property is held for more than two years, he said.

The first proviso to Section 37A of the Ordinance is being omitted which means that securities held for more than one year or twelve months shall now be taxable for the Tax Year 2015 for which rates are also given as 12.5% for less than a year and 10% for a security held more than twelve months but less than twenty four months. This means that the securities held for less than two years or 24 months shall now be taxable starting Tax Year 2015. The definition of Securities is also being amended to include "debt securities" which means TFC'S; SAKUK; PTC'S FIB'S T'BILLS & Currency Bonds, etc.

Pakistan Telecommunication Authority (Authority) is a taxable entity under the provisions of Ordinance. The income of the Authority from auction of 3g and 4G licenses was thus liable to tax. A proviso is added in Section 49 of the Ordinance to hold that the income from auction of licenses of 3G and 4G is an income of Federal Government hence shall not be taxed in the hands of the Authority.

A proviso is being added to Section 92 of the Ordinance; whereby the share of a company as a member of Association of Persons (AOP) shall be excluded from the income of the AOP and taxed accordingly in the hands of the company at the normal rates applicable to the company. This means that the minor reduction available to a company by way of taxed income from AOP has been withdrawn, Andrabi said.

The Clause (d) of Section 100B (2) which read as a "foreign institutional investor" being a person registered with NCCPL as a foreign institutional investor; is being substituted by a "Company in respect of Debt Securities only. This means that the provisions of Section 100B shall not apply to a company to the extent of Debt securities; whereas the elimination of "foreign Investor" may cause concerns.

A new Section 100C is being inserted whereby the Trusts; non-profit Organisations and Universities etc, shall be allowed tax credit equal to 100% of the tax under any head except u/s 161; 162 of the Ordinance; provided they file their tax returns; have withheld the tax from the payments made and have filed their withholding statements. The respective exemptions available to such person in Part I of the Second Schedule to the Ordinance have been deleted.

The rate of 1% as minimum tax given in Section 113 has been deleted and separate rates in Division IX of Part I to the First Schedule to the Ordinance have been given. The new rates shall be 0.5% for Oil Marketing Companies; Oil Refineries; Sui Northern & Southern Companies, if turnover is over 1 Billion; Pakistan International Airlines and Poultry Industry. The rate of 0.2% for Distributors of pharmaceuticals; fertilisers and Ci******es; Petroleum Agents and Distributors if they are registered with Sales Tax; Rice Mills and dealers; Flour Mills. For Motor Cycle dealers registered with Sales tax 0.25% and to all other case to whom Section 113 applies it will be 1% of the turnover.

A new Section 113C is being introduced in the Ordinance, which suggest levy of Alternative Corporate Tax which will be applicable from the Tax Year 2014. This means that apart from minimum tax there is yet another comparison for corporate taxpayers. The tax on Corporate Rates or Alternative Tax @ 17% of the accounting profit before tax shall have to be paid. A complete mechanism is proposed along with powers vested in the Commissioner to play around with the adjustments. This will be another branch that may lead to new set of litigation; as the concept of Income under the Ordinance and Accounting parlance is being substituted.

The requirement of filing Wealth Statement is being restricted to a "Resident Person" only. Earlier on all taxpayers; irrespective of their status were required to file a wealth statement along with the return if beyond a certain threshold. The provisions of Section 130(4) of the Ordinance are being amended to include Cost & Management Account with 10 years standing in practice as eligible for appointment as an Accountant Member to the Appellate Tribunal Inland Revenue.

The provisions of Section 149 of the Ordinance are being amended to include the Directors Fee or Fee for attending Board meetings as a salary on which the rate of withholding is suggested @ 20% of the gross amount. The said tax shall be adjustable. This amendment resolves the controversy as to whether such fee paid by a company is a salary or payment for services that may be liable to tax @ 7% of the gross amount. The FBR had earlier clarified such fee to be a service and liable to tax @ 7% of the gross amount. The controversy shall hit the government nominated directors the most.

For Deduction of tax on dividends paid a new Division is being introduced which suggest withholding as 7.5% on power projects; from stock funds @ 12.5% for the Tax Year 2015 and onwards if the Dividends are less than capital gains; Dividends received by a company from stock fund; CIS and Mutual Funds shall be 25% for the tax year 2015 onwards. All others 10% if filers and in case of non-filers 15%.

Similarly, there are changes being brought into Section 151 of the Ordinance to suggest different rates of withholding for different person including filers @ 10% and non-filers @ 15%. The non-filers receiving yield or profit on debt less than Rs 500,000/- shall be subjected to 10% withholding. A proviso has also been added to Section 151 of the Ordinance whereby the tax deducted from the non-filer shall be final to the extent of 10% and the extra 5% shall be adjustable against other income, if he may file the return of income. The apparent reason is to protect small recipients; however, how will the payer identify that the non-filer has not crossed the maximum limit. Another Pandora's Box is being opened for banks whereby the harsh provisions of Section 161 of the Ordinance shall be used.

The contracts signed by sports person with sponsors and employers are now being subjected to withholding tax u/s 153 (1) (c) of the Ordinance. A new Section 181AA is being introduced which suggests that at the time of applying for a new industrial or commercial gas or electricity connection a pre-requisite of registration under the Income Tax Ordinance shall have to be obtained.

Section 231B is proposed to be substituted to suggest that not only at the time of registering the motor vehicle but also on transfer of the vehicle advance tax shall be collected. These rates are being revised for filers and enhanced rates for non-filers. Section 235A is being introduced to withhold tax on domestic consumers of electricity having monthly billing of Rs 100,000 or more.

Section 235B is also being introduced for collection of Income Tax equal to Re. 1 on each unit of electricity unit consumed by the steel melters, re-rollers registered under Sales Tax Special Procedures. Advance Tax @ 1% of the value of the property is also being proposed to be collected at the time of transfer of immovable property valued more than three million, which shall be adjustable. In case of non-filer it shall be 2% of the value.

In case of Foreign Air Travel in Business Class or First Class advance tax shall be collected from filers and non-filers @ 3% & 6% of the value respectively. These proposed changes shall bring in change or increase in taxation, which would then result into more refunds of the legitimate taxpayers and cost of non-filers; unless they are brought into tax net. The emphasis should be on broadening the tax base and not increase in withholding avenues.