FIN623 GDB 1 Solution and Discussion

Total Marks 5
Starting Date Thursday, November 21, 2019
Closing Date Wednesday, November 27, 2019
Status Open
Question Title Taxation Management
Question Description

Briefly answer the following questions. (2 + 1 + 1)

Why tax avoidance can be favored against tax evasion?
Which tax structure is levied in Pakistan for the taxation of income of individuals?
Mr. Log is the cultivator of wheat and uses it as raw material in his business. Profit and loss account of Mr. Log for the year ended June 30, 2019 showed the net profit of Rs. 4,350,000. The wheat processed in flour mill, if purchased from open market, would have cost to Mr. Log Rs. 1,500,000. What would be the taxable income of Mr. Log, if wheat is not ordinarily sold in the market? (Show complete calculations)

@zareen
government by the persons (juristic or natural) on whom it is imposed. … Taxable income under the individual Income tax consists of income derived from … evasion and avoidance that are widespread in tax systems. … pace of changes in economic structure and productivity in the past might have favored a fairly benign.
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