Aaron Russo was an American Jewish Grammy Award winner Hollywood Producer. He was nominated for the Academy Award as well as the Gloden Globe Award. He rose to fame with his 2006 Documentary America: Freedom to Fascism. This movie has been rated as 7.8/10 on IMDB – International Movie Database Website.

This is about the illegality of collection of Income Tax in the US. There is no law in the US Constitution that permits the collection of Income Tax. Supreme Court Rulings in favor of people not filing the Tax Returns as they are not required to file under the Constitution. The demonstrations held outside Capitol Hill by the Tax Honesty Movement, whose only demand is to see the law that asks them to pay the Income Tax. The total black out by the Media. The cover-up by the Govt. The Illegality of the IRS, the institution responsible for the collection of the Income Tax. The Grace Commission’s report of 15 Jan 1984, that mentioned the whole Income Tax collected is used to repay the interest on the loan to the Federal Reserve Bank “before one nickel is spent on the services which taxpayers expect from their government”

This Documentary is a must watch. Not to be missed at any cost!

America: Freedom to Fascism

Brief Profile of Aaron Russo
Aaron Russo (February 14, 1943 – August 24, 2007) was an American entertainment businessman, 9/11 conspiracy theorist,[1] trader, film maker, and political activist. Born in Brooklyn into a Sephardic Jewish family originally from Spain, which then migrated through Italy, into Greece and finally to New York. Russo was raised on Long Island. He began promoting rock and roll shows at local theaters while still a high school student. He then worked for his family’s undergarment business.

Note: Writer wants every reader to Google for deep intense research; for more objective perspective.

ISLAMABAD: The National Traders Alliance (NTA) on Monday rejected decision of FBR to initiate income tax audit anew citing unstable political and economic situation which has already brought business to the brink across the country. According to a statement, the decision will disturb the already lull business activities and result in massive closures. It will unleash another round of uncertainty, unemployment and agitation.

Malik Sohail Hussain, VP, NTA, President Blue Area Traders Association and former senior vice president of ICCI said that the decision should be kept pending until the political as well as economic situation turns favorable in country. “Not a single country has ever excelled by enhancing revenue collections; rather business environment should be made enabling,” he said.

Speaking at a high-level Malik Sagheer Ahmed, Chairman Blue Area Traders Association, Syed Amin Pirzada, Ahsan Bakthwari, Liaquat Noon, Haji Naeem, Yusuf Rajput, Shakil Aziz, Chaudhry Furqan, Chaudhry Waseem and Shahid Alam and others said that the recent decision of FBR is based on whim of IMF that will promote brawls and corruption.

They said that the decision is illegal and a conspiracy against the democratic government which will bring traders on the street. “Government should find new avenues to enhance revenue collections and honour its commitment to bring holy cows in the tax net,” they demanded adding that how long agriculture, stockbrokers, reality and professionals will remain out of the tax net.

Malik Sohail Hussain said that existing taxpayers should not be strangulated to boost collections. Tax relaxations to the amount of Rs 500 billion should be immediately withdrawn.

He appealed to the President Asif Ali Zardari, Prime Minister Yusaf Raza Gilani, Advisor on Finance Shaukat Tarin and Chairman FBR to reconsider the decision in the interest of country.

Traders are already facing problems due to deteriorating law and order situation, political clashes, economic depression, inflated energy costs, inflated interest rate and other unfavourable conditions. Trading community which is finding it hard to survive cannot afford a new round of audits.

Government had promised to select five per cent cases at random for audit by now it has turned back and started audit of over 2500 cases which will never be accepted. All the major associations and business chambers have expressed their serious reservations over the development which is seen as against the interest of business community and country, said Malik Sohail and Malik Sagheer.

“Government should enhance revenues by introducing amnesty schemes and exploring new avenues,” said Malik Sohail adding that enabling environment is the only answer to the current volatile situation.-SANA

ISLAMABAD: Federal Board of Revenue (FBR) collected Rs 628.22 billion of revenues during first seven months (July-January) of the current fiscal year 2008-09, showing an increase of 22.6 per cent over the corresponding period of the last fiscal year. According to the provisional figures, FBR collected Rs 234.595 billion as direct tax during the seven months as against Rs.191.665 billion collected during the last year, showing an increase of 22.6 percent.

The Indirect Taxes registered increase of 22.5 percent during the time under review by increasing from Rs 320.951 billion during July-January (2007-08) to Rs 393.226 billion in July-January (2008-09). Sales tax collection witnessed 25.1 percent increase by increasing from Rs 199.222 billion in 2007-08 to Rs 249.161 billion in 2008-09.

FBR collected Rs 69.515 billion as Federal Excise Duty during July-January (2008-09) as compared to collection of Rs 44.396 billion collected during the corresponding period of last year, showing an increase of 30.7 percent.

The customs collection also witnessed increase of 10.8 percent as the FBR collected Rs 83.551 billion customs duties in first seven months of current financial year against the collection of Rs 75.423 billion during the same period of last financial year.

During the month of January FBR collected revenue of Rs 74.39 billion, including Rs 24.65 billion direct taxes and Rs 49.731 billion indirect taxes. During the month under review, FBR collected Rs 31.982 billion as Sales Tax, Rs 6.955 billion as Federal Excise Duty and Rs 10.791 as Customs Duty, according to FBR figures.-SANA

MULTAN: Foreign Minister Makhdoom Shah Mehmood Qureshi on Sunday said that the political wing of the ISI was disbanded and termed it a positive development. While talking to the media persons at the local airport Sunday, Qureshi pointed out that ISI is a precious national institution and it wants to focus fully on counter-terrorism activities.

He said that the government was making all out efforts for repatriation of Dr. Aafia Siddiqui from US to Pakistan and expressed the hope that these efforts would bear fruit. He announced that her son has already been brought back to Pakistan.

He dispelled the impression that agriculture income tax was among the conditions for IMF bailout plan, neither was it a condition nor this tax was under consideration these days, FM said adding that this tax was a provincial subject. He said that IMF package was meant to fill the immediate resource gap and to pursue an economic stabilization plan. He reiterated resolve to improve ties with India saying that his visit to the neighboring country will help remove misunderstandings between the two countries.

He said that he would meet his counterpart Pranab Mukherjee and Indian leadership and bilateral issues will be discussed during the interaction. He hoped that his visit to India will help bridge the gulf and end trust deficit between the two countries and will prove fruitful in strengthening ties with India.
Foreign Minister said that it is our desire that both countries should live like friendly neighbors. He said that he will talk to the Indian leadership on water issue and added that Kashmir issue, already being a part of the composite dialogue between the two countries, will also be discussed.

About the Indian cricket team’s forthcoming tour to Pakistan, he said that the government wishes that Indian cricket squad should visit Pakistan. He added that government wants to improve people-to-people contact with India and exchange of delegations such as cultural delegations and sports teams will help improve relationships. He said that intellectuals, authors and sports persons of the two countries should have frequent interaction through exchange of delegations. Chief operating officer PCB Saleem Altaf said that Chairman Pakistan Cricket Board (PCB) Ijaz Butt will visit to India this month.

To a question, Qureshi categorically said there was no possibility of martial law in the country stating that the government, the parliament and the armed forces have unanimity of views on national issues. People may have this view but we do not agree with it, FM said adding that we are moving forward to combat challenges with consultations and understanding.

Mehmood Qureshi disclosed that after the Jan 13-16 expert level meeting scheduled to be held in Islamabad, he will invite FoDP Foreign Ministers to Pakistan in February next to move ahead with the plan to combat economic and security challenges confronting Pakistan.

About the IMF bailout package that is expected to be approved on Nov 24, Shah Mehmood Qureshi said its approval will pave the way for more assistance from other international financial institutions like World Bank, Asian Development Bank (ADB), Islamic Development Bank besides the Friends of Democratic Pakistan (FoDP) Group and other countries.

It was interesting and heartening to note that our home-grown plan prepared by 16-member panel of country’s economic experts headed by Dr. Hafeez Pasha that has also been discussed by the federal cabinet and the talks with IMF had similarities in approach and experts believe it was the best suitable option Pakistan could avail under the given conditions, FM said.

He said that Rupee was gaining strength against dollar and capital flight has stopped and hoped that capital flight phenomenon will soon witness a reverse trend with the arrival of foreign remittances. FM said that an expert level meeting will be held in Islamabad from Jan 13 to Jan 16 during which projects will be identified and discussed in four sectors with the assistance promised by FoDP in its Nov 17 meeting in Abu Dhabi.-SANA

ISLAMABAD: Pakistan was in the spotlight again this week over its need to reform the tax system as the government and potential donors worked on a plan to help the state in the face of a financial crisis. Just 1% of tax is collected in Pakistan.

Economic policymakers led by Shaukat Tarin, the Pakistan prime minister’s adviser on finance, said a radical improvement in income tax collection was vital in securing a crucial loan programme under discussion with the International Monetary Fund, reported the Financial Times.

Under the IMF loan, Pakistan is seeking to borrow $7.6bn (€6bn, £5bn) until the last quarter of 2010 to stave off a crisis on forthcoming debt payments. The government’s net liquid foreign currency reserves, which are below $3bn, are just enough to pay for about two to three weeks of imports.

Those reserves are likely to fall further without the IMF’s approval on the future policy direction of Pakistan’s economy, including measures such as tax reform. Only about 1 per cent of Pakistan’s population of more than 165m pay income tax, while the country’s tax-to-GDP ratio of about 10 per cent is the lowest in south Asia.

Mr Tarin said his objectives included raising the ratio to at least 15 per cent in the next five years. “We have to make everyone pay their dues. There should be no sacred cows. Everyone must pay their taxes so that we can overcome large-scale evasion and have more revenue to lower our fiscal deficit,” he said.

ISLAMABAD : Federal Board of Revenue (FBR) has extended the last date for filing of income tax returns up to October 31 to facilitate the taxpayers. The one-month extension has been granted following representations received by the FBR from various chambers of commerce & industry, tax bar associations, trade bodies, advocates/income tax practitioners and taxpayers seeking extension of time for filing their IT returns due to constraints faced because of the holy month of Ramazan, Aitkaf, performance of Umrah and the temporary disruption suffered by the e-filing process.

The extension would help individuals, associations of persons and the corporate sector to file their returns with convenience and ease. Meanwhile, the FBR has also extended the due date up to October 31, 2008 for availing of ‘Tax Arrears Settlement Scheme 2008’ (TASIS) introduced earlier vides Circular No.4 of 2008.

Under the scheme, individuals, associations of persons and companies against whom tax arrears including additional tax and penalties are outstanding, can settle their outstanding amount of income tax on payment of principal amount only. No additional tax, penalty or fine would be levied in cases where returns are filed in the extended periods.

In another decision, the FBR has also extended up to October 10, 2008 the due date for submission of sales tax and federal excise return and special return for production and supplies, for the tax period August, 2008, and annual sales tax return for the period 2007-08. The board, however, made it clear the payment of taxes for August 2008 had to be made by September 20 as already announced and no further extension would be given to those yet to deposit their taxes. -SANA

ISLAMABAD: Federal Board of Revenue (FBR) has exempted the Asian Development Bank (ADB) from payment of all taxes, including payment and collection of withholding taxes, says an official statement issued here Saturday. It said the exemption was already being enjoyed by the ADB under a proviso to section 54 of the Income Tax Ordinance, 2001.

However, the proviso was withdrawn following an amendment made through Finance Act, 2008, leaving no cushion or protection to the ADB income from levy of taxes w.e.f. tax year, 2009 and onwards.

The ADP however took up the matter with the Ministry of Finance, requesting for continuation of exemption to the bank as allowed earlier on under Article 56 of the Asian Development Bank Ordinance, 1971, which deals with the implementation of international agreements for establishment and operation of the bank and protects the bank’s income from levy of all taxes, including payment and collection of withholding taxes.

The FBR, therefore, has again allowed the exemption to the ADB by amending the Second Schedule to the Income Tax Ordinance, 2001 and adding new clauses vide SRO No. 1012(I)/2008 dated 23.09.2008 whereby the ADB’s income has been exempted from all taxes as “under the Asian Development Bank Ordinance, 1971 (IX of 1971)”.-SANA

ISLAMABAD: Ten percent additional tax on rental income in the budget will not only hurt the small traders and push prices further high but will strengthen the all-powerful real estate mafia.It is duty of the Government to protect people from inflated and uncontrollable business costs by providing equal opportunities to property owners and tenants, said Malik Sohail Hussain, VP National Traders Alliance & former SVP Islamabad Chamber of Commerce & Industry & Malik Saghair Ahmed, Chairman Traders Association Blue Area in a joint statement issued here on Friday. After 10 percent revenue enhancement, the helpless consumers will be paying more percent more on everything they buy. Read the full story