Income Tax Provision Checklist
Income Tax Provision Checklist
Name of Client:
Total Income:
Current Year
Prior Year
Prior Year
Tax Partner
Note:
This checklist does not apply to insurance companies and businesses involved in production of
oil & natural gas and exploration & extraction of other mineral deposits.
Execution Phase
Compliance of Various Laws
Companies Ordinance Compliance Checklist
CLIENT:
PERIOD/YEAR
:
Objectives
Within the overall objective of ensuring that the financial statements present a fair view of the
client's financial position, the objectives regarding taxation are to ensure that:
1. adequate disclosure has been made in the financial statements in respect of company tax
liabilities and have been dealt with properly.
2. any amounts shown in the appropriation account and notes are properly computed and
disclosed.
3. adequate provision has been made for any withholding taxes on non-resident third party
payments being borne by the company.
Work done
The previous year's tax computation, annual returns, assessment orders, appeals statements and
subsequent letters have been reviewed together with the estimates for the current period to achieve
the above objective. The file contains a copy of the previous year's return and a memorandum
signed by a tax manager/partner of work done in the tax review.
Conclusion
It is my opinion that subject to the matters listed on the list of outstanding items.
1. Adequate provision has been for company tax and withholding taxes liabilities.
2. Appropriate disclosures have been made of the overall taxation position on a basis
consistent with the previous period.
1 General
1.10 Provision for bad debts made during the year has 29
been offered for tax.
b) derivation of income
comprising of taxable income and any class
of income which falls under the
presumptive tax regime (PTR); or
c) derivation of income
chargeable to tax under a head of income
and to some other purpose (e.g. exempt
income)
1.39 Foreign losses are set off and carried forward 104
separately from Pakistan source losses and are
not set off against Pakistan source income.
1.41 Credit for advance tax paid under Section 147 147 to
and taxes deducted/paid at source has been 156 &
claimed on tax year basis and not on financial 233
year basis.
2.3.5 Intangibles 24
3.8.3 The amount of any local rate, tax, charge or cess 17 (c)
(being owners burden) in respect of property or
income from property other than any tax payable
under the Income Tax Ordinance, 2001.
n jewelry;
n a rare manuscript;
n a coin or medallion
n an antique.
4.4 Where the capital asset has been held for more 37(3)
than one year, only 75% of the capital gains has
been offered for tax.
Execution Phase
Compliance of Various Laws
Companies Ordinance Compliance Checklist
(a) dividend;
6.1 Dividend 5
6.2 Royalty 6
6.5 Income of the importer arising from the imports 148 (7)
except in the case of an industrial undertaking
importing goods as raw materials for its own use.
Execution Phase
Compliance of Various Laws
Companies Ordinance Compliance Checklist
6.12 Tax collected from any person being the owner 234
of goods transport vehicle shall be the final tax
on the income of such person from plying or
hiring out of such vehicles.
Execution Phase
Compliance of Various Laws
Companies Ordinance Compliance Checklist