Tax profiles of leading 25 cricketers finalised by the Federal Board of Revenue (FBR) showed that first class players have failed to file their wealth statements and income tax returns for Tax Years 2010 and 2011, having foreign source of income from international cricketing ventures, English counties and premier leagues.
Sources told Business Recorder here on Sunday that most top cricketers concealed their income and properties through gross mis-declarations of their income and assets earned through different sources. Tax profiles of famous cricketers also showed that some of them have not even filed their income tax returns. In a few cases, former captains of cricket teams have also avoided accurate payment of taxes with non-filing of wealth statement. The concealment of income and assets has also been done by cricketers who are playing lead role in advertisements of soft drinks. Some cricketers are reported to have earned hefty cash and rewards in India, Bangladesh and other countries have not mentioned the same in their income tax returns to avoid payment of taxes.
The FBR proposed amendment in assessments of income tax returns under Section 122 of the Income Tax Ordinance 2001 keeping in view huge concealment of income by these cricketers. The level of concealment of taxes is evident from these 24-25 tax profiles of top cricketers compiled by the FBR.
Tax profiles of top cricketers also disclosed an astonishing fact that foreign income earned by them has not been declared despite the fact that as a resident Pakistani, both the Pakistan and foreign sources of the income of these players are liable to tax in Pakistan.
Analysis of cricketers' tax profiles further shocked the tax department, as most of them are playing first class cricket for the past several years, but failed to declare their actual sources of incomes, particularly foreign income.
Tax profiles further exposed cricketers who failed to declare their income earned through winnings prizes and awards during international tours.
Tax profiles maintained by the FBR further showed that some top cricketers remained Brand Ambassadors of various major companies, but were reluctant to disclose their earning in their income tax returns. FBR's tax profiles further disclosed that some players are playing for national cricket team, but not filing their income tax returns.
Tax profile of an NTN holder cricketer disclosed that no wealth statement had been filed by the cricketer either in 2010 or 2011, whereas he is obligated to file these as his income exceeds the threshold for filing wealth statements. Wealth statements are, therefore, needed to be enforced. While scrutinising the enforced wealth statements, various declared assets may also be examined from the point of view of generating any income for the individual.
Through the Finance Act 2009, provisions of Section 153 of the Income Tax Ordinance 2001 were amended and tax collected from payments made on account of services rendered made minimum tax liability. Previously, such deductions constituted full and final discharge of tax liability and receipts under the head 'services' fell under the presumptive tax regime. Thus, with effect from tax year 2010, receipts under the services are to be taxed outside the presumptive tax regime and the tax deducted thereon constitutes minimum tax liability. he, however, continues to declare services receipts under the presumptive tax regime which amounts to mis-declaration/misclassification of income.
In view of the quantum of receipts in the instant case, taxation of services receipts under the normal law is expected to generate tax revenue much higher than the presumptive tax regime due to the applicability of the higher slab rates and nominal expenses which the individual might have incurred while earning income under this head. Amendment under Section 122 is warranted on this count, tax profile said.
Though the quantum of receipts under the head services identified by the Directorate-General Intelligence and Investigation, Inland Revenue, are less than those declared by the taxpayer (as worked back from his tax deductions), it has to be noted that all these receipts constitutes payments are Pakistan source of income on which tax has been deducted under Section 153 of the Income Tax Ordinance, 2001. He has also been part of various international cricketing ventures such as Asia XI, Duronto Rajshahi (Bangladesh Premier League), Hampshire (English County Cricket), Hampshire 2nd Xl (English County Cricket), Hyderabad Heroes (Indian Premier League), ICL Pakistan Xl, Khan Research Labs, Lahore, Lahore Lions, Leicestershire (English County Cricket), Melbourne Renegades, Middlesex (English County Cricket), Pakistan International Airlines, Surrey (English County Cricket) and Worcestershire (English County Cricket). These are all sources of lucrative income, for instance he received $100,000 for playing the recently concluded Bangladesh Premier League. As a resident Pakistani, both Pakistan and foreign sources of income of this leading cricketer are liable to tax in Pakistan.
Other obvious sources of income of the cricketer are advertisement (like his appearance in a soft drink advertisement) and winnings from prizes and awards. Information collection about these sources (about which field formations are sufficiently empowered), could show the actual extent of income in the instant case, tax profile added.
Another tax profile showed that no wealth statements have been filed by this cricketer either in 2010 or 2011, whereas he is obligated to file these as his income exceeds the threshold for filing wealth statements. Wealth statements are, therefore, needed to be enforced. While scrutinising the enforced wealth statement, various declared assets may also be examined from the point of view of generating any income for the individual.
Through the Finance Act 2009, provisions of Section 153 of the Income Tax Ordinance 2001 were amended and tax collected from payments made on account of services rendered made minimum tax liability. Previously, such deductions constituted full and final discharge of tax liability and receipts under the head 'services' fell under the presumptive tax regime. Thus, with effect from Tax Year 2010, receipts under the services are to be taxed outside the presumptive tax regime and the tax deducted thereon constitutes minimum tax liability.
For Tax Year 2010, he declared his services receipts under the presumptive tax regime which constitute a mis-classification/ mis-declaration of income. Appropriate action under the law is warranted for taxing services receipt under normal law. For the Tax Year 2011, though this cricketer has offered services receipts under normal law, but has claimed expenses at Rs6,265,578 against the receipts of Rs7,771,006. Claim of such huge expenses against the services receipts which are earned primarily because of his professional acumen is strange and need a clarification from the Taxpayer to know the nature and admissibility under the law.
Apart from playing for Pakistan, he also played for other teams like Khan Research Laboratories, Lahore, Lahore Eagles and Lahore Lions. He is also a Brand Ambassador of a telecom company and has also won a number of prizes and awards, tax profile added.
Tax profile showed that the information from 'Trekker' for the Tax year 2011 showed that the cricketer invested in purchase of motor vehicles. The cricketer has been associated with the national cicket team since 2001 but has not filed income tax returns as per the Pakistan Revenue Automation Limited (PRAL) database. Income tax returns are needed to be enforced immediately along with wealth statements.
Through the Finance Act 2009, provisions of Section 153 of the Income Tax Ordinance 2001 were amended and tax collected from payments made on account of services rendered made minimum tax liability. Previously, such deductions constituted full and final discharge of tax liability and receipts under the head 'services' fell under the presumptive tax regime. Thus, with effect from Tax Year 2010, receipts under the services are to be taxed outside the presumptive tax regime and the tax deducted thereon constitutes minimum tax liability. In view of the quantum of receipts in the instant case, taxation of services receipts under the normal law is expected to generate tax revenue much higher than the presumptive tax regime due to the applicability of the higher slab rates and nominal expenses which the individual might have incurred while earning income under this head.
Apart from the National Team, he has also played for some other teams like Biman Bangladesh, a Bank, ICL Pakistan Xl, Lahore, Lahore Badshahs (Indian Cricket League), Lahore Eagles, Lahore Lions and Pakistan Reserves. He has also won a number of prizes and awards. All these aspects need to be taken cognisance while enforcing returns, tax profile showed.
While scrutinising the enforced wealth statement, various declared assets may also be examined from the point of view of generating any income for the individual, FBR added.
Tax profile of another leading cricketer showed that he has been playing for the national cricket team since 2002, but it is a pity that he has filed any tax return. He should, therefore, be made aware of his tax obligations immediately and tax returns enforced along with wealth statements, FBR said.
Through the Finance Act of 2009, provisions of Section 153 of the Income Tax Ordinance 2001 were amended and tax collected from payments made on account of services rendered made minimum tax liability. Previously, such deductions constituted full and final discharge of tax liability and receipts under the head 'services' fell under the presumptive tax regime. Thus, with effect from Tax Year 2010, receipts under the services are to be taxed outside the presumptive tax regime and the tax deducted thereon constitutes minimum tax liability. In view of the quantum of receipts in the instant case, taxation of services receipts under the normal law is expected to generate tax revenue much higher than the presumptive tax regime due to the applicability of the higher slab rates and nominal expenses which the individual might have incurred while earning income under this head.
Apart from the receipts mentioned above the individual has also appeared in advertisements of a mobile phone company. Additionally, he also plays for Lahore Stallions and has received various cash rewards for his performance. All these aspects need to be taken cognizance while enforcing return.
Tax profile said the cricketer also received considerable income over the years from various international cricketing ventures such as playing for the Rajhistan Royals in the Indian league. He was also paid $100,000 by Sylhet for playing in the Bangladesh Premier League (BPL), although this payment falls within the tax year 2012. While scrutinising the enforced wealth statement, various declared assets may also be examined from the point of view of generating any income for the individual.
The FBR's tax profile of another top cricketer showed that the captain of the national test and ODI teams, the cricketer is also among non-filers for the Tax Year 2011, and according to PRAL database, only an employer statement is available in his case. Return for the Tax Year 2011, therefore, needs to be enforced along with wealth statement.
Though receipts from services for Tax Year 2010 (Rs37,705,733 as worked back from the tax deducted mentioned in his declaration) are more than those identified by this Directorate General IR, they have been declared under the presumptive tax regime rather than offering them for taxation under normal law. Through the Finance Act 2009, provisions of Section 153 of the income Tax Ordinance 2001 were amended and tax collected from payments made on account of services rendered made minimum tax liability. Previously, such deductions constituted full and final discharge of tax liability and receipts under the head 'services' fell under the presumptive tax regime. Thus, with effect from Tax Year 2010, receipts under the services are to be taxed outside the presumptive tax regime and the tax deducted thereon constitutes minimum tax liability.
In view of the quantum of receipts in the instant case, taxation of services receipts under the normal law is expected to generate tax revenue much higher than the presumptive tax regime due to the applicability of the higher slab rates and nominal expenses which the individual might have incurred while earning income under this head. Amendment under Section 122 is, therefore, warranted under the law. Similarly, while enforcing return for Tax Year 2011, this aspect may be given due consideration, FBR said.
Apart from the receipts mentioned above, he is also a Brand Ambassador of the cellular company. Additionally his receipts from various prizes and association with international cricketing ventures also need to be taken cognisance while enforcing returns.
While scrutinising the enforced wealth statement, various declared assets may also be examined from the point of view of generating any income for the individual, tax profile added.
Tax profile added that the incumbent captain of the national 120 team, cricketer has not filed any returns as per the PRAL database. All that is available in his case is a solitary employer's statement for the Tax Year 2010. Returns of income are therefore needed to be enforced immediately along with wealth statements.
Through the Finance Act 2009, provisions of Section 153 of the Income Tax Ordinance 2001 were amended and tax collected from payments made on account of services rendered made minimum tax liability. Previously, such deductions constituted full and final discharge of tax liability and receipts under the head 'services' fell under the presumptive tax regime. Thus, with effect from Tax Year 2010, receipts under the services are to be taxed outside the presumptive tax regime and the tax deducted thereon constitutes minimum tax liability. In view of the quantum of receipts in the instant case, taxation of services receipts under the normal law is expected to generate tax revenue much higher than the presumptive tax regime due to the applicability of the higher slab rates and nominal expenses which the individual might have incurred while earning income under this head, FBR said.
Apart from receipts mentioned above, he is also a Brand Ambassador of a telecom company. Additionally he has also remains part of lucrative international cricketing ventures like the recently concluded Bangladesh Premier League (BPL). All these aspects need to be taken cognisance while enforcing return filing by the cricketer. While scrutinising the enforced wealth statement, various declared assets may also be examined from the point of view of generating any income for the individual, FBR added.
Tax profile of another cricketer showed that despite playing for the national cricket team since 2007, he is not on the tax roll. He should, therefore, be brought on tax roll immediately and tax returns along with wealth statements enforced in his case.
Through the Finance Act 2009, provisions of Section 153 of the Income Tax Ordinance 2001 were amended and tax collected from payments made on account of services rendered made minimum tax liability. Previously, such deductions constituted full and final discharge of tax liability and receipts under the head 'services' fell under the presumptive tax regime. Thus, with effect from Tax Year 2010, receipts under the services are to be taxed outside the presumptive tax regime and the tax deducted thereon constitutes minimum tax liability. In view of the quantum of receipts in the instant case, taxation of services receipts under the normal law is expected to generate tax revenue much higher than the presumptive tax regime due to the applicability of the higher slab rates and nominal expenses which the individual might have incurred while earning income under this head.
He is one of those cricketers who, in addition to playing in Pakistan, play a substantial part of their cricket for teams outside Pakistan. Some of the cricket teams for which he has been playing are: A Bank, Herefordshire (English County Cricket), Hobart Hurricanes (Bigbash League Australia), ICL Pakistan Xl, Lahore Badshahs (Indian Cricket League), Lahore Division, Pakistan Customs, Sheikhupura Cricket Association, Sialkot Cricket Association, Sussex (English County Cricket), Tasmania (Sheffield shield Australia) and Yorkshire (English County Cricket). The cricketing ventures outside Pakistan are normally a source lucrative income and as a resident individual, both the Pakistan and foreign sources of Income of this cricketer are taxable within Pakistan. All these aspects need to be taken cognisance while enforcing returns, FBR said.
While scrutinising the enforced wealth statement, various declared assets may also be examined from the point of view of generating any income for the individual, tax profile added.
Tax profile of another cricketer disclosed that although bringing many laurels for Pakistan in the past couple of years in the cricketing field, he has failed to meet his obligation of filing a return of his income. Returns are, therefore, needed to be enforced along with wealth statement.
Through the Finance Act 2009, provisions of Section 153 of the Income Tax Ordinance 2001 were amended and tax collected from payments made on account of services rendered made minimum tax liability. Previously, such deductions constituted full and final discharge of tax liability and receipts under the head 'services' fell under the presumptive tax regime. Thus, with effect from Tax Year 2010, receipts under the services are to be taxed outside the presumptive tax regime and the tax deducted thereon constitutes minimum tax liability. In view of the quantum of receipts in the instant case, taxation of services receipts under the normal law is expected to generate tax revenue much higher than the presumptive tax regime due to the applicability of the higher slab rates and nominal expenses which the individual might have incurred while earning income under this head.
Apart from receipts mentioned above the individual, he is also a brand ambassador of a cellar company. Additionally he has also remained part of some lucrative international cricketing ventures like the English County Cricket, playing for Worcestershire. He was to be paid $100,000 by Dhaka Gladiators for playing in the Bangladesh Premier League (BPL). All these aspects need to be taken cognisance while enforcing return.
While scrutinising the enforced wealth statement, various declared assets may also be examined from the point of view of generating any income for the individual, tax profile added. The FBR said that a former captain of the national cricket team, he has filed Income Tax returns for the Tax Year 2010 and 2011 but has failed to file any wealth statements which were obligatory as his income exceeds the threshold for filing wealth statements. Wealth statements are, therefore, needed to be enforced and while scrutinising them; various declared assets may also be examined from the point of view of generating any income for the individual.
He is the only national cricketer who has declared receipts under the head, "Royalties/Fees (Non-Resident)" for the tax year 2010. As he is a resident for tax purposes and returns have also been filed in the status of a resident individual, therefore, this seems a misclassification of the sources of income. The section of the Income Tax return pertaining to "Royalty/Fees (Non-Resident relates to payments made to non-residents in Pakistan). In all obviousness, the receipts under this head are cricketer's foreign source of income, earned from various international cricketing, and related, ventures where Section 101(16) of the Income Tax Ordinance, 2001 applies. The declaration of these receipts under the presumptive tax regime by him, therefore, amounts to mis-declaration and warrants amendment of his tax declaration.
His declared receipts from services rendered in Pakistan are more than the information available with this office but this declaration also suffers a serious misclassification/mis-declaration. Through the Finance Act 2009, provisions of Section 153 of the Income Tax Ordinance 2001 were amended and tax collected from payments made on account of services rendered made minimum tax liability. Previously, such deductions constituted full and final discharge of tax liability and receipts under the head 'services' fell under the presumptive tax regime. Thus, with effect from Tax Year 2010, receipts under the services are to be taxed outside the presumptive tax regime and the tax deducted thereon constitutes minimum tax liability. He, however, has continued to declare services receipts under the presumptive tax regime.
In view of the quantum of receipts in the instant case, taxation of services receipts under the normal law is expected to generate tax revenue much higher than the presumptive tax regime due to the applicability of the higher slab rates and nominal expenses which the individual might have incurred while earning income under this head. Amendment under Section 122 is also warranted on this count.
He has also appeared in many advertisements and was the only Pakistani to appear in the Gillette Champions advertisement with Roger Federer, Tiger Woods and Thierry Henry, FBR added.
Tax profile of another cricketer showed that he has been associated with the National Cricket Team since 2001 but has not filed any Income Tax return as per the PRAL database. Returns of Income are, therefore, needed to be enforced immediately along with wealth statements.
Through the Finance Act 2009, provisions of Section 153 of the Income Tax Ordinance 2001 were amended and tax collected from payments made on account of services rendered made minimum tax liability. Previously, such deductions constituted full and final discharge of tax liability and receipts under the head 'services' fell under the presumptive tax regime. Thus, with effect from Tax Year 2010, receipts under the services are to be taxed outside the presumptive tax regime and the tax deducted thereon constitutes minimum tax liability. In view of the quantum of receipts in the instant case, taxation of services receipts under the normal law is expected to generate tax revenue much higher than the presumptive tax regime due to the applicability of the higher slab rates and nominal expenses which the individual might have incurred while earning income under this head.
Apart from the receipts mentioned above, he is a Brand Ambassador of a mobile phone company. Additionally he is an employee of a bank and has also played for a number of' other teams like: ICL Pakistan Xl, Lahore, Lahore Badshahs, Mumbai Champs, and Pakistan Reserves. As a resident individual, both his Pakistan and foreign sources of Income are taxable within Pakistan. All these aspects need to be taken cognisance while enforcing return.
While scrutinising the enforced wealth statement, various declared assets may also be examined from the point of view of generating any income for the individual, FBR added.
Tax profile of a cricketer showed though borne on tax roll, has however failed to file Returns of Income. Tax returns are therefore needed to be enforced along with wealth statements.
Through the Finance Act 2009, provisions of section 153 of the Income Tax Ordinance 2001 were amended and tax collected from payments made on account of services rendered made minimum tax liability. Previously, such deductions constituted full and final discharge of tax liability and receipts under the head 'services' fell under the presumptive tax regime. Thus, w.e.f. tax year 2010, receipts under the services are to be taxed outside the presumptive tax regime and the tax deducted thereon constitutes minimum tax liability. In view of the quantum of receipts in the instant case, taxation of services receipts under the normal law is expected to generate tax revenue much higher than the presumptive tax regime due to the applicability of the higher slab rates and nominal expenses which the individual might have incurred while earning income under this head.
Apart from the receipts mentioned above the individual has also appeared in advertisements. Additionally he also plays for the Lahore Stallions and has received various cash rewards for his performance. All these aspects need to be taken cognisance while enforcing return. While scrutinising the enforced wealth statement, various declared assets may also be examined from the point of view of generating any income for the individual, FBR added.
Tax profile of another cricketer disclosed that he has been playing first class cricket since 2001 and since 2010 has been playing for the National Cricket Team. He has, however, not filed any Tax return as per the PRAL database. Returns of Income, therefore, need to be enforced immediately along with wealth statements.
Through the Finance Act 2009, provisions of Section 153 of the Income Tax Ordinance 2001 were amended and tax collected from payments made on account of services rendered made minimum tax liability. Previously, such deductions constituted full and final discharge of tax liability and receipts under the head 'services' fell under the presumptive tax regime. Thus, w.e.f. tax year 2010, receipts under the services are to be taxed outside the presumptive tax regime and the tax deducted thereon constitutes minimum tax liability. In view of the quantum of receipts in the instant case, taxation of services receipts under the normal law is expected to generate tax revenue much higher than the presumptive tax regime due to the applicability of the higher slab rates and nominal expenses which the individual might have incurred while earning income under this head.
He has also been playing for various teams, both in Pakistan and outside. Some of the teams he has played for are Hyderabad (Pakistan), Hyderabad Hawks (India), Kent (England), Lahore Lions, Lahore Ravi, a Bank, Pakistan-A, Punjab. Additionally, he has also won a number of prizes. As a resident individual both his Pakistan and foreign source of income are taxable in Pakistan. All these aspects need to be taken cognisance while enforcing return, tax profile said.
While scrutinising the enforced wealth statement, various declared assets may also be examined from the point of view of generating any income for the individual, FBR added.
Tax profile of another player showed that he has been associated with the National Cricket Team since 2007 but has not filed any Income Tax return as per the PRAL database. Returns of Income, therefore, need to be enforced immediately along with wealth statements.
Through the Finance Act 2009, provisions of section 153 of the Income Tax Ordinance 2001 were amended and tax collected from payments made on account of services rendered made minimum tax liability. Previously, such deductions constituted full and final discharge of tax liability and receipts under the head 'services' fell under the presumptive tax regime. Thus, w.e.f. tax year 2010, receipts under the services are to be taxed outside the presumptive tax regime and the tax deducted thereon constitutes minimum tax liability. In view of the quantum of receipts in the instant case, taxation of services receipts under the normal law is expected to generate tax revenue much higher than the presumptive tax regime due to the applicability of the higher slab rates and nominal expenses which the individual might have incurred while earning income under this head.
Apart from receipts mentioned above, he is a Brand Ambassador of a cellular company. Additionally he is an employee of a bank and has also played for some other teams like, Gujranwala Cricket Association, Sialkot, and Sialkot Stallions. All these aspects need to be taken cognisance while enforcing return.
While scrutinising the enforced wealth statement, various declared assets may also be examined from the point of view of generating any income for the individual, FBR added. Tax particulars of another cricketer showed that he has been associated with the national cricket team since 2010 and has been playing first class cricket since 2007 but he is not borne on the tax roll as per the PRAL database. His should be brought on tax roll and Income Tax Returns enforced immediately along with wealth statements.
Through the Finance Act 2009, provisions of Section 153 of the Income Tax Ordinance 2001 were amended and tax collected from payments made on account of services rendered made minimum tax liability. Previously, such deductions constituted full and final discharge of tax liability and receipts under the head 'services' fell under the presumptive tax regime. Thus, w.e.f. tax year 2010, receipts under the services are to be taxed outside the presumptive tax regime and the tax deducted thereon constitutes minimum tax liability. In view of the quantum of receipts in the instant case, taxation of services receipts under the normal law is expected to generate tax revenue much higher than the presumptive tax regime due to the applicability of the higher slab rates and nominal expenses which the individual might have incurred while earning income under this head.
Apart from the receipts mentioned above, he is a Brand Ambassador of a telecom company. Apart from the National Team, he has also played for Karachi Blues, Karachi Dolphins, Karachi Whites, Karachi Zebras, North West Frontier Province, North West Frontier Province Panthers, Pakistan A, Pakistan Cricket Academy, Sind and Sind Dolphins. All these aspects need to be taken cognisance while enforcing return. While scrutinising the enforced wealth statement, various declared assets may also be examined from the point of view of generating any income for the individual, FBR added.
Tax profile of another top cricketer showed that no wealth statements have been filed by him either in 2010 or 2011, whereas he is obligated to file these as his income exceeds the threshold for filing wealth statements. Wealth statements are therefore needed to be enforced. While scrutinising the enforced wealth statement, various declared assets may also be examined from the point of view of generating any income for the individual.
Through the Finance Act 2009, provisions of Section 153 of the Income Tax Ordinance 2001 were amended and tax collected from payments made on account of services rendered made minimum tax liability. Previously, such deductions constituted full and final discharge of tax liability and receipts under the head 'services' fell under the presumptive tax regime. Thus, w.e.f. tax year 2010, receipts under the services are to be taxed outside the presumptive tax regime and the tax deducted thereon constitutes minimum tax liability. The taxpayer, however, continues to declare services receipts under the presumptive tax regime.
In view of the quantum of receipts in the instant case, taxation of services receipts under the normal law is expected to generate tax revenue much higher than the presumptive tax regime due to the applicability of the higher slab rates and nominal expenses which the individual might have incurred while earning income under this head. Amendment u/s 122 is warranted on this count.
Though the quantum of receipts under the head services are less than those declared by the taxpayer in his returns, it has to be noted that all these receipts constitutes payments are Pakistan source of income on which tax has been deducted u/s 153 of the Income Tax Ordinance, 2001. He has also been part of various international cricketing ventures such as AsiaXI, Deccan Chargers (India), Fly Emirates Xl, Hampshire (England), ICC WorldXl, Melbourne Renegades (Bigbash League, Australia), South Australia (Bigbash League, Australia). These are all sources of lucrative income, for instance he received $700,000 for playing the recently concluded Bangladesh Premier League. As a resident individual (in which status returns have also been filed) cricketer's both Pakistan and foreign sources of income are taxable in Pakistan. Further information collection about all these sources (about which the field formations are sufficiently empowered), could reveal the actual extent of income in the instant case. Tax profile also showed that he has been associated with the national cricket team since 2010 and playing first class cricket since 1999/00 but is not borne on Tax role as per the PRAL database. His case needs to brought tax role immediately and Returns of Income enforced along with wealth statements.
Through the Finance Act 2009, provisions of section 153 of the Income Tax Ordinance 2001 were amended and tax collected from payments made on account of services rendered made minimum tax liability. Previously, such deductions constituted full and final discharge of tax liability and receipts under the head 'services' fell under the presumptive tax regime. Thus, w.e.f. tax year 2010, receipts under the services are to be taxed outside the presumptive tax regime and the tax deducted thereon constitutes minimum tax liability. In view of the quantum of receipts in the instant case, taxation of services receipts under the normal law is expected to generate tax revenue much higher than the presumptive tax regime due to the applicability of the higher slab rates and nominal expenses which the individual might have incurred while earning income under this head. He has also played for teams like Banks, Balochistan, Balochistan Bears, Karachi, Karachi Blues and Public Works Department. Income realised from these sources should also be taken into account while enforcing returns. While scrutinising the enforced wealth statement, various declared assets may also be examined from the point of view of generating any income for the individual, FBR added.
The Former captain of the National Cricket Team is also among the non-filers for the Tax Year 2011, and as per the PRAL database, only an employer statement is available in his case. Younas Khan has not filed any wealth statement despite earning income well above the threshold for filing Wealth statement. Wealth statements and return for the Tax Year 2011, therefore, needs to be enforced in his case. Though the receipts from services for Tax Year 2010 are more than those identified by this Directorate General, they have been declared under the presumptive tax regime rather than offering them for taxation under normal law. Through the Finance Act 2009, provisions of section 153 of the Income Tax Ordinance 2001 were amended and tax collected from payments made on account of services rendered made minimum tax liability. Previously, such deductions constituted full and final discharge of tax liability and receipts under the head 'services' fell under the presumptive tax regime. Thus, with effect from tax year 2010, receipts under the services are to be taxed outside the presumptive tax regime and the tax deducted thereon constitutes minimum tax liability.
In view of the quantum of receipts in the instant case, taxation of services receipts under the normal law is expected to generate tax revenue much higher than the presumptive tax regime due to the applicability of the higher slab rates and nominal expenses which might have been incurred while earning income under this head. Amendment under Section 122 is, therefore, warranted under the law.
Apart from the receipts mentioned above, he is also a Brand Ambassador of a company and has also appeared in a number of advertisements for various business enterprises. He has also been part of various international cricketing ventures such as Nottinghamshire (England), Rajasthan Royals (India), South Australia (Australia), Surrey (England), Warwickshire (England) and Yorkshire (England). As a resident individual, both the Pakistan and foreign sources of income of this cricketer are taxable in Pakistan. These are all sources of lucrative income and further information collection (about which the field formations are sufficiently empowered), could reveal the actual extent of income in the instant case. While scrutinising the enforced wealth statement, various declared assets may also be examined from the point of view of generating any income for the individual, tax profile added.
Tax data of another cricketer showed that a player has been playing for the National Cricket Team since 2003 but, as per PRAL database, has not filed any Return of Income. Tax Returns are, therefore, needed to be enforced along with wealth statement. Through the Finance Act 2009, provisions of section 153 of the Income Tax Ordinance 2001 were amended and tax collected from payments made on account of services rendered was made minimum tax liability. Previously, such deductions constituted full and final discharge of tax liability and receipts under the head 'services' fell under the presumptive tax regime. Thus, w.e.f. tax year 2010, receipts under the services are to be taxed outside the presumptive tax regime and the tax deducted thereon constitutes minimum tax liability. In view of the quantum of receipts in the instant case, taxation of services receipts under the normal law is expected to generate tax much higher than presumptive tax regime due to the applicability of the higher tax rates and nominal expenses which the individual might have incurred while earning income under this head.
Apart from the receipts mentioned above the individual has also appeared in advertisements for various companies. Additionally he has also played for various teams outside Pakistan such as Gloucestershire (England), Kolkata Knight Riders (India), Sussex (England) and Western Australia (Australia). Such international ventures are usually sources of lucrative income for the cricketers. He has also received many rewards. All these aspects need to be taken cognisance while enforcing return.
While scrutinising the enforced wealth statement, various declared assets may also be examined from the point of view of generating any income for the individual.
The first noticeable point in the case of another leading cricketer is the under-declaration of receipts for the Tax Year 2011 with the undeclared amount as high as Rs11,031,780. He should be requested to explain this discrepancy. This, however, is the discrepancy as per the information sifted out by this Directorate General from the available sources. The actual receipts of cricketer could snowball much higher if further information is collected in the light of the facts mentioned below.
He has not filed any wealth statement and return for the Tax year 2010 is also not filed as per the PRAL database. These need to be enforced immediately.
The receipts discovered by this Directorate General are all from Pakistani sources of income. However, he has also earned substantial income from a number of international ventures such as his association with the Durham (England), ICC World Xl, Kolkata Knight Riders (India), Somerset (England), Surrey (England), Worcestershire (England). As a resident individual, both the Pakistan and foreign sources of this cricketer are taxable in Pakistan. Information collection about all these sources (about which the field formations are sufficiently empowered), could reveal the actual extent of income in the instant case.
Through the Finance Act 2009, provisions of section 153 of the Income Tax Ordinance 2001 were amended and tax collected from payments made on account of services rendered made minimum tax liability. Previously, such deductions constituted full and final discharge of tax liability and receipts under the head 'services' fell under the presumptive tax regime. Thus, w.e.f. tax year 2010, receipts under the services are to be taxed outside the presumptive tax regime and the tax deducted thereon constitutes minimum tax liability. In view of the quantum of receipts in the instant case, taxation of services receipts under the normal law is expected to generate tax revenue much higher than the presumptive tax regime due to the applicability of the higher slab rates and nominal expenses which the individual might have incurred while earning income under this head.
While scrutinising the enforced wealth statement, various declared assets may also be examined from the point of view of generating any income for the individual, FBR added.
Another top cricketer has been associated with the national cricket team since 2007 but has not filed any Income Tax return as per PRAL database. Returns of income, therefore, need to be enforced immediately along with wealth statements. Through the Finance Act, 2009, provisions of section 153 of the Income Tax Ordinance, 2001 were amended and tax collected from payments made on account of services rendered made, minimum tax liability. Previously, such deductions constituted full and final discharge of tax liability and receipts under the head 'services' fell under the presumptive tax regime. Thus, w.e.f. tax year 2010, receipts under the services are to be taxed outside the presumptive tax regime and the tax deducted thereon constitutes minimum tax liability. In view of the quantum of receipts in the instant case, taxation of services receipts under the normal law is expected to generate tax revenue much higher than the presumptive tax regime due to the applicability of the higher slab rates and nominal expenses which the individual might have incurred while earning income under this head.
Apart from the receipts mentioned above, he has also played for a number of teams both in and outside Pakistan. Some of such teams are Federal Areas Leopards, Khan Research Laboratories, Rajasthan Royals (India), Rawalpindi, Rawalpindi Rams, South Australia (Bigbash League, Australia), Sylhet Royals (Bangladesh Premier League) and Zarai Taraqiati Bank Limited. Incidentally, the cricketer was declared the best bowler in the inaugural season of the Indian Premier League. As a resident individual, both his Pakistan and foreign sources of Income are taxable within Pakistan. All these aspects need to be taken cognisance while enforcing return.
While scrutinising the enforced wealth statement, various declared assets may also be examined from the point of view of generating any income for the individual, tax profile added.
The tax profile of another cricketer showed that he first played for Pakistan in 2007 but he is neither borne on tax role nor filed any return as per the PRAL database. His case needs to be brought on tax immediately and Returns of Income enforced immediately along with wealth statements.
Through the Finance Act 2009, provisions of section 153 of the Income Tax Ordinance 2001 were amended and tax collected from payments made on account of services rendered made minimum tax liability. Previously, such deductions constituted full and final discharge of tax liability and receipts under the head 'services' fell under the presumptive tax regime. Thus, w.e.f. tax year 2010, receipts under the services are to be taxed outside the presumptive tax regime and the tax deducted thereon constitutes minimum tax liability. In view of the quantum of receipts in the instant case, taxation of services receipts under the normal law is expected to generate tax revenue much higher than the presumptive tax regime due to the applicability of the higher slab rates and nominal expenses which the individual might have incurred while earning income under this head.
He is one of those cricketers who, in addition to playing in Pakistan, play a substantial part of their cricket for teams outside Pakistan. Some of the cricket teams for which he has been playing are: Scotland (English County Cricket), Barisal Burners (Bangladesh Premier League), Canterbury Dolphins (English County Cricket),, Kent (English County Cricket),, Khan Research Labs, Otago (New Zealand), Pakistan Reserves, Rawalpindi, Redco Pakistan Ltd, Surrey (English County Cricket) and Sussex (English County Cricket). The cricketing ventures outside Pakistan are normally a source lucrative income and as a resident individual, both the Pakistan and foreign sources of Income of the cricketer are taxable within Pakistan. All these aspects need to be taken cognisance while enforcing return.
While scrutinising the enforced wealth statement, various declared assets may also be examined from the point of view of generating any income for the individual, FBR's tax profiles added.