Career as Income tax Consultant

[acer]

I want to take a career as an Income tax consultant. Please guide what qualification I need and what I need to do to practice income tax in Pakistan?

[acer]

its urgent please someone give practical guidance.

[awaisaftab]

If you only want to become Income Tax consultant then no specific qualification is required. You may open your office or use your contracts for providing consultancy in Income Tax . But if you want to become Income Tax Practitioner then you must hold a specific qualification as defined in Income Tax Rules,2002. The difference is consultant and Income Tax Practitioner is that as consultant you file all statements and returns of your client as well as perform function of e-filling and also give consultancy and legal opinion about tax law but you cannot fight a case of your customer or client before income tax tribunal but as Income Tax Practitioner you can fight tax cases of your clients before income tax tribunal as well as in superior courts i.e high court and supreme court.

<b>Prescribed qualification for registration as an income tax</b>
<b>practitioner.- </b> (1)

(1) For the purposes of the definition of “income tax practitioner” in
sub-section (11) of section 223, a person applying for registration as an income
tax practitioner shall-
(a) possess one of the following qualifications, namely-
(i) a degree in Law at least in the second division, a
degree in Commerce (with Income Tax Law and
Accounting or Higher Auditing as subjects or
parts of subjects, whether compulsory or
optional) or a degree in Business Administration
or Business Management (with Accounting and
Income Tax law as subjects or parts of subjects,
whether compulsory or optional) conferred by a
prescribed institution; or
(ii) a pass in a prescribed accounting examination.
(b) have worked for a continuous period of one year as an
apprentice under the supervision of a chartered
accountant, cost and management accountant, legal
practitioners entitled to practice in a civil court in
Pakistan 1[or] a registered income tax practitioner 2[and

having been registered as a chartered accountant, cost
and management accountant, legal practitioner and
income tax practitioner] for a period of not less than ten
years.
(2) For the purposes of sub-clause (i) of clause (a) of sub-rule (1), a
degree conferred by a prescribed institution that is a foreign university or
institution shall only qualify if the degree is equivalent to a degree conferred by a
Pakistani university and is recognised as such by a Pakistani university.
(3) In this rule,
(a) “Institute of Chartered Accountants of Pakistan” means
the Institute of Chartered Accountants of Pakistan
constituted under the Chartered Accountants Ordinance,
1961;
(b) “foreign institution” means any institution in a foreign
country authorised to grant a degree under the laws of
the country;
(c) “foreign university” means any university in a foreign
country incorporated by law, or accredited or affiliated by
any association of universities or college in the country
or by any authority formed for that purpose under the
laws of that country;
(d) “prescribed accounting examination” means any of the
following examinations, namely-
(i) an examination equivalent to the intermediate
examination conducted by the Institute of
Chartered Accountants of Pakistan;
(ii) an examination equivalent to the intermediate
examination conducted by any foreign institute
of chartered accountants and recognised by the
Institute of Chartered Accountants of Pakistan
as equivalent to its intermediate certificate;
(iii) an examination equivalent the final examination
conducted by the Association of Certified and
Corporate Accountants, London; or
(iv) Part-III of examination for Cost and
Management Accountants conducted by the
Institute of Cost and Management Accountants
under the Cost and Management Accountants
Act, 1966 (XIV of 1966); and
(v) Certified public accountants of USA.

(e) “prescribed institution” means a university incorporated
by any law in force in Pakistan or Azad Kashmir, a
foreign university or a foreign institution.


So if you are a C.A Inter or have passed first 3 stages of ICMA and have worked with a charted accountant,Cost and Management Accountant or Income Tax Practitioner then you may register as Income Tax Practitioner also.

For the purpose of registration as Income Tax practitioner please see Income Tax Rules,2002.

Regards,

Awais Aftab

[acer]

Thanks Awais Aftab for your detail reply. I think the most sensible route is to do qualify part 3 of icma. Since i am a MBA i will get exemptions also.
So after completing part 3 I have to work for 1 year in a CA firm or a law firm than I can apply for a license. What do you think is the scope of income tax practitioner in Pakistan?

[awaisaftab]

There was some errors in my last post I have edited it. You may read it again. If you fulfill above criteria defined in clause (i) then you not need to pass 3 stages of ICMA or don C.A Inter just work as intern with ACA,ACMA or income tax practitioner and start your career. There is good scope is for both tax consultants and income tax practitioners but to become a good tax consultants and income tax practitioner you have to need do ICMA or CA or LLB. Many tax consultants and income tax practitioners are also working as consultant in corporate laws.

Regards,

Awais Aftab

[acer]

Which is the best place to undertake Income tax practitioner training..i have contacted CA firms but they only keep CA trainees. Who is the best income tax trainer in Karachi. Any idea?

[awaisaftab]

I have seen your profile you live in Karachi and I live in Islamabad I do not have any knowledge of karachi. You may get help from Faisal Desprado, who is memmber of the forum and live in Karachi. You are right that CA firms do not provide training to income tax internees. Ussually this training is provided by lawyers practicing as Income Tax Practitioners. Majority of I.T.P is lawyer(more than 90%). Hence ussually lawers do not have knowledge of accounts and maths so they hire B.Commers, M.B.A's as internees.

If you have visited any court you have found many boards of lawers describing that they are practicing in income tax,sales tax and other taxes.

Very unfortunately only few dozens ACMA's and C.A's in whole country practicing as I.T.P most of them practicing as I.T consultant and do not hire trainees who want to become I.T.P.

Regards,

Awais Aftab

[acer]

thanks for your advice

[acer]

Awais you are certainly right that lawyers are mostly ITP's. They are most willing to hire BCom as an internees. But the main thing is what is the scope of I.T consultants/practitioners here. Someone have any idea how much do they earn? I have heard that internees salary are very low and even after you do ur training you do not earn much unless you are doing on your own.

[awaisaftab]

Acer you are right that ITP's pay too low to internees. But C.A firms also do not pay good to internees. Only some C.A firms pay good stipends to internee students. But if you want to do some thing in future please do not care of it. Just join a ITP and start your career. ITP's and Tax Consultant ussually earn good but it depends upon many things such as on your fate,your contacts,your personal relations,your grip on tax laws,your repotation and lot many things.
You should must have a strong hold on tax laws.

Regrds,

Awais Aftab

[awaisaftab]

Acer you are right that ITP's pay too low to internees. But C.A firms also do not pay good to internees. Only some C.A firms pay good stipends to internee students. But if you want to do some thing in future please do not care of it. Just join a ITP and start your career. ITP's and Tax Consultant ussually earn good but it depends upon many things such as on your fate,your contacts,your personal relations,your grip on tax laws,your repotation and lot many things.
You should must have a strong hold on tax laws.

Regrds,

Awais Aftab

[AWAIS KHILJI]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by awaisaftab</i>
<br />If you only want to become Income Tax consultant then no specific qualification is required. You may open your office or use your contracts for providing consultancy in Income Tax . But if you want to become Income Tax Practitioner then you must hold a specific qualification as defined in Income Tax Rules,2002. The difference is consultant and Income Tax Practitioner is that as consultant you file all statements and returns of your client as well as perform function of e-filling and also give consultancy and legal opinion about tax law but you cannot fight a case of your customer or client before income tax tribunal but as Income Tax Practitioner you can fight tax cases of your clients before income tax tribunal as well as in superior courts i.e high court and supreme court.

<b>Prescribed qualification for registration as an income tax</b>
<b>practitioner.- </b> (1)

(1) For the purposes of the definition of “income tax practitioner” in
sub-section (11) of section 223, a person applying for registration as an income
tax practitioner shall-
(a) possess one of the following qualifications, namely-
(i) a degree in Law at least in the second division, a
degree in Commerce (with Income Tax Law and
Accounting or Higher Auditing as subjects or
parts of subjects, whether compulsory or
optional) or a degree in Business Administration
or Business Management (with Accounting and
Income Tax law as subjects or parts of subjects,
whether compulsory or optional) conferred by a
prescribed institution; or
(ii) a pass in a prescribed accounting examination.
(b) have worked for a continuous period of one year as an
apprentice under the supervision of a chartered
accountant, cost and management accountant, legal
practitioners entitled to practice in a civil court in
Pakistan 1[or] a registered income tax practitioner 2[and

having been registered as a chartered accountant, cost
and management accountant, legal practitioner and
income tax practitioner] for a period of not less than ten
years.
(2) For the purposes of sub-clause (i) of clause (a) of sub-rule (1), a
degree conferred by a prescribed institution that is a foreign university or
institution shall only qualify if the degree is equivalent to a degree conferred by a
Pakistani university and is recognised as such by a Pakistani university.
(3) In this rule,
(a) “Institute of Chartered Accountants of Pakistan” means
the Institute of Chartered Accountants of Pakistan
constituted under the Chartered Accountants Ordinance,
1961;
(b) “foreign institution” means any institution in a foreign
country authorised to grant a degree under the laws of
the country;
(c) “foreign university” means any university in a foreign
country incorporated by law, or accredited or affiliated by
any association of universities or college in the country
or by any authority formed for that purpose under the
laws of that country;
(d) “prescribed accounting examination” means any of the
following examinations, namely-
(i) an examination equivalent to the intermediate
examination conducted by the Institute of
Chartered Accountants of Pakistan;
(ii) an examination equivalent to the intermediate
examination conducted by any foreign institute
of chartered accountants and recognised by the
Institute of Chartered Accountants of Pakistan
as equivalent to its intermediate certificate;
(iii) an examination equivalent the final examination
conducted by the Association of Certified and
Corporate Accountants, London; or
(iv) Part-III of examination for Cost and
Management Accountants conducted by the
Institute of Cost and Management Accountants
under the Cost and Management Accountants
Act, 1966 (XIV of 1966); and
(v) Certified public accountants of USA.

(e) “prescribed institution” means a university incorporated
by any law in force in Pakistan or Azad Kashmir, a
foreign university or a foreign institution.


So if you are a C.A Inter or have passed first 3 stages of ICMA and have worked with a charted accountant,Cost and Management Accountant or Income Tax Practitioner then you may register as Income Tax Practitioner also.

For the purpose of registration as Income Tax practitioner please see Income Tax Rules,2002.

Regards,

Awais Aftab
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

[AWAIS KHILJI]

HI