Certified Tax Adviser (Skills Level)

Paper 1 – Tax Accounting and Financial Reporting

This paper covers preparation of financial statements in compliance with IFRS and applicable reporting framework in Pakistan and then analyzing the information contained in the financial reports (such as the Directors’ report and the notes to the financial statements). It also includes preparing the direct and indirect tax account and tax related policies and disclosure notes to the financial statements. 

  • Introduction to business and accounting
  • Financial Reporting
  • The accounting equation
  • Double entry bookkeeping
  • Bad and doubtful debts
  • Accruals and prepayments
  • Bank reconciliations
  • Correction of errors
  • Knowledge of IFRS for SMEs accounting standard 
  • Preparation of financial statement of a limited company.
  • Interpretation of financial statement. 

In this paper the students will be able to:

  1. Explain accounting terminologies, conventions and standard accounting practices.
  2. Describe different types of entities and prepare financial statements for each.
  3. Understand tax accounting entries and prepare tax account and disclosure notes for inclusion in financial statements.
  4. Perform an expert interpretation and analysis of information from the financial reports.

Paper 2 – Direct Taxes (Technical Concepts)

This paper is to develop technical knowledge relating to Pakistan Direct Tax Laws and Systems as applicable to individuals, unincorporated businesses and companies.

This paper will be examined through short structured questions over the duration of 3 hours and 15 minutes.

  1. Income Tax
      i) Income Tax Ordinance 2001
      ii) Notifications, Rules, General orders and Circulars issued under the Income Tax Ordinance 2001, excluding international taxation

Note: Professional ethics and values will be examined as an integral part of each section with emphasis on:

  • Principle of fair tax legislation and tax administration
  • Ethics for tax payers and tax advisers
  • Tax evasion, avoidance and minimization

Paper 3 – Indirect Taxes (Technical Concepts)

This paper is to develop technical knowledge relating to Pakistan Indirect Tax Laws and System.

This paper will be examined through short structured questions over the duration of 3 hours and 15 minutes.

  1. Sales Tax
      i) Sales Tax Act 1990
      ii) Provincial Sales Tax
      iii) Islamabad Capital Territory (Tax on Services) Ordinance 2001
      iv) Notifications, Rules, General Orders and Circulars issued under the Sales Tax Act 1990
       
  2. Federal Excise
      i) The Federal Excise Act 2005 (Chapters I – “Preliminary” and Chapter II – “Levy, Collection and Payment of Duty”)
      ii) Notifications, Rules, General orders and Circulars issued under the Federal Excise Act 2005, relevant to Chapters I and II only
  3. Customs
      i) Customs Act 1969 as amended up-to-date (Chapters I – “Preliminary”, Chapter V – “Levy Of, Exemption From, and Repayment of, Custom – Duties” and Chapter VI – “Drawback”)
      ii) Details of procedure in relation to levy, collection and exemption from and repayment of custom duties and duty drawbacks

Note: Professional ethics and values will be examined as an integral part of each section with emphasis on:

  • Principle of fair tax legislation and tax administration
  • Ethics for tax payers and tax advisers
  • Tax evasion, avoidance and minimization

Eligibility: CTM Qualified, 14 Years of relevant education or equivalent.

Exemptions

A candidate may be eligible to apply for exemptions from some of the CTA examinations if he holds certain recognized qualifications and have passed relevant paper(s). The candidate can only apply for exemptions if he has actually sat in the relevant examination and qualified the same, meaning the candidate has completed necessary examinations for the relevant academic qualification or a mapped level of professional qualification.