Advance Professional Development Program 2016/17 Case Study Karachi Tax Bar Association February 23, 2017 Contact Address: Presented by: Mohammad Rehan Siddiqui Partner FCA, ACMA, LLB 4th Floor, Central Hotel Building Civil Lines, Mereweather Road Karachi - Pakistan Phone: 021 – 35644872-7 Fax: 021 – 35694573 E-mail: rehan@bakertillymiq.com

Brief of the Company The ABC company is a medium sized private limited company incorporated in Pakistan under Companies Ordinance, 1984. The company is involved in marketing consultancy business. Other companies appoint the company as its marketing consultant. Selection of case under section 176 of the income tax ordinance, 2001 The ABC company was selected in audit under section 176(1) by the deputy Commissioner Inland Revenue. He called upon the records regarding various expenses and income which he deemed suitable for audit.

Audit Proceedings Conducted by Deputy Commissioner Inland Revenue (DCIR) DCIR initiated the proceedings by calling records and finalized its order thereafter. The Company appropriately furnished sufficient documentary evidence before DCIR and went to the Commissioner Inland Revenue, Appeals, Karachi [CIR(A)] against the order finalized by the DCIR. On certain issues which the company consider arbitrary and unjustified. Tax Declared Tax paid and claimed by the company in return was Rs. 495,000/- and allowed by the DCIR in order was Rs. 395,000/-

Thank You for Your Time and Participation