This is quite amazing. I don’t know what the numbers are for Zardari but for Nawaz Sharif the taxes paid are following:
2004: Nil
2005: Ziltch
2006: Nada
http://www.zemtv.net/2010/09/16/tax-free-living-in-pakistan-rich-leaders-of-the-poor-nation/
Re: Tax Free Living in Pakistan
such poor people are our leaders, they know our pain they will definitely lead to a good place /sarcasm.
Its amazing how they hide all their wealth, their income from country they want to lead, from people who they claim are sincere with. What good actors these guys are at hiding their drool for the taxpayer's money, their greed for power and pose innocent, sincere leaders. These guys setup their own factories outside country where I am sure they are not paying any tax either by claiming a "foreign investor status".
Re: Tax Free Living in Pakistan
when will CJ take a sou moto notice of this.
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Who’s CJ? 
Anyway it comes as no suprise at all… at least they should pay up all their expenses now before someone tops them off in a coup… or a bloody revolt.
Re: Tax Free Living in Pakistan
THe Chief Justice (of Pakistan)
Re: Tax Free Living in Pakistan
Offcourse how silly of me to overlook that title.
As you can see abbreviated terminology is not exactly my strongpoint nevertheless it's good to learn new terms.
Re: Tax Free Living in Pakistan
This one is a bit unfair on NS.
His source of income is the profit from the companies he is shareholder of and that profit is already taxed and payments of dividends to shareholders also have tax already deducted. I have seen financials of most of the companies he is a director/major shareholder of and they have been paying substantial amount of taxes. Not saying that they would not be evading taxes in one way or another, but claiming that he didn't pay a rupee of tax is not factual.
It is same as most salaried people not paying taxes in cash to the government because tax is already deducted from their monthly salaries. For some of the other leaders who own agricultural lands, their income is not taxable under Pakistani law and they can easily get away claiming all their income is from the agricultural sources.
The situation is worst for people owning private businesses (trading companies, shopping plazas, bhatta association, etc. ). These guys are the majority in Pakistan who evade taxes. The do not need proper documentation and audits (as incorporated businesses would) and therefore get away with handing a lafafa to the tax officials. These are the exact people who later demand uninterrupted supply of electricity and security from the government.
Re: Tax Free Living in Pakistan
Wisely said Kaka
Thanks for pointing out this as ever your a good and prudent guppy.
Re: Tax Free Living in Pakistan
This one is a bit unfair on NS.
His source of income is the profit from the companies he is shareholder of and that profit is already taxed and payments of dividends to shareholders also have tax already deducted. I have seen financials of most of the companies he is a director/major shareholder of and they have been paying substantial amount of taxes. Not saying that they would not be evading taxes in one way or another, but claiming that he didn't pay a rupee of tax is not factual.
It is same as most salaried people not paying taxes in cash to the government because tax is already deducted from their monthly salaries. For some of the other leaders who own agricultural lands, their income is not taxable under Pakistani law and they can easily get away claiming all their income is from the agricultural sources.
The situation is worst for people owning private businesses (trading companies, shopping plazas, bhatta association, etc. ). These guys are the majority in Pakistan who evade taxes. The do not need proper documentation and audits (as incorporated businesses would) and therefore get away with handing a lafafa to the tax officials. These are the exact people who later demand uninterrupted supply of electricity and security from the government.
I don't know how tax filing is performed in Pakistan but even if tax is deducted by the companies from his salary where he is on the board of directors it should have been reported as tax paid by him and not the 'corporate tax'. I am sure he is enjoying good salary/benefits from those companies.
Re: Tax Free Living in Pakistan
^ If tax is already deducted, then you just need to file your return claiming tax has already been deducted (either from your salary or dividends received from the companies). As I said, his major source of income is dividends from those companies since directors are paid nominal salaries in Pakistan. Any corporation in Pakistan not deducting tax at source from the salaries of employees or directors can easily be traced by the auditors. Most of the Sharif family firms are Limited companies which would improve documentation and audit.
The claims made in media say he did not PAY any taxes. That could very well be true that he did not pay those taxes (in cash) with the return, but the return would surely mention the amount of taxes deducted. He tried to clarify the issue in an interview as well but apparently he has tax advisors with zero communication skills who could not explain this to him (which calls into question his eligibility for any important political position in Pakistan into question).
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^ Is there a place where tax-returns filed by these morons can be viewed?
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^ Income tax returns are confidential and FBR cannot disclose their contents (even if directed by courts unless FBR is a direct party in the court).
I am not sure but I think people running for elections have to disclose their returns to the election commission.
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Dont try to justify something which cant be.
your tax statement always says how much tax you gave even if it was paid by employer on YOUR BEHALF before you got the money in your account or if the company has paid tax on YOUR BEHALF if you have earned on shares.
Dont mix it with the tax COMPANIES pay (corporate tax) in which NS is shareholder that is totally different from personal tax.
After the "self assessment" system is introduced, you are bound to tell how much tax you have already paid. Just think for a min, can some sane mind accept the returns submitted by these politicians (across board) as true returns?
This one is a bit unfair on NS.
His source of income is the profit from the companies he is shareholder of and that profit is already taxed and payments of dividends to shareholders also have tax already deducted. I have seen financials of most of the companies he is a director/major shareholder of and they have been paying substantial amount of taxes. Not saying that they would not be evading taxes in one way or another, but claiming that he didn't pay a rupee of tax is not factual.
It is same as most salaried people not paying taxes in cash to the government because tax is already deducted from their monthly salaries. For some of the other leaders who own agricultural lands, their income is not taxable under Pakistani law and they can easily get away claiming all their income is from the agricultural sources.
The situation is worst for people owning private businesses (trading companies, shopping plazas, bhatta association, etc. ). These guys are the majority in Pakistan who evade taxes. The do not need proper documentation and audits (as incorporated businesses would) and therefore get away with handing a lafafa to the tax officials. These are the exact people who later demand uninterrupted supply of electricity and security from the government.
Re: Tax Free Living in Pakistan
^ Not justifying anything.
If you own a business and the business pays tax, it is effectively you paying tax. What I said was because I know Sharif family firms have been paying taxes (in recent few years some of them have been in losses and didn't pay 'income' tax). Of course I never saw NS's tax return and if it doesn't show tax deducted on dividends/salary from the companies he is shareholder of, then he has a loser tax consultant. Either NS or the tax consultant should clarify this or admit they never paid any taxes.
I am just saying that is you do not PAY any tax with the return, it doesn't mean you never paid any tax during that year.
Re: Tax Free Living in Pakistan
Kaka, NO. If you own a business, business have to pay tax and YOU have to pay tax too. Business paying tax is not same as personal tax. I am paying double tax because I am running a small company in Pakistan.
Anyways...
Re: Tax Free Living in Pakistan
This one is a bit unfair on NS.
His source of income is the profit from the companies he is shareholder of and that profit is already taxed and payments of dividends to shareholders also have tax already deducted. I have seen financials of most of the companies he is a director/major shareholder of and they have been paying substantial amount of taxes. Not saying that they would not be evading taxes in one way or another, but claiming that he didn't pay a rupee of tax is not factual.
It is same as most salaried people not paying taxes in cash to the government because tax is already deducted from their monthly salaries. For some of the other leaders who own agricultural lands, their income is not taxable under Pakistani law and they can easily get away claiming all their income is from the agricultural sources.
The situation is worst for people owning private businesses (trading companies, shopping plazas, bhatta association, etc. ). These guys are the majority in Pakistan who evade taxes. The do not need proper documentation and audits (as incorporated businesses would) and therefore get away with handing a lafafa to the tax officials. These are the exact people who later demand uninterrupted supply of electricity and security from the government.
**Kaka Balli:** Ab iss forum per logon ko baiwaqoof (well ... Ch---ya) tou na banaou. Even if some people do not know or understand things in this forum, still you should give them enough respect by not making them fool :)
It seems in your next post you would say that ... every employee working in any Pakistani company should claim that their company paid tax so their salary should not be taxed. :) ... Well, there is no such thing that company is paying taxes so owner of the company draws money from the company for personal expenses/living, buying properties, contesting elections, giving money to children, starting new companies, etc ... and pay no tax.
If company is small private company then they do not pay corporate taxes that limited companies pay to government but they do not get benefits of corporations and limited companies too. Profits of such companies become ‘income of owners’ and owners declare that as their income. Owners pay income taxes on those profits. If such company goes bankrupt then owners every assets, their residential house, any properties in their name, jewelleries, cars, house furniture, well everything owner possess get possessed by lenders and is auctioned/sold to pay debt of the company. Pakistani thugs like Nawaz obviously do not like that (as opposition government would make them bankrupt and would bring them on road) ... so all their companies are limited companies. (Even if Nawaz companies were private companies, Nawaz should be paying tax on every rupee he draws from the company)
If company is limited company (and I believe all Nawaz companies are) then, what happens is that such companies do not pay INCOME TAX. Such Companies pay different sort of taxes, like CORPORATE TAX. If companies go on losses, they claim taxes back from government too. If such companies go bankrupt then owner personal assets are not sold to pay the debt.
Anyhow, whatever profit is left in limited company after paying taxes belong to company (not owners of company). Company can use that profit to pay debt, spend within company to expand, or whatever, but cannot give owners/shareholders to take home. Directors could be owners but it is not necessary that directors are owners too. Directors get salary paid by the company as any employee and directors pay taxes on that salary as any employee of the company.
If company decides to pay owners/shareholders any money then it is called dividend. If company decides to pay dividend to owners/shareholders, company can pay that in two ways.
A (I believe this is what happens in Pakistan): In some countries company pay dividends without deducting income tax, thus payment is gross income for owners/shareholders. Owners/shareholders should declare all dividends they are paid by company to government as income and pay income tax on those payments. (Thus any payment by company is taxable). [Thus Nawaz had to pay income tax on each and every rupee he receives from the company as dividend]
B: In some countries, like UK, companies deduct standard rate of tax from dividends and then pay dividend to owners/shareholders. Whatever companies deduct from dividend goes to government (as Income tax). Owners (Shareholders) who get dividend, if their total income (from all sources plus adding dividend and tax deducted on dividend) takes them to higher rate tax payer band, they pay extra tax to government directly. [Even here Nawaz should be paying Income tax as his dividend must be enough to take him to higher tax payer band]
Anyhow, Parasites like Nawaz, they do not pay income tax because they declare that they received nothing from company as dividend (had no income). That is lie and big fiddle, as they live luxuriously, buy properties, have bank balances, send billions to their children abroad, start new companies from money they get from old companies, and of course spend millions on election. That is different matter that other than what they draw from companies, they steal from public too. Most times doing fraud, they draw so much from company (without declaring it) that it makes the company go bankrupt and these thugs get away with it (they could not do that in limited company as company could not pay owners/shareholders money more than shareholders fund that consist of profits and retained profits).
Anyhow, since most Pakistanis are illiterate, ignorant and idiots, people like Nawaz fool illiterate masses, ignorant and idiots that they are not paying income tax because their companies pay taxes.
Re: Tax Free Living in Pakistan
Kaka, NO. If you own a business, business have to pay tax and YOU have to pay tax too. Business paying tax is not same as personal tax. I am paying double tax because I am running a small company in Pakistan.
Anyways...
If your business is paying tax on its profits, and you are paying tax from the same profits, you need a tax consultant too.
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If your business is paying tax on its profits, and you are paying tax from the same profits, you need a tax consultant too.
I do have a tax consultant and believe me corporate tax is totally different than personal tax.
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^ yup
Re: Tax Free Living in Pakistan
If your business is paying tax on its profits, and you are paying tax from the same profits, you need a tax consultant too.
Yar aap tou bohut kaam kay admi hou. Ap ko income tax officer hona chahiya tha. :) Can you please help me?
Brother, I work for a person who is making good money and he is paying tax too. After paying tax, he pays me good salary. It is really sad that I am paying tax on my salary when he has already paid tax. So, what would you advise me?
Should I stop paying tax on my salary and take Income tax people to court, as my boss has already paid tax on money he gives me? I am sure if you were income tax officer you would not asked me tax, or would you?