FBR reminds taxpayers to file income tax returns before 8th December, 2020

Federal Board of Revenue (FBR) has again reminded the taxpayers to file their Annual Income Tax Returns before the last date i.e 8th December, 2020 as there will be no further extension in date. FBR has further clarified that according to Section-114 of Income Tax Ordinance-2001 whoever owns immoveable property with a land area of five hundred square yards or more or owns a motor vehicle having engine capacity above 1000cc is liable to file Annual Income Tax Returns. Further, holder of commercial or industrial connection of electricity, where the amount of annual bill exceeds rupees five hundred thousand or an individual whose income from business exceeds rupees three hundred thousand is also required to furnish return of income. The salaried person having annual income of Rupees six hundred thousand or more is also liable to file the returns.

FBR has warned that those who fall in taxable income and don’t file return will be dealt strictly in accordance with law.

SECP registered 2365 new companies in September, 2020

The Securities and Exchange Commission of Pakistan (SECP) registered 2,365 new companies in September 2020, indicating an increase of 69 % as compared to corresponding period last year.

Out of these newly registered, 68 percent companies were registered as private limited companies, 29% were registered as single member companies and three percent were registered as public unlisted companies, not for profit associations, under section 43 and limited liability partnership (LLP). This month 99% companies registered online in September 2020, while 40% of the companies were registered same day.

The trading sector took the lead with incorporation of 414 companies, followed by construction with 294 companies. A total 289 companies were registered in IT sector, 226 in services, 139 in the real estate, 87 companies in food and beverages, 73 in corporate agricultural farming, 70 in ecommerce and 69 companies registered in tourism sector. Sixty three companies registered in education sector, 61 in engineering, 59 in pharmaceutical, 46 in textile, 42 in transport, 38 in marketing and advertisement, 37 in chemical, 28 in logging, 35 in mining & quarrying, 33 in healthcare, 26 companies in each power generation,  cables & electric goods, 24 each in fuel & energy, 21 in communications, 19 each in auto & allied and paper/ board, 17 each in broadcasting & telecasting, and cosmetics & toiletries, 14 in steel and allied and 73 companies were registered in other sectors.

During September, foreign investment has been reported in 43 new companies. These companies have foreign investors from, Australia, China, Egypt, Germany, Greece, Iran, Italy, Japan, the Netherlands, Norway, Saudi Arabia, Singapore, the UAE, the UK, the US and Yamen.

The highest numbers of companies, i.e. 812 were registered in Islamabad, followed by 764 and 348 companies registered in Lahore and Karachi respectively. The CROs in Peshawar, Multan, Faisalabad, Gilgit-Baltistan, Quetta and Sukkur registered 183, 97, 64, 62, 33 and 02 companies, respectively.

Companies Act 2013 – The Companies amendment ordinance 2020

President of Pakistan has promulgated the Companies (second amendment) Ordinance, 2020 on July 7, 2020. This ordinance has withdrawn some amendments that were introduced in May 2020. You can also read our commentary on amendments introduced earlier in May 2020. The significant amendments introduced by the companies (second amendment) ordinance 2020 are presented in this publication.

  1. Disqualification Order 172

Earlier in May 2020, SECP powers to disqualify a director in the following cases were taken away;

  1. Against a person who entered into plea bargain arrangements with NAB;
  2. The affairs of the company of which he is a director have been conducted in a manner which has deprived the shareholders thereof of a reasonable return;
  3. That it is expedient in the public interest so to do.

Now through second amendment ordinance 2020 in July 2020, SECP has again been empowered to disqualify a director in the following cases:

  1. Against a person who entered into plea bargain arrangements with NAB;
  2. That it is expedient in the public interest so to do.
  3. Protection to Independent and Non-Executive Directors 181

Earlier in May 2020, protection available to independent and non-executive directors was removed.

Now through the second amendment ordinance 2020 in July 2020, this amendment has been withdrawn and original section restored.

  1. Appointment of Chief Executive by Govt. in Public Sector Company Sec. 186, 187

Earlier in May 2020, Government power to appoint first and subsequent CEO of the public sector company in a specified manner was withdrawn.

In July through the second amendment ordinance 2020, this amendment has been withdrawn and the original section restored.

  1. Compromise with Creditors and Members Sec. 279, 280

Earlier in May 2020, the powers relevant to compromise arrangement between the Company and its creditors were taken away from SECP and given to Court.

In July through the second amendment ordinance 2020, this amendment has been withdrawn and original sections restored.

  1. Reconstruction and Amalgamation Sec. 282, 283

Earlier in May 2020, the powers relevant to Reconstruction and Amalgamation arrangements were transferred to the court.

In July through the second amendment ordinance 2020, this amendment has been withdrawn and the original section restored.

  1. Companies’ Global Register of Beneficial Ownership Sec. 452

Earlier in May 2020, this requirement was changed substantially and only those persons who have 10% or more shareholding in a foreign company were required to report this fact to the company.

In July through the second amendment ordinance 2020, this amendment has been withdrawn and the original section restored. Now there is no more minimum requirement of 10%.

  1. Security Clearance of Shareholder and Director Sec. 461

Earlier in May 2020, SECP power to require security clearance of any shareholder, director, or any other office-bearer of a company or class of companies was taken away.

In July through the second amendment ordinance 2020, this amendment has been withdrawn and the original section restored.