Tag Archives: income

IRIS FBR miscalculated the income tax liability | Instant News


KARACHI: The Federal Revenue Council (FBR) has not corrected a technical error in the online return filing system that is now causing tax calculation errors among other things, tax practitioners said on Saturday.

Each year the tax practitioner points out the technical problems encountered when applying for returns on the IRIS portal.

“But this problem is still there today,” said the Karachi Tax Supervisory Association (KTBA) in a statement. Calculation errors appeared on the IRIS portal when filing income tax returns for the 2020 tax year online, the association said.

“We have conveyed this matter by letter to Member Inland Revenue (IR) Operations, but nothing,” said KTBA. “Difficulties filing income tax returns for the tax year were also discussed with Member IR Operations during last week’s meeting.”

KTBA said the main problem was the income tax work error under the minimum tax regime in place for the 2020 tax year. Although the law has been amended, FBR has not issued instructions to address the problem on the portal, he said.

“The minimum tax-related employment represents an inaccurate amount of tax, so the return is flawed and there is a need to fix the job,” KTBA said.

In an income tax circular dated September 30, FBR made a major decision for the first time and allowed re-submissions until December 8 with a statutory deadline of 90 days.

Typically, the last date for filing an annual tax return is September 30 for taxpayers including salaried individuals and business individuals, associations of persons and companies with special years. For companies that have a financial year that ends on June 30, the return filing date is December 30 of each year.

Over the past few years, it has become a tradition that FBR has repeatedly extended the deadline for submissions for various reasons, including complaints regarding the bungled tax system.

KTBA further said tax work on yields from Behbood’s savings certificates, retirement benefits and shuhada’s welfare account is still wrong if the average tax rate exceeds 10 percent of total income.

Claims against withholding tax by stock exchanges are not available on the refund form for the 2020 tax year. The tax bar shows a new column in the online form. Income tax treatment for small companies is different and is allowed at a lower rate. “However, the corporate tax rate imposed by the portal is not appropriate if there are small companies that are taxed and the rates are lowered,” said KTBA.

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New Zealand tourism: a $ 12.9 billion spending gap without international visitors | Instant News


Business

Tourists stopped coming from abroad when the border closed in March. Photo / Mike Scott

New Zealand faces a $ 12.9 billion a year income gap without international visitors.

Research for New Zealand Tourism shows that it takes 12 overnight trips from the Kiwi to match the expenditure of one international visitor and foreign tourists spend up to three times as much a day than locals.

International visitors spend $ 232 a day, Kiwis traveling around the country spend $ 155 a day while locals spend $ 74 a day.

“Kiwis do a wonderful job traveling within the country but New Zealand will need high-value international visitors to shore up the sector and economy beyond weekends and public holidays,” said Tourism NZ chief executive Stephen England-Hall.

Total international visitor spending was $ 17.2 billion in the 12 months ended March last year. New Zealanders spend $ 23.7 billion on domestic holidays and it is estimated that because they are unable to holiday abroad, this will be boosted by $ 4.2 billion – half of what Kiwis spent on overseas trips last year.

The study by Tourism NZ – the government agency – and economist, Fresh Info, draws data from the Ministry of Business, Innovation and Employment and Stats NZ.

This suggests Government revenue is boosted by $ 849 for each international visitor. New Zealand tourists pay around $ 11 a day at GST while international visitors pay $ 26 a day.

Every $ 178,000 of tourism expenditure creates one job and this equates to 42 international visitors or 480 overnight domestic trips.

England-Hall said tourism was essential to the country’s recovery and the research would clear up some misconceptions.

“Tourism is a major employer of women and youth and an average of every $ 178,000 of visitor expenditure creates one new job. This job is important for our region, especially where there may be few other job options.”

Chief executive of Tourism New Zealand Stephen England-Hall.  Photo / Nick Reed
Chief executive of Tourism New Zealand Stephen England-Hall. Photo / Nick Reed

“Embracing technology and enhancing digital capabilities can increase tourism productivity even further. This can result in higher wages and better standards of living, especially for our regional communities.”

England-Hall said research shows there is still some work to be done to become more environmentally friendly.

“The sector is doing some amazing things to reduce or offset carbon with many operators moving towards zero carbon. While there is still work to be done, tourism’s carbon efficiency is improving, and its intensity is lower than that of other large sectors including agriculture, utilities and mining. “

He said the study results would be shared with the Government and industry with more research expected to be carried out in the coming months.

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The end of the lockdown has done little to help hit hardest-hit UK earnings – studies | Instant News


LONDON (Reuters) – Lifting the first COVID-19 lockdown earlier this year did little to boost the incomes of people in Britain who are losing to restrictions, and low-income households have taken the brunt of the brunt, a think tank. said on Sunday.

With unemployment rising in the UK, the proportion of adults reporting a fall in income only increased slightly to 23% between July and September from 27% in the April-June period, the Resolution Foundation said in a report.

Three in ten adults with income difficulties cannot afford some basic household expenses such as heating, fresh fruit and vegetables, the report said.

“The government must strengthen the social safety net that more families rely on,” said Karl Handscomb, an economist at the Resolution Foundation.

Adults in the top 20% income group, or an average of 64,000 pounds ($ 84,400) a year, were more likely to see their family budgets increase than deteriorate from before the pandemic because many managed to save more.

In contrast, low-income households with 13,000 pounds per year were more than twice as likely to experience budget cuts.

The report is based on a survey of 6,061 adults between September 17 and 22.

Prime Minister Boris Johnson has ordered a new month-long lockdown for Britain that ends on December 2. Other parts of the UK are also under coronavirus restrictions.

Written by William Schomberg, Editing by Hugh Lawson

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Wall of money poised for a post-pandemic economy | | Instant News


There is at least one thing that has not changed the pandemic: Private equity companies are entering the Covid-19 crisis with cash, and they too will leave full pockets.

What’s happening: As the coronavirus shuts down businesses and sends the global economy up, there are fears that private equity – which surged after the 2008 financial crisis – could cause problems. To increase profits, these companies often strike deals that burden takeover targets with large amounts of debt. If the value of these firms falls on weaker sales, their owners of private equity could be in trouble.

According to Bain & Company, more than 75% of US private equity deals last year were “heavily leveraged,” meaning the company took on debt at least six times its operating income.

Several private equity-backed companies are in serious trouble and must seek government assistance. Yet thanks to unprecedented central bank assistance, debt financing remains cheap.

Private equity emerged from spring and summer with its reputation intact. Now, fundraising is on the rise again.

“Private equities are completely flooded with liquidity,” Viswas Raghavan, JPMorgan Chase’s head of Europe, Middle East and Africa, told me.

At the end of last year, dry powders – the industry speak for the money it still had to invest – hit a record $ 2.5 trillion, according to Bain. Manoj Mahenthiran, leader of US private equity at PwC, told me he thought the money remained at that level, or even higher.

Over the past decade, as interest rates have remained low, institutional investors such as pension funds have increasingly turned to private equity as a source of higher returns. With the central bank vowing to keep interest rates near future lows, that pipeline of support is only poised to expand.

The big question is where these companies intend to park all their money. High-growth assets such as technology and healthcare companies remain favorites of private equity. But many have become very expensive, making it harder to find good deals.

Some funds are eyeing assets in the hotel or retail sector, which are struggling this year. Scott Kleinman, vice president of Apollo Global Management, said at a conference last month that Apollo had invested about $ 5 billion in the aviation and aerospace sector over the previous six months. However, Mahenthiran said there was no evidence that private equity funds were pouring into this depressed segment of the economy.

Big picture: What’s clear is that the pandemic is not undermining the influence of growing private equity.

“The economy definitely tends toward private equity ownership,” said Mahenthiran. Millions of people are employed by PE-owned businesses.

Ludovic Phalippou, a professor of financial economics at the University of Oxford, said academics are still analyzing the consequences of more private capital in the system. Private companies do not face as stringent disclosure requirements as public companies, he said.

Private equity ownership also leads to an intense focus on extracting profits, according to Phalippou – a different model of the increasingly popular “stakeholder capitalism” that encourages executives to focus on employee welfare and social impact, as well as shareholder returns.

“This is a very different world that is taking shape,” he told me.

Agree or disagree? For Great Britain, the clock is ticking

Britain is running out of time to reach a trade deal with the European Union. Real.

Sights: When Britain left the bloc earlier this year, the two sides agreed on a transitional period that would last until 31 December. Nearly a year later, the British government is still locked in talks with its biggest trading partners – and they are down to the wires.

The EU leaders’ call on Thursday is seen as a new deadline for reaching a draft agreement. If the talks go on for any longer, there will start major logistical problems associated with his agreement.

However, big differences remain, raising prospects that Britain could end the year without a deal. That would take many businesses by surprise and could trigger major disruptions at the border.

“When one more week of negotiations comes and goes, it’s clear we’re not there yet, and the same set of core issues that have divided the talks for much of this year remain, for now, unresolved,” said ING economist James Smith. Friday clients.

Currently, investors think London is most likely to get a deal that includes trading in goods. However, there is a lot of uncertainty coming into the market, with the potential for a large move in the pound depending on the outcome.

Sterling could rise as high as $ 1.35 if a deal is reached, Nomura currency analyst Jordan Rochester told me. It has been trading near $ 1.31 in the last few days. Without a deal, he said, the currency could plunge to $ 1.20.

“The market wouldn’t be ready for a no-deal Brexit,” Rochester said. “I think you will get a significant withdrawal.”

Next

Monday: Japanese GDP; Chinese retail sales and industrial production; JD.com, Casper Sleep Income, Tyson Foods, Baidu and SmileDirectClub

Tuesday: US retail sales and industrial production; Home Depot, Kohl and Walmart income

Wednesday: US building and housing permits commenced; Income Lowe, Target, TJX, L Brands, and Nvidia

Thursday: EU leaders are calling for; US initial jobless claims and existing home sales; Campbell Soup, Macy’s and Williams-Sonoma’s income

Friday: G20 finance ministers meeting; Earnings Foot Locker

– Hanna Ziady contributed reporting.

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The end of the lockdown has done little to help hit hardest-hit UK earnings – studies | Instant News


FILE PHOTOS: View of the Canary Wharf business district in London, England, October 14, 2020. REUTERS / Matthew Childs

LONDON (Reuters) – Lifting the first COVID-19 lockdown earlier this year did little to boost the incomes of people in Britain who are losing to restrictions, and low-income households have taken the brunt of the brunt, a think tank. said on Sunday.

With unemployment rising in the UK, the proportion of adults reporting a fall in income only increased slightly to 23% between July and September from 27% in the April-June period, the Resolution Foundation said in a report.

Three in ten adults with income difficulties cannot afford some basic household expenses such as heating, fresh fruit and vegetables, the report said.

“The government must strengthen the social safety net that more families rely on,” said Karl Handscomb, an economist at the Resolution Foundation.

Adults in the top 20% income group, or an average of 64,000 pounds ($ 84,400) a year, were more likely to see their family budgets increase than deteriorate from before the pandemic because many managed to save more.

In contrast, low-income households with 13,000 pounds per year were more than twice as likely to experience budget cuts.

The report is based on a survey of 6,061 adults between September 17 and 22.

Prime Minister Boris Johnson has ordered a new month-long lockdown for Britain that ends on December 2. Other parts of the UK are also under coronavirus restrictions.

Written by William Schomberg, Editing by Hugh Lawson

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