November 20, 2006	Monday	Shawwal 27, 1427

WHILE reforms have reduced the hassles in tax compliance, there is still room for improvement. And perhaps, the best way to improve the tax culture is though voluntary compliance like self-assessment scheme.

Voluntary compliance can be promoted by making tax laws and procedures simple for the ordinary tax payer to comply with. For this, the rules and regulations also need to be stated in simple words so that they can be easily understood.

While it is the responsibility of the state to remove difficulties and to facilitate its citizens in solving their problems, it may not normally happen. As the business of the state is complex and complicated, so are its ways of doing things. Tax laws are no different and are spelt out in technical jargons.

The tax payers have to seek professional assistance for the simplest of quarries. And often the cost of expertise may not be so welcome for them.Many do not like to venture into an unknown territory.

But things appear to be changing not because of the government but due to the efforts of two leading tax consultants. Now, the ordinary tax payers can benefit by reading the book “Pakistan Income Tax Law- Principles and Practices” penned by Mian Safiullah and Kashif Aziz Janhangiri which is user friendly. The authors are partners of KPMG Taseer Hadi and Co.

Conscious of the fact that the income tax law is structured and written in a manner which leads to related provisions being spread over all across the text, the authors of the book present a different perspective with primary focus on two key aspects. First, the book consolidates all legislations relating to a specific topic in one place. Second, it uses simple and concise language to express the income tax law in an easy understandable form. Thus, one would not be required to go through the entire related provisions to file an income tax return.

The authors also raise a very pertinent question: why are the legislators not conscious of hurdles and create such complicated laws ?

The sections and rules of the income tax laws have been avoided in the main text. But the book, according to the authors, would help in understanding of the law and its implications for compliance of tax regulations. Divided into various chapters, the book categorises sources of income and does not follow or conform to the chronology of the Income Tax Ordinance. These include income from salary, property rentals, dividends, capital gains, profits from investments and deposits- the whole range of topics of the corporate business, and matters related to non-profitable organisations etc.

Spread over 1024 pages, the book is based on tax laws and rules enacted and updated up to September 2006. In his comments, included in the book, Sartaj Aziz, a former finance minister, says “ It is not a text book but a navigational guide through the complex terrain of income tax law.”

The book may prove to be a reference guide on income-tax law for corporate executives, business persons, professionals, tax officials and students.

Pakistan Income Tax Law: Principles And Practice by Mian Saifullah, FCA, & Kashif
Aziz Jahangiri, ACA, LLB
Published by Rahamkar Publications;
Printed by Fazleesons (Pvt), Ltd; Karachi,
September 2006, 1024 pp