Lahore University of Management Sciences

Law-323 Tax Law

Spring Semester 2017


Instructor AKHTAR ALI
Room No. -
Office Hours TBD
Email info@akhtarali.com
Telephone 042-36282432-33; 0300-8441094
Secretary/TA TBD
TA Office Hours TBD
Course URL (if any) -

Course Basics
Credit Hours 4
Lecture(s) Nbr of Lec(s) Per Week 2 Duration 110 minutes each
Recitation/Lab (per week) Nbr of Lec(s) Per Week None Duration N/A
Tutorial (per week) Nbr of Lec(s) Per Week None Duration N/A

Course Distribution
Core No
Elective BA/LLB
Open for Student Category Non-law students: Juniors and Seniors
Close for Student Category Freshman and Sophomore

COURSE DESCRIPTION
Study of Indirect Taxes in Pakistan, namely:
1- The Sales Tax act, 1990
2- The Federal Excise Act, 2005
3- The Customs Act,1969

COURSE PREREQUISITE(S)


None

COURSE OBJECTIVES

* To introduce basic and universally accepted concepts of value added tax.

* To give an international perspective to students to understand the rationale behind

frequent changes in Pakistans sales tax, which otherwise may look incoherent and
bizarre.








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Learning Outcomes

* The course intends to give an insight into evolution and development of sales tax in


Pakistan during last 20 25 years.

* Basic and fundamental concepts, rationale and functions of customs duties/tariff


and of Customs Act will be discussed.

* Basic concepts of Federal Excise Act and duties will be introduced.

* The students will be given an overview of sales tax on services as introduced

through Provincial Sales Tax Acts of Sindh, Punjab and KPK.


* The students, after studying the course should be able to know as to which
provision of law will be applicable to a particular situation and how the same has
been interpreted by the courts.
Grading Breakup and Policy

Assignment(s) and case law: 15%
Home Work: -
Quiz(s): 10%
Class Participation and attendance: 10%
Midterm Examination: 25%
Project: -
Final Examination: 40%


Examination Detail

Yes/No: Yes
Combine Separate: Separate.
Midterm
Duration: 1 hour and 30 minutes
Exam
Preferred Date:
Exam Specifications: Written Open Statute


Yes/No: Yes
Combine Separate: Separate.
Final Exam
Duration: 3 hours
Exam Specifications: Written Open Statute



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COURSE OVERVIEW
Week/
Lecture/ Topics
Module
Nature, importance and gradual
spread of Value Added Tax in
Europe and the rest of world;
design and implementation
issues in VAT. Europe, it has traveled to
1.
Introduction to Sales Tax Act,
terminology used and
definitions; scope and payment
of tax. to be understood for
2.
Recommended Objectives/
Readings Application
The Modern VAT by Development of VAT has
Liam Ebrill, Michael taken place in the last
Keen, Jean-Paul Bodin 50 60 years. After its
and Victoria Summers. successful introduction in
Latin America and Asia
mainly under influence of
international donor
agencies which
encouraged developing
countries to levy taxes on
consumption rather than
on trade. For this purpose,
there was no better
instrument than VAT
which can be imposed
with equal ease both on
goods and services. The
spread of VAT therefore
needs to be examined in
the context of its
efficiency as well as
overall international trade
agenda.
The Sales Tax Act, 1990 The sales tax like other
taxes has its own peculiar
terminology which needs
better appreciation of the
underlying currents and
concepts of the tax.
Complications involved
in the charging section
and input tax/output tax
mechanism also need to
be understood.
 Lahore University of Management Sciences

Scope and nature of The Sales Tax Act, To give an

zero-rating, exemptions, Third 1990 understanding of
3.
and Sixth Schedule of the Act. various concepts in the
Sales Tax Act.
Discussion on case law Important reported Case How various provisions
relating to time of supply, Law. of Act have been
4.
value of supply, scope of tax interpreted by courts.
& input tax/output tax credit.
Registration, de-registration, The Sales Tax Act, To give an
book-keeping requirements, 1990 understanding of
5.
audit, blacklisting & filing of various provisions of
returns. sales tax law.
Discussion on quasi-judicial The Sales Tax Act, Since quasi-judicial
adjudication process, offences, 1990 adjudication process is
penalties, & procedure in distinct from civil and
appeals including provisions criminal judicial
relating to criminal processes, it is
proceedings. important to give an
overview of the
practices in the
quasi-judicial system
6. and its comparison with
the criminal
proceedings under the
Act. Students need to
know the process of
issuance of show-cause
notices, hearing
proceedings,
orders-in-original and
orders-in-appeal etc.
Discussion on rules and The Sales Tax Rules, To give an
procedures relating to refund 2006 and The Sales Tax understanding of
7.
and recovery. Act, 1990 various provisions of
sales tax law.
Discussion on Special The Sales Tax Special To give an
8. Procedures for collection and Procedure Rules, 2007 understanding of
payment of sales tax for and The Sales Tax Act, various provisions of
 Lahore University of Management Sciences
specified sectors. 1990 sales tax law.
Historical perspective of The Customs Act, 1969 Historical perspective of

custom duties in Pakistan. customs duties and
9. Definitions and overall overall context of the
scheme of The Customs Act, Act.
1969.
Levy of, exemption from and The Customs Act, 1969 To give an
re-payment of customs duty understanding of
10.
including important case law. various provisions of
customs law.
Value of imported goods, The Customs Act, 1969 To give an
mis-declaration, assessment of understanding of
11.
duty & warehousing of various provisions of
imported goods. customs law.
Prevention of smuggling; The Customs Act, 1969 To give an
power of search, seizure & understanding of
12.
arrest. various provisions of
customs law.
Levy, exemption, collection The Federal Excise Act, To understand
and payment of excise duty. 2005 conceptional
13.
framework of excise
duties.
First & Second Schedule of The Federal Excise Act, To understand
the Act and Federal Excise 2005 conceptional
14. Rules including special framework of excise
procedures for excisable duties.
services.

Textbook(s)/Supplementary Readings
! The Modern VAT by Liam Ebrill, Michael Keen, Jean-Paul Bodin and Victoria
Summers.
! The Sales Tax Act, 1990.
! The Customs Act, 1969.
! The Federal Excise Act, 2005.
! Important reported Case Law.