Let us create a 3D eBook for you!
Let us create a 3d Digital eBook for you! DigyCat.com

Furnishing Evidence in E-Tax Compliance


Self-assessment relies on taxpayers voluntarily meeting their tax obligations. This concept is recognised in all tax statutes, which sets out taxpayers' primary obligations, and clearly spells out that taxpayers are required to determine the amount of tax payable correctly and to pay it on time.

Disclosure in this context serves two main purposes. First, it is necessary to provide information for audit selection. Secondly, disclosure is relevant to the issue of the abatement of penalties.

Taxpayers have a statutory obligation to disclose to the Commissioner in a timely and useful way all information required to be disclosed under the tax laws. Disclosure here covers items specifically required to be disclosed by statute, and items for which disclosure is required by the Central Board of Revenue Department. For income tax, under section 26 of sale tax act 1990 and 114 of income tax ordinance 2001, the departments requires a complete statement of the taxable income of the taxpayer for the preceding year, together with such other particulars as may be prescribed. The department's disclosure expectations cover any requirements set out in a particular tax return, in the guide accompanying a particular tax return, or matters for which a specific disclosure form is prescribed.

In the area of tax returns and compliance, electronic commerce may create new variations on old issues as well as new categories of issues. These developments require that practical techniques be developed to deal with these technological innovations. These technological developments touch on a wide range of issues affecting the filing of tax returns.

Electronic commerce is still developing and no electronic money system has yet achieved widespread usage. Nevertheless, it is important to consider these issues now since some issues may require that the needs of filing and providing of tax returns be considered tax returns be addressed while electronic commerce systems are still under development, the filing of tax return of e-business and furnishing evidence. Commerce on the Web can actually facilitate compliance with consumer disclosure requirements.

A New Yorker cartoon once featured two dogs sitting in front of a computer with a caption that read "[O]n the Internet, nobody knows you're a dog." Tax administrators face a similar issue.

Under clause (a) subsection 1 of section 114 of Income tax Ordinance 2001 has make it obligatory on Every person and company regarding filing of the tax return, "?subject to this Ordinance, the following persons are required to furnish a return of income for a tax year, namely (a) Every company and any other person whose taxable income for the year exceeds the maximum amount that is not chargeable to tax under this Ordinance for the year;"

Under section 26 of Sale Tax Act 1990 has make it obligatory on every person and company regarding filing of the monthly tax return, "?Every registered person shall furnish not later than the due date a true and correct return in the prescribed form to a designated bank specified by the Board, indicating the purchases and the supplies made during a tax period, the tax due and paid and such other information, as may be prescribed"

Under section 26AA of Sale Tax Act 1990 has make it obligatory on every person and company regarding filing of the Retail tax return, "?Every person required to pay turnover tax shall furnish a true and correct return in the prescribed form to the Office of the Collector having jurisdiction indicating the value of supplies made in tax period, the tax paid and such other information as may be prescribed."

Identification of the parties to a transaction is a necessary first step in determining what the tax liability is for the transaction and who is liable for any tax payable. In relation to e-commerce, special difficulties are presented. Where business is done through a website the tax authorities must be able to link the website with the "real world" physical parties behind it. A website can easily conceal the true identity of the person benefiting from any business it does. On the Internet it is possible to use a false identity and it is not currently possible to independently verify a party's identity. This raises a number of issues because the identity of counterparty is important for numerous tax provisions.

Similarly, unless tax administrations actively look for signs that existing businesses are involved in e-commerce the existence of a website could remain undetected. Furthermore, websites can quite easily be set up offshore or offshore websites can "front" onshore business. It is imperative for Revenue to encourage voluntary disclosure of websites used as part of the selling and, possibly, distribution functions of a business. As a modest first step, tax forms will need to be changed to ask about e-commerce and to get the website address of any business selling on the internet.

Finally, how the tax returns and other documents are to be attached as provided in tax provisions.

The writer is an advocate of High Court and practicing immigration and corporate laws in Pakistan since September 2001. He is a self employed and pioneer in research on electronic commerce taxation in Pakistan. His articles were published widely in the critical areas of cyber crimes, electronic commerce, e-taxation and various other topics. He wrote LL.M thesis on titled "Legislation of electronic commerce taxation in Pakistan" in which he provided comprehensive legal proposals for statutory reconstruction of tax laws for purpose of imposition of taxation on e-business in Pakistan. Currently he is conducting is research on topic 'Electronic commerce taxation: emerging legal issues of digital evidence'.

Author can be contacted by adil.waseem@lawyer.com.


MORE RESOURCES:

Taxes - Google News

This RSS feed URL is deprecated

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

The case for a junk food tax - Vox


Vox

The case for a junk food tax
Vox
Some kind of government intervention in the food environment probably has to be part of the solution. Taxes have been an effective, though still controversial, approach to curbing the consumption of tobacco, alcohol, and soda. Now researchers from New ...

and more »

4 things to know about the new US tax law - Yahoo Finance


Yahoo Finance

4 things to know about the new US tax law
Yahoo Finance
Under the old tax code, the average family of four (that submitted taxes married-filing-jointly) received a tax break of $16,200 through the personal exemption, one $4,050 exemption for every member of the family. That's gone now, but in its place the ...
Gig-job workers had better beware of pay-as-you-go tax payments CNBC

all 2 news articles »

9 Ways the New Tax Law Affects Millennials - Investopedia (blog)


Investopedia (blog)

9 Ways the New Tax Law Affects Millennials
Investopedia (blog)
The new tax law, the Tax Cuts and Jobs Act, has generated significant buzz as tax experts speculate on how the average American's tax bill will be affected. Some of the most important changes center on key deductions and credits that could have a ...
Ask The Taxgirl: Claiming A Tax Refund When You Owe Tax Forbes
Here's the First Day You Can File Your Taxes This Year Motley Fool

all 81 news articles »

Phone, hotel taxes likely to rise in Naperville - Chicago Daily Herald


Phone, hotel taxes likely to rise in Naperville
Chicago Daily Herald
"From my perspective, especially with the new federal tax law that caps state and local taxes at a $10,000 deduction, it makes a lot of sense to look for alternative revenue streams other than property taxes," Mayor Steve Chirico said. "I think these ...

Did Cook County's failed soda tax cause sales taxes to fizzle, too? - Chicago Daily Herald


Chicago Daily Herald

Did Cook County's failed soda tax cause sales taxes to fizzle, too?
Chicago Daily Herald
The decline in tax revenue from August to September is the equivalent of nearly 2 million fewer 2-liter bottles of soda being sold. Receipts from November -- the fourth and final month the sweetened beverage tax was in effect -- aren't expected until ...

The Government's Taxes on Citizens' Free Time - New Republic


New Republic

The Government's Taxes on Citizens' Free Time
New Republic
When will workers see the fruits of the recently passed Republican tax bill? In just a few weeks, according to the Internal Revenue Service. Last Thursday, the agency released updated tax withholding tables for employers, so that the amount taken out ...
The IRS hired bill collectors to collect back taxes — and got ripped off Los Angeles Times

all 38 news articles »

State of Taxes: Rockland County braces for 2018 tax debate: Tax Watch - The Journal News | LoHud.com


The Journal News | LoHud.com

State of Taxes: Rockland County braces for 2018 tax debate: Tax Watch
The Journal News | LoHud.com
Tax Watch columnist David McKay Wilson looks into the tax debate brewing on many levels in Rockland County in 2018. A decade after borrowing $191 million to pay property tax refunds to a power plant owner, the North Rockland schools still have 20 more ...

Analysis: There's a reason Texas governors keep failing to lower property taxes - Texas Tribune


Texas Tribune

Analysis: There's a reason Texas governors keep failing to lower property taxes
Texas Tribune
It's in the Texas Constitution: The state can't levy a property tax. The governor and the Legislature can't lower rates. The state doesn't do property appraisals, either, so they can't mess with the value of any particular property on the tax rolls ...
Abbott wants to limit local jurisdictions' ability to raise Texans' taxes Dallas News
Gov. Abbott proposes 2.5 percent cap on property tax revenues Chron.com

all 31 news articles »

Financial Sinkhole States In The Trump Tax Era - Forbes


Forbes

Financial Sinkhole States In The Trump Tax Era
Forbes
What damage will the loss of a deduction do to blue states with stiff taxes? Do you live in a sinkhole state? There are eight of them, led by California and New York. These are places where the population dependent on the state — for employment ...

LargeFriends.com - the best dating site for plus-sized singles!
SuccessfulMatchCentral.com - the best dating site for plus-sized singles!

PreLaunchX

PrimeNews Domain Is For Sale - $5,000 For Enquiries eMail Us

© www.PrimeNews.biz - 2012

home | site map | links