Taxation

IRA CONSULTANTS helps enterprises in formulating effective strategies for optimizing taxes, implementing innovative tax planning and effectively managing compliance. Our industry professionals have extensive domain knowledge that is complemented by technical proficiency and dedicated relationships with respective clients. Our tax professionals have a strong reputation in developing new ideas and solutions that have helped clients to improve their efficiencies and offer better services. We understand the underlying industry and business issues that our clients face which helps us to customize solutions for their specific needs.

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In the modern day world all businesses are engaged in multinational transactions and operations, they are continually challenged to manage the impact of multiple and ever-changing tax jurisdiction IRA CONSULTANTS provides comprehensive and sophisticated tax assistance in effectively structuring the impact of global taxation.

In Pakistan considering the local requirements we are offering services in following areas:

Our tax services

  • Financial statements audit
  • IFRS reporting
  • Regulatory compliance and reporting
  • Sarbanes-Oxley compliance
  • Corporate reporting improvement

Our tax services

1) Direct Tax

2) Indirect Tax

3) Transfer Pricing

1) Direct Tax

Sound business decisions need to be backed by the right tax advice. Today’s dynamic environment has led to fierce competition. Corporate entities have realized the importance of innovative tax strategies and proper planning to reduce the tax incidence, provide the much-needed cutting edge over competitors and meet the challenges of global avenues.

How IRA CONSULTANTS can help

-> Strategic Planning

  • Formulating effective and tax-efficient cross-border strategies for both inbound and overseas investments
  • Capitalizing on planning opportunities presented by local tax law as well as treaty network
  • Structuring acquisitions, divestitures and corporate reorganizations for tax optimization
  • Staying abreast of new developments within the international arena that affect clients’ businesses, both globally and locally
  • Advance rulings to lend an element of certainty to non-resident investors in their proposed transactions in Pakistan

-> Consulting and advisory

  • Analyzing the tax impact of transactions holistically having regard to direct tax, indirect tax, regulatory and transfer pricing implications
  • Providing opinions on transactions from a domestic law and tax treaty viewpoint
  • Identifying tax planning opportunities and addressing potential problem areas in the course of undertaking day to day business activities

-> Potential issues

  • You need advice on tax when structuring a group of companies
  • You need to repatriate profit
  • You want to understand double tax relief planning
  • You are planning cross-border acquisitions, disposals or reorganizations
  • You have to defend tax authorities challenge regarding thin capitalization
  • You are a local organization looking to expand overseas

-> Business restructuring

  • Conceptualization of the proposed structure in the light of business objectives
  • Structuring the reorganization – merger, spin off, acquisition or capital arrangement - from a tax and regulatory perspective

How IRA CONSULTANTS can help

  • With effective and tax efficient cross-border strategies for both local and overseas investments
  • By managing your global structural tax rate
  • By keeping you abreast of new developments within the international arena that affect your business.

IRA CONSULTANTS corporate and international tax structuring services include

  • Outbound structuring services
  • Controlled foreign companies planning
  • Country specific planning services
  • Thin capitalization solutions
  • Inbound structuring into Pakistan
  • Pathfinder service – start up services for companies entering Pakistan
  • You need to comply with the growing, and more visible tax burden
  • You require greater flexibility than your current provider can offer

How IRA CONSULTANTS can help

  • Consistent application of best practice
  • Better use of scarce, in-house resources
  • A more responsive service within agreed timescales
  • Economies of scale
  • Better communications through continuity of staffing
  • High technical quality.

Tax Valuation Services

Valuations often lie at the heart of disputes and negotiations with tax authorities. The specific demands of the tax authorities require specialist advice and detailed knowledge of their working methods and practices.

How IRA CONSULTANTS can help

  • A change in corporate structure, a disposal of assets or a new shareholding arrangements are just some of the issues that can impact business values and create tax liabilities.
  • To maximize the possible tax benefits from a transaction, the tax aspects need to be integrated at the time that the transaction is being structured.
  • In the event of a dispute with the tax authorities based on valuation, the appropriate documentation processes are essential for a swift and successful resolution.

through the regulatory framework and concurrently supporting their business initiatives.

How IRA CONSULTANTS can help

  • Structuring and implementing inbound and outbound investments
  • Exchange control, corporate laws and foreign investment advisory
  • Entity structuring including advises on the choice of entry vehicle such as a strategic alliance partner, branch, subsidiary, joint venture etc.
  • Processing regulatory approvals including Board of Investment, State Bank of Pakistan and other organizations.

Personal Taxation

The constantly changing tax legislations and complex domicile status issues have made it essential for high net worth individuals, owner-managers of businesses, corporate directors and executives to seek expert personal tax advice.

-> Potential issues

  • You want to minimize your Income Tax liabilities
  • You are a family business and seek bespoke advice on issues ranging from governance through to re-organization and tax planning
  • You want an effective remuneration plan for your company directors
  • You wish to know about efficient cross border planning strategies

-> Potential issues

  • You need to maximize indirect tax recovery.
  • You want to increase margins.
  • You want to ensure your group maximizes efficiencies for indirect taxes.
  • You want to improve cash flow.
  • Your organization has a high level of customs or excise duty and you want to ensure you don’t overpay.

Sales Tax is a tax on value addition and a multi point tax, which is levied at every stage of sale. Sales Tax is not just a taxation issue; it spans the entire value addition process. It is collected at the stage of manufacture/resale and contemplates rebating of tax paid on inputs and purchases. It provides a broad tax base and more and more businesses will come in its net. Federal Excise Duty is a levy on manufacturing sector as well as on services sector. Customs Duty is levied on items imported into Pakistan, various items are exempted from Customs Duty, and at the same time some are levied at higher and lower rates, thus it requires expert advice.

How IRA CONSULTANTS can help

-> Strategic Consulting and Advisory

  • Advice on classification, valuation, applicability of taxes on transactions and admissibility to tax benefits/exemptions
  • Opinions on indirect tax issues
  • Identification of innovative tax planning opportunities
  • Formulating indirect tax efficient business models

-> Potential issues

  • You need help and guidance with documentation
  • The taxation authorities are investigating your approach to transfer pricing
  • You want to coordinate your worldwide transfer pricing policies
  • You are looking for coordinated transfer planning advice

transfer pricing practices under increased scrutiny by tax authorities. Extensive transfer pricing regulations for Pakistan are in place according to which an arm’s length standard is applied on transactions between associates.

Transfer pricing has become the most difficult area of international taxation. We advise multinational companies on the most appropriate transfer pricing policy to be followed in accordance with the Income Tax Ordinance, 2001 and Income Tax Rules, 2002.

Our approach is marked by innovation and the resulting policy is one that is the most practical. It focuses on prices charged for related – party transactions, including inter – company transfer of tangible goods, intangible property services, loans and leases. It affects nearly every aspect of multinational operations – R&D manufacturing, marketing and distribution, after-sale services, and of course, an organization’s worldwide tax burden.

How IRA CONSULTANTS can help

  • Detailed functional analysis of selected entities and related industry analysis
  • Comparables and benchmarking analysis exercises
  • Representation before tax authorities for transfer pricing audit defense
  • Management of international transfer pricing projects from Pakistan perspective

-> DEVELOPMENT ADVISORY

  • Fund Management
  • Financial Monitoring
  • Pre-award Assessment
  • Programmers Assessment
  • Monitoring and Evaluation
  • Grants Advisory Services
  • Organizational Capacity Assessment
  • Value for Money Analysis