Taxation and Corporate Laws: Compliance and Consequence
What the case demands
Expect questions that combine computation with compliance obligations. On direct tax, know the residence and source rules, heads of income, allowable and disallowed deductions, depreciation pools, capital versus revenue distinction, loss carry-forward, and the mechanics of advance tax, withholding and return filing. On indirect tax, understand the charge to tax, input credit eligibility, and documentation. On corporate law, revise incorporation and share capital, directors' duties, board and shareholder meeting requirements, dividends, related-party transactions, and winding up. Company law questions often test procedure and consequence rather than arithmetic.
Traps candidates fall into
- Mixing personal and corporate rules when the case involves a director receiving benefits.
- Forgetting withholding on a payment that is otherwise deductible.
- Treating a penalty as deductible or a capital receipt as revenue.
- Ignoring deadlines for filings, notices and statutory registers.
- Quoting a rate without showing the base to which it applies.
Worked example
A company pays a supplier BDT 500,000 for services without deducting withholding tax at the applicable rate. The expense may be disallowed, and the company faces disallowance plus interest and possible penalty. The rule of thumb: for every payment in a case, ask three questions in order - is it deductible, must tax be withheld, and what documentation must be filed and by when? For corporate law, ask who has authority, what resolution is needed, and what must be filed with the regulator.