اردو

Home / Practice / TX A The Pakistan tax system and its administration / Worksheet

Practise online

TX A The Pakistan tax system and its administration

Written by Saad Rahman (ACCA)

ACCA · Taxation (Pakistan) · 8 questions

Name: ____________________   Date: ____________

  1. Which of these is a direct tax?

    • A Customs duty
    • B Income tax
    • C Sales tax
    • D Excise duty

  2. Which body administers federal taxes such as income tax and federal sales tax in Pakistan?

    • A The Supreme Court
    • B The Provincial Assembly
    • C The State Bank
    • D The Federal Board of Revenue

  3. What is the legal effect of an FBR circular?

    • A It is a statute
    • B It binds the courts
    • C It explains how the FBR will apply the law but does not change the law
    • D It overrides the Ordinance

  4. What is the difference between tax avoidance and tax evasion?

    • A Avoidance is legal planning to reduce tax, and evasion is illegal
    • B They are the same
    • C Evasion is legal and avoidance is illegal
    • D Both are always legal

  5. What does a system of self-assessment mean?

    • A The taxpayer does not need to file
    • B The tax authority calculates all tax
    • C Tax is paid only after an audit
    • D The taxpayer calculates the tax and files a return that is treated as the assessment

  6. When is a best judgement assessment made?

    • A When a company is formed
    • B When a return is filed on time
    • C When the tax is refunded
    • D When a person has not filed a return and the Commissioner issues a notice

  7. Where is the first appeal against an assessment normally made?

    • A To the Commissioner (Appeals)
    • B To the FBR chairman only
    • C Directly to the High Court
    • D To the company secretary

  8. Withholding tax is deducted at 15 percent from payments to persons on the Active Taxpayers' List. What is the rate for a person who is not on the list?

    • A 15 percent
    • B 7.5 percent
    • C Nil
    • D 30 percent

Answer key

1. B, 2. D, 3. C, 4. A, 5. D, 6. D, 7. A, 8. D

  1. A direct tax is charged on the person who bears it. Sales tax is collected from customers.

  2. The FBR is the federal tax authority.

  3. A taxpayer can challenge a circular that goes beyond the law.

  4. Evasion involves hiding income or giving false information.

  5. The Commissioner may later enquire into the return.

  6. The Commissioner uses the information available.

  7. A further appeal can be made to the Appellate Tribunal.

  8. Rates in the tax table double for persons not on the ATL.