All you want to know about tax consultant in Pakistan
Tax consultant save their clients’ money through making wise decision about tax related issues. They basically interview their client to obtain information regarding their financial condition. They design strategies that will help them to reduce tax liability by taking the advantage of tax deduction and credits. The best tax consultant is the one that love to solve problem and work with people and demonstrate honesty and accuracy in their work. They work on multiple positions such as certified income tax preparers, tax advisor and associates tax specialists. Many organizations hire the services of tax experts and professional tax firms. There are special tax consultancy firm, law organization and public accounting firms. Government agency also employ tax consultant at federal, state and local level. Tax consultant also specializes in these areas of consultant like international tax, corporate tax and income tax. Next we will discuss about the job duties of tax consultants that they need to perform every day.
What is a tax consultant?
A tax consultant is a tax advisor who holds a high degree of education, an advanced knowledge of the law, and a background in finance. His/her role is to provide in-depth understanding of the tax and accounting services provided by a professional tax services provider. Tax consultants have a functional background in many fields, such as management, financial markets, and capital markets. This gives the tax consultant and the client an opportunity to compare various company performance and strategies. That knowledge that tax consultants provide can only be acquired by a professional. Additionally, tax consultants in Pakistan provide comprehensive, in-depth and sophisticated tax advice to their clients.
Good tax advisors have strong economic expertise and deep understanding of the implications of tax legislation. Tax consultants perform active tax advocacy, which helps their clients determine strategies to maximize the tax savings of their business. Additionally, tax consultants provide knowledge of tax laws and offer meaningful advice based on a firm's tax policy that supports the client's long-term survival. That knowledge improves the client’s decision making in all facets of his business.
Some benefits of hiring a tax consultant in Pakistan
1. In-depth understanding of the Pakistan tax laws
2. Effectiveness in establishing legal compliance
3. Ability to understand tax laws and current changes
4. Analyzing internal accounting weaknesses and strengths
5. Ability to properly administer assets
6. To save tax amount
Responsibilities of a Tax Consultant in Pakistan
Tax consultant’s responsibilities at a firm vary, depending on the type of business with high income needs. Tax consultants work on complex financial consulting, and the cost of a tax consultant can vary significantly across the country.
Here is a brief list of the main duties of a tax consultant:
1. Internal auditing
2. Internal financial services
3. Analyzing current financial reporting and legal compliance
4. Private company strategy and governance
5. Self-employment planning
6. Analysis of joint revenues and separate tax returns
7. Assess taxes on investments
8. Review of audit, law, and taxation matters
9. Review of federal income tax returns
10. Review of state and local tax matters
11. Analyze of internal and external accounting weaknesses
12. Manage effective internal controls
13. Appointment of new auditors
14. Monitoring internal and external reporting and control
14. Administer various tax and information technology systems
15. Self-service / eSignature of tax documents
They help their clients in various issues related to tax. They make sure that there client follow all the rules and regulation. Through their knowledge and expertise of tax code they help organization and individuals to pay what they owe. They minimize the tax liability of individuals and organization by decreasing the taxable income and by taking the advantage of deduction tax credits and applicable adjustments.
They fill out the clients tax returns; they advise and provide information to the clients so that they fill their tax return on their own. They will answer your all questions related to tax and also help them to get prepared for future tax situation and make sure that you compliance with all government regulation. They also check the other work to detect the issues in tax preparation tax consultants either specialize in one narrow area of tax or use general approach.
They also help people to solve concrete issues like mange tax that come from rental income setup and understand about the tax implication of death marriage, birth, divorcee and other events in life.
They should have strong communication skills, availability to solve complex problems and critical thinking. As tax consultants work with general public so need excellent customer service ability and interpersonal skills. They should listen to the people to have understanding about what help you can provide to them. They should clearly communicate verbally and in writing.
They know how to decode the complex legal information. They should stay organized, work well with number and they need to pay attention to each detail. They must possess strong legal research skills and must have understanding of legal codes, government regulation and law and agency rules. They need to keep themselves up to date with technology like email software, spreadsheet, software accounting software and tax preparation software. They should feel comfortable while working on computers and their personnel laptops.
They use their personal computers that have multiple useful soft wares that help them to perform their job duties. They consult tax law handbook to see the right procedure for specific situation. They also use telephone to communicate with their clients.
What qualification you need to be a tax consultant in Pakistan
You need to require on job training as many tax consultancy job opportunities require right training and experience. You don’t require any formal education or training but mostly tax consultant opt for the bachelor’s degree in finance or accounting. The professional that prepare tax return must register themselves as tax return preparers. They must possess a good communication skill to communicate with the clients. They need to be effective in logics and reasoning to solve the complex strategic issues they must have recent knowledge about Pakistan rules and regulation for tax. They should know how to speak and write English, grip on statistics, mathematics, algebra and calculus. As they deal directly with clients so they must know how to provide effective customer services. They also need to understand principle of economics and accounting.
How they are employed
Federal and local government – they also hire tax consultants. They review and evaluate polices, taxpayer education program and assist the staff as well.
Public accounting firms- usually the tax consultant are hired by the public accounting firms. They provide there service to the other businesses. They provide other organization with tax accounting and auditing facility.
Law Organization- they also work in law organization for their own tax practices as some time for organization tax situation become complex so they need help of consultant.
Special tax consulting firm- these firm are specialized in specific area tax like income tax, return pay roll tax or international tax
Tips to hire the tax consultant in Pakistan
- Check the qualification of your tax consultant that you want to hire.
- Check the history of tax consultant see for license status and also check for disciplinary action.
- Always ask about the charges they will charge from you.
- You can ask them for offering electronic filing.
- Make sure that you tax consultant is easily accessible.
- You should provide all receipts and record detail to tax consultant to file your return.
- If your tax consultant asks you to sign blank tax form don’t do at all.
- Before signing the tax return always review it to understand about its accuracy.
Pay Structure of tax consultant
In Pakistan the pay structure of tax consultant are high tax consultant who has an experience of 1 -3 years his average salary for year is around 14 lakh and for senior tax consultant it is around 25 lakh in year
Tax consultants in Pakistan are required to obtain a legal evaluation when serving on the firm's service organization. When business returns are prepared for distribution and review, they should be provided through the firm's internal accounting department. The tax consultant reviews its returns and provides ethical accounting advice to the clients to verify their status.The best tax consultant is the one that love to solve problem and work with people and demonstrate honesty and accuracy in their work. Many organizations hire the services of tax experts and professional tax firms that are special tax consultancy firm, law organization and public accounting firms. In this article we describe what tax consultant will do where they are employed, the qualification and pay structure of tax consultant in Pakistan. If you are searching for the best tax consultant within Pakistan then you have come to right place. We have updated the best tax consultant list for you. Just send message to multiple tax consultants and get relevant information.