ziaulislam
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FalseIf information in these tweets are true, then he is most deserving candidate.
Kasaab valuation was in negative
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FalseIf information in these tweets are true, then he is most deserving candidate.
This is stupid ... all comments shows that writer knows jack shit about taxation and transactuon advisory ... in all type of transaction advisory role of tax advisor is limited to tax implications only and the pricing and traetment have to be decided by investment banker ...If information in these tweets are true, then he is most deserving candidate.
This is stupid ... all comments shows that writer knows jack shit about taxation and transactuon advisory ... in all type of transaction advisory role of tax advisor is limited to tax implications only and the pricing and traetment have to be decided by investment banker ...
Secondly the whole concept of bringing shabbar zaidi is that recently fbr has became a mafia and involved in threatening businesses ... one of the core reasons of lack of investment in Pakistan ...
He will help bringing trust back to Pakistani businessman who can then increase the investment culture ...
his involvement(if he was involved in the first place) just proves that he knows how business men and fbr use the loopholes, and how to plug them, chor ko chor he pakar sakta hai.Every dumb chick is a reporter now a days, and the ignorants who lack the brains to think will follow her blindly as usual.
Before we start, I would like to make it clear that I have never met Mr. Shabbar Zaidi and have no connection with him whatsoever. What little I know about him is from his appearances in a few Talk Shows on TV and that everyone has said good words about him after his appointment was announced. After reading post # 14 by Hon Maithil, I did some research on the KASB bank. I found two interesting articles.
The one in the “Tribune” (https://tribune.com.pk/story/1674378/2-bankislami-kasb-bank-merger-caused-rs3-5b-loss-agp/) says that Office of the Auditor General (AGP) has raised objection on the merger of KASB with the Bank Islami causing the loss of Rs 3.5-billion to the national exchequer.
“The AGP has framed the audit objections in its latest report for the Audit Year 2017-18 on the accounts of the central bank. The AGP had also printed an audit objection of a loss of Rs435 million in its last report for the Audit Year 2016-17. On May 7, 2015, the SBP merged KASB Bank into Bank Islami at a token price of Rs1,000 after the former could not meet the statutory paid-up capital requirement of Rs10 billion. The SBP had extended two separate loans of Rs20 billion to Bank Islami after the amalgamation of KASB bank.”
“In August 2017, The Express Tribune reported that SBP’s financial aid to Bank Islami caused Rs3.45 billion losses.
The auditors were of the view that at the time of KASB’s merger the market value of the bank was Rs6.6 billion, being worked out at Rs3.47 per share of 1.9 billion shares. The decision to merge the bank at Rs1, 000 caused this much loss to the sponsors.”
The second article in the Dawn (https://www.dawn.com/news/1418053) says that “SBP disposes the objections against KSB bank merger”.
“In order to reach the maximum members or shareholders of the bank, notices were also placed on the websites of the Central Depository Company (CDC), Bank Islami (Pakistan) Ltd and Pakistan Stock Exchange (PSX).
A copy of the notices was also issued to the 3,999 members and shareholders of the bank on the given addresses, as per the list obtained from Bank Islami, CDC and PSX.
According to the notice, the members or shareholders of the bank, as on 27-4-2015, were invited to file their written objections to the valuation of the bank as set out in the scheme of amalgamation to the Director, Banking Policy and Regulations Department, SBP, within 15 days of the notice.”
“KASB Bank remained non-compliant with the prescribed minimum capital requirement and capital adequacy ratio since 2009. In January 2011 the SBP imposed monetary penalties and some limitations on operations. The bank was operating in highly objectionable manner, the SBP said.
Due to the continued deteriorating financial position posing serious threats to depositors’ money, the bank failed to inject the required capital as committed with the SBP. The accumulated loss of the bank reached Rs12.6 billion.”
I did not see the name of Mr. Shabbar Zaidi mentioned either in the AGP or in the SBP declarations as published in the Tribune or the Dawn.
Understand that the KASB Bank was a ‘Client’ of the Accountancy firm AF Ferguson (an affiliate of the Price Waterhouse Coopers). NAB, being in the habit of painting everyone with the same brush, included Mr. Zaidi’s name in the ECL list because he is a senior partner.
I would say it is akin to the lawyer of the accused found guilty along with the accused because the lawyer lost the case!
It is with great regret to state that in my country nothing and no one is without controversy. And as I have posted before; since Shabbar Zaidi’s appointment is bound to be an impediment in a lot of people getting rich through Tax theft; every possible tool including character assassination would be employed to stop this from happening.
Except being someone who cannot stop loving his country and would like Pakistan to get out of the perpetual revenue shortfall; I have no other axe to grind. I leave it to the members to think whatever they will about Mr. Zaidi.
Here I would like to add few things. I am an A F Ferguson Alumni and I can confirm that as on organization they are never involved in shady deals... I have never worked in Shabbar's team however, he had a great reputation and was considered as best of the best...
Firstly, I would like to clarify that Shabbar Zaidi is not an auditor, on the contrary, he is a tax practitioner ... In a selling transaction, the role of tax practitioner is limited to advise on the tax implications of various transactions and how to draft the contract to get the maximum tax benefits therefore even if the transaction of KASB bank was shady then it has to be the responsibility of investment banker involved and not the tax advisor. Tax advisor don't even know the price unless it got publicized ... His job gets ended after submission of tax due diligence report and price negotiations start only after getting due diligence reports. Therefore in no case, Shabbar Zaidi can be involved in any shady pricing issue of KASB bank as it is not his job ...
Secondly, people need to understand the difference between tax planning and tax evasion. Tax planning is legal and right of tax-payer and job of tax practitioner is to plan the transaction in such a way to get the most efficient cost structure i.e. the minimum amount of tax to be paid ... On the other hand tax evasion is to conceal your income to not to pay the tax...
I know for sure that AFF never takes a case of tax evasion as I am not only an Ex-Alumin but AFF is also my service provider however, they help us in tax planning ...
An example of tax planning could be like this, if you own a company and your company's office building is also owned by you then you have to pay tax on company's profits however, you can also charge a rent to the company for the building in use. As tax rates on profits is higher than tax rates on rental income therefore on overall basis you will end up paying less tax but your all income will be declared and legal ... On the contrary, if you don't show you actual profits and avoid taxes than its tax evasion and is illegal ...
An example of tax planning could be like this, if you own a company and your company's office building is also owned by you then you have to pay tax on company's profits however, you can also charge a rent to the company for the building in use. As tax rates on profits is higher than tax rates on rental income therefore on overall basis you will end up paying less tax but your all income will be declared and legal ... On the contrary, if you don't show you actual profits and avoid taxes than its tax evasion and is illegal ...
Last i check his nomination is in trouble because of memebers of FBR going to courtThis is stupid ... all comments shows that writer knows jack shit about taxation and transactuon advisory ... in all type of transaction advisory role of tax advisor is limited to tax implications only and the pricing and traetment have to be decided by investment banker ...
Secondly the whole concept of bringing shabbar zaidi is that recently fbr has became a mafia and involved in threatening businesses ... one of the core reasons of lack of investment in Pakistan ...
He will help bringing trust back to Pakistani businessman who can then increase the investment culture ...
True but unfortunate ... however we need to take such tough decisions ... fbr is out of control and its necesaary to overhaul it ... tax is for facilitation of state but they r currently one of the biggest hurdle in state affairs ...Last i check his nomination is in trouble because of memebers of FBR going to court
Every 16 garde FBR official wants to remain a billionaire