Taxation System in Pakistan

Which statement regarding tax depreciation is most accurate?

A. Accounting depreciation and tax depreciation are always identical
B. Tax depreciation is allowed only if accounting depreciation is charged
C. Tax depreciation is determined under tax law irrespective of accounting depreciation
D. Accounting depreciation is always deductible for tax purposes

An employer pays an employee's personal electricity bill directly. The amount shall generally be treated as:

A) Reimbursement only
B) Perquisite forming part of salary
C) Dividend income
D) Income from property

A new clause (19DA) is proposed to define “electronically readable format” as any digital format in
which data is structured so that it can be automatically read, extracted, validated and processed by
computer systems without human intervention, including spreadsheet formats (such as CSV or XLSX),
XML, XBRL and JSON, but excluding formats designed primarily for human readability such as PDF,
scanned images or photographs. The definition supports the proposed requirement for companies to
file machine-readable financial statements under section 114.

Limited liability partnerships proposed to be included in the definition of 'company' for income tax purposes.

Which of the following is the strongest evidence supporting a claim of gift?

A) Oral statement of recipient
B) Cash receipt without donor details
C) Gift deed and banking transaction record
D) Affidavit of recipient only

A taxpayer purchases goods from an unregistered supplier. The sales tax charged on the invoice is:

A) Fully adjustable
B) Adjustable after registration of purchaser
C) Not adjustable as input tax
D) Refundable by FBR

A registered person purchases goods for resale and pays input tax. The goods are later given away as free samples. The input tax:

A. Payable as a normal sale
B. Automatically becomes output tax
C. Is refunded immediately
D. Is ignored

Which statement is always correct?

A. The person who pays sales tax to the government always bears its burden.
B. The person who bears the burden always remits the tax.
C. The legal incidence and economic incidence may fall on different persons.
D. Sales tax can never be shifted forward.