Question
Mr Uwaym is a top management employee working in a well renowned local manufacturing company. Owing to rather recent Government measures to increase revenue such
Mr Uwaym is a top management employee working in a well renowned local manufacturing company. Owing to rather recent Government measures to increase revenue such as imposing penalties and additional taxes on persons not filing their income tax return, he is serious, considering to become a compliant tax payer. As of now, he is not even register with FBR
To gain further insight on compliance requirements and structure of Pakistan's income taxes, he has approached you and provided the following initial information
1. Salary package derived from his employment contract that started in 2009 comprises of basic, allowance, perquisite and various reimbursements Further he is also eligible for provident fund
2. He regularly invests in multiple mutual funds.
3. As permitted by his Company, he takes on ad.hoc consultancy assignments for which he needs to travel Pakistan All such income is kept by him in US bank accounts and due US taxes are withheld from turn
4. He owns two flats in Karachi, and both are rented out since 2019 In addition to adiustabk security deposit, he has received non.adiustable amount from tenant on renting one of his properties
5. Recently he has started a small online setup through which he has providing technical services to new start up. All his clients are registered taxpayers
6. He has also bought Health Insurance policy for him and his family. Premium is paid on quarter, basis
7. He is a committed donor for the Citizens Foundation and donates a significant amount every year
8.He also regularly participates in cross word quizzes and won the first price several times.
9. Generally, his salary comprises of 81a% of his yearly income.
Requirements: Please prepare a detailed report on income tax compliances, computations, administration etc. that may apply to him Feel free to make any assumptions that you need for presenting a clearer picture
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