PML-N Political Desk

[Jazzbot]

Now even Vice President does not come to receive our so called elected PM. This trend was started by NS in his last tenure, when he sent President of Pakistan to receive some saudi official from royal family and within one week when he himself visited KSA, he was received by deputy governor. He had to visit foreign secretary's office to see him, rather then FS visiting him. This is what we have achieved in the times of political governments, the trend setters.

No one respect beggars and he's a big fat beggar.

 

[SBD-3]

What are you trying to say? C'mon shed some lights.. Oh please share the link of NewYork Times, I want to read full story..

Yes of course NYT is a Yahoodi Funded organization Just like PTI :p

 

[Jazzbot]

Yes of course NYT is a Yahoodi Funded organization Just like PTI :p

I knew it was coming, since you were getting out of argument.. haha.

 

[SBD-3]

Corporate profits go to shareholders and their ROI is generally ranging from 2.5-3 years. Foreign investors are given a tax holiday of 5 years this means they are already in plus after taking out the investment. Now the corporate is operating on the money earned from within the country and spend
it, yet extracting profits in the range of 30% or so. Stake holders are generally those people who feed on dividends without working, therefore, putting a higher tax rate on corporate cannot be counted in injustice. What we are presently practicing is capitalistic approach, which has proved to be wrong.

1-Corporate taxation is different from shareholder's taxation. Net revenue is the income of Corporate not the Shareholder and thus 34% is paid on the Net Revenue by the corporation. Thats why we have NPAT (Net Profit After Tax) which is available for distribution among shareholders in the shape of dividends. Now as the dividend gets distributed amongst the shareholders, these dividends are then added to the Taxable Income of Shareholder and is taxed on the individual taxation rates. Ever wonder why companies prefer to distribute stock dividends and prefer the use of more debt than equity since it provides tax-shield?
2-Shareholders are Investors or Entrepreneurs and their contribution is that of capital available with them and thus they get paid for the return on capital i.e. profit so there is nothing immoral for them to be Feeding on Dividends without Working since they get what they have contributed. That is basic economics (Factors of production and Circular flow of resources in Economy)
3-Tax holidays are allowed on to those Investors who are investing in certain zones (Like export promotion zones) Tax holidays are not allowed to all sectors in all parts of the country. And secondly the tax exemptions are provided to corporate, not the shareholders who would continue to pay personal taxes on their taxable incomes.

I feel that you are unable to differentiate between agriculture tax and tax on income (profits) earned through agriculture. It may have become provincial subject but guidelines are from the federation, just like GST.

Agricultural income in Pakistan, includes income from all the sources related to agriculture and is usually exempted from inclusion in the taxable income of tax payer. Post 18th Amendment, the taxpayers are required to pay the tax on their agricultural income according to the provincially prescribed rates to the provincial revenue authorities and then can declare this to the federal government while furnishing the income tax returns. Federal government will not collect the tax on agriculture/related income but will not exempt the agricultural income from taxable income unless the tax-payer furnishes the payment of agricultural tax to provincial authority.

Implicitly this is what I am also saying put a direct tax of 2% on all banking transaction, ensure all transactions go through bank. Thus, killing more than two birds in on shot.

Taxing bank transaction is an indirect tax since it doesn't consider the income of subject person. The direct taxation is a form of taxation that considers the ability to pay (i.e. Income and wealth) of tax payer.

 

[SBD-3]

I knew it was coming, since you were getting out of argument.. haha. :p

Argument is made in reply to an argument, not a rant.

 

[Jazzbot]

Argument is made in reply to an argument, not a rant.

Absolutely, and you were the one who ranted first..

 

[Jazzbot]

Azizi making fun of Nawaz Sharif for his visit to US..

@Panther 57

 

[SBD-3]

 

[batmannow]

This picture talks a lot...!!

feel the differnce, which was there before too, yes decads back!

 

[Panther 57]

1-Corporate taxation is different from shareholder's taxation. Net revenue is the income of Corporate not the Shareholder and thus 34% is paid on the Net Revenue by the corporation. Thats why we have NPAT (Net Profit After Tax) which is available for distribution among shareholders in the shape of dividends. Now as the dividend gets distributed amongst the shareholders, these dividends are then added to the Taxable Income of Shareholder and is taxed on the individual taxation rates. Ever wonder why companies prefer to distribute stock dividends and prefer the use of more debt than equity since it provides tax-shield?
2-Shareholders are Investors or Entrepreneurs and their contribution is that of capital available with them and thus they get paid for the return on capital i.e. profit so there is nothing immoral for them to be Feeding on Dividends without Working since they get what they have contributed. That is basic economics (Factors of production and Circular flow of resources in Economy)
3-Tax holidays are allowed on to those Investors who are investing in certain zones (Like export promotion zones) Tax holidays are not allowed to all sectors in all parts of the country. And secondly the tax exemptions are provided to corporate, not the shareholders who would continue to pay personal taxes on their taxable incomes.



Agricultural income in Pakistan, includes income from all the sources related to agriculture and is usually exempted from inclusion in the taxable income of tax payer. Post 18th Amendment, the taxpayers are required to pay the tax on their agricultural income according to the provincially prescribed rates to the provincial revenue authorities and then can declare this to the federal government while furnishing the income tax returns. Federal government will not collect the tax on agriculture/related income but will not exempt the agricultural income from taxable income unless the tax-payer furnishes the payment of agricultural tax to provincial authority.


Taxing bank transaction is an indirect tax since it doesn't consider the income of subject person. The direct taxation is a form of taxation that considers the ability to pay (i.e. Income and wealth) of tax payer.

I cant waste my time with a person who wants to remain in the box of academic definitions and can look iut side the box. Take care

 

[SBD-3]

feel the differnce, which was there before too, yes decads back!

Haan is shair-e-Pakistan ki ek phone par t***i nikal gaye thee aur woh bhee US key ek second class official ke call par.

 

[SBD-3]

I cant waste my time with a person who wants to remain in the box of academic definitions and can look iut side the box. Take care

Of course, but arguments without strong academic understanding of concepts often end up this way.

 

[Panther 57]

Of course, but arguments without strong academic understanding of concepts often end up this way.

Though I had given my concluding remark, but your reply prompts me to put this final post on the subject. After having a look at your profile, I can understand your insistence on sticking to the academic definitions of things. I am a corporate decision maker and have of course studied business as well. My comments or opinion are a blend of my experience and academic qualification.

Academic definitions do provide you the starting end. By my dear friend, when you are in real life and in real business environment things are not as simple. Business decisions are not based on academic models. Academic models helps in developing the embryo level of concept. As business feasibility is further developed practicality demands decisions, modeling and investments; which are not supported by academic modeling. If you look at business history you will find great stories are result of unconventional decisions. In today's business world whoever has tried to implement the true academic definition into practicality, they have ultimately suffered more then gained.

Tax collection is a business, with prevailing problems in our tax system, injustices in tax imposition, practices of tax evasion and a large amount of economy being operated underground are the reason, we should look for a more out of the box tax system. E.g. an unbranded burger shop does not pay any tax. Despite the fact that they earn more than you and me. How to bring them in tax net; very few want to surrender to tax authorities voluntarily. Deduction of income tax on bank transaction is not an indirect tax. It will be a direct tax on individual who is paying it. It will be final tax regime, so no one has to file any return. Lets have an example. A person having yearly income of 750.000 is now taxed around 35000 ( not the exact tax amount but around it). As per my recommendation his tax amount through bank transactions would be maximum 30,000. In most of the cases it will be between 20-25000. Now tell me which system is better present or a 2% transaction system, especially when 16-19% GST is not there?

 

[SBD-3]

Though I had given my concluding remark, but your reply prompts me to put this final post on the subject. After having a look at your profile, I can understand your insistence on sticking to the academic definitions of things. I am a corporate decision maker and have of course studied business as well. My comments or opinion are a blend of my experience and academic qualification.

Academic definitions do provide you the starting end. By my dear friend, when you are in real life and in real business environment things are not as simple. Business decisions are not based on academic models. Academic models helps in developing the embryo level of concept. As business feasibility is further developed practicality demands decisions, modeling and investments; which are not supported by academic modeling. If you look at business history you will find great stories are result of unconventional decisions. In today's business world whoever has tried to implement the true academic definition into practicality, they have ultimately suffered more then gained.

Tax collection is a business, with prevailing problems in our tax system, injustices in tax imposition, practices of tax evasion and a large amount of economy being operated underground are the reason, we should look for a more out of the box tax system. E.g. an unbranded burger shop does not pay any tax. Despite the fact that they earn more than you and me. How to bring them in tax net; very few want to surrender to tax authorities voluntarily. Deduction of income tax on bank transaction is not an indirect tax. It will be a direct tax on individual who is paying it. It will be final tax regime, so no one has to file any return. Lets have an example. A person having yearly income of 750.000 is now taxed around 35000 ( not the exact tax amount but around it). As per my recommendation his tax amount through bank transactions would be maximum 30,000. In most of the cases it will be between 20-25000. Now tell me which system is better present or a 2% transaction system, especially when 16-19% GST is not there?

A corporate decision maker is expected to know the difference in corporate and shareholder taxation. Rest we have Aristotles around every corner in this country so i nevermind such long posts.

 

[Panther 57]

A corporate decision maker is expected to know the difference in corporate and shareholder taxation. Rest we have Aristotles around every corner in this country so i nevermind such long posts.

Truth will reveal when you reach the age; you would not have given the comment had you understood the article. Its beyond your comprehension.