Tax planning is a core issue for corporate body and individual for tax expenditure management. Every person either individual or corporate body always tries to keep his or its tax expense at a minimum level. For this reason one has to be very much updated, As rules & regulations of income tax changes in every year depending on economy’s requirements. Tax incentives play a vital role in tax planning. Corporate Social responsibility (CSR) is a new concept in Bangladesh. People know a very little about CSR activities and which activities are entitled for tax rebates. There is a policy shift of reduced tax rate instead of tax holidays in 48 sectors. All these issues will be highlighted and explained during the training session. Therefore, the training session will provide opportunities to learn for those who want to reduce tax liability and to avoid unnecessary litigation.
How participants will benefit after the course:
The course will provide an overall idea of corporate tax as well as individual tax. After completion of the course, participants would be capable to keep their tax liability as minimum as possible by learning risk areas and by utilizing tax incentives in favour of them. Moreover, corporate houses will be able to learn appropriate CSR activities entitled for tax rebate. A new investor would have a choice of newly introduced reduced rate system instead of tax holidays. Indeed reduced rate system is much better than tax holiday. An entrepreneur would be benefited knowing all the updated incentives packages.
Workshop topics to be covered:
1. An overview of Income Tax
- What is tax? Why should we pay tax?
- Important terms & definitions
- Recent change in the tax rate
- Audit provision of universal self (sec-82BB) and risk areas for assesses
- Penalty for non-submission of return and penalty of noncompliance by bank and financial institutions
- How deduction and collection of source may be a means for reducing tax liability?
2. Existing Incentives packages:
- Reduced tax rate-A new approach of Existing tax holiday’s system.
- Comparison between reduced rate and tax holidays-which one is better option for corporate sectors?
- Risk area of incentive packages of Investment (19A, 19AA, 19BBB).
- A surgery of unexplained income investment (19AAA) in capital market and how one can get maximum tax benefit.
- Share capital gain (Sec-32(7))
- Income tax fully exempt from tax.
- Tax exemption in respect of foreign remittance.
3. How fiscal incentives could be used to minimize tax liability for corporate sector as well as individual?
- Tax rebate incentives for assess being resident.
- Corporate social responsibilities (what it is and related SRO)
- What CSR activities are entitled for tax rebate?
- Initial depreciation & accelerating depreciation.
- Incentives for salaried person.
4(a). Risk areas which to be addressed care fully for minimizing tax liability
- Personal loan (sec-19(21))
- Trading liability
- Entertainment expenses (rule-65c)
- Sampling expenses
- Any kind of gift
- Equity must be received by cross cheque or bank transfer (sec-19(24))
4(b). Areas of litigation and how it can be minimized
- Failure to pay advance tax (sec-125),
- Penalty for non compliance with notice(sec-126)
- Failure to pay tax on the basis of return (Sec-127)
- Penalty for concealment of income (Sec-128)
- Punishment for non-compliance of certain obligations (Sec-164)
- Punishment for false statement in verification (Sec-165)
- Punishment for concealment of income (Sec-166)
- Appeal forum-Appellate Joint Commissioner/The Commissioner (Appeals), Appellate tribunal, Trial by Special judge, High court Division and Appellate Division.