Educating Business Taxpayer

After finance act, 2004, I was trying to convince my employer regarding his apprehensions about taxes. I said, “Sir now the Government has done almost every effort to facilitate the taxpayer in the payment of taxes.” He replied. “We are sweating to earn the money through our business and in future the commissioners will not be sweating in collecting the taxes because they have got LTU, MTU and STU air-conditioned on the premise that we will further sweat to pay taxes.” He continued, “In order to increase the profit and deposits of NBP we are required to submit the tax payment challan and sales tax return in NBP only and not in any other Bank.” He further showed his emotions by telling the fact, “Government is not bothered that we are employing staff merely to do their working under the name Taxation department within a commercial organisation and the obligation keeps on increasing under the name of presumptive tax regime/WHT agents.”

I was just thinking about the queries for an appropriate answer. He suddenly told me, “Have you ever given deep thought over taxation?” I immediately replied, “Yes”. He unexpectedly brought a question paper which is as follows.

Deep Thoughts on Taxes

1.