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ATAIC MACRO PROFILE

Area 10.53 sq km

Population 893.00 mill

Lbr Force 328 mill

GDP $ 3.50 Trillion

Agg revenues $ 419.50 bill

Agg expend $ 427.00 bill

Exports $ 542.00 bill

Imports $ 441.00 bill


Pub debt % of GDP
794%
(partial infor)
External debt $ 516.00 bill
ASSOCIATION OF TAX AUTHORITIES OF ISLAMIC COUNTRIES (ATAIC) - PROFILE.

popu- gdp gini sectoral lbr pub debt externa mily exp
country area lation gdp per capita index gdp % force revenuesexpendit reservesexports imports gdp % debt gdp% U.G.E
sq km mill $ bill $ mill $ bill $ bill $ bill $ bill $ bill $ bill gdp%

Bangladesh 144000 147 331 2200 31.8 agri 19.9 68 6.389 8.694 3.278 11.17 13.77 46.7 22.55 1.80% 36.8
ind 20.6
serv 59.5

Brunei 5770 0.38 6.842 23,600 agri 3.6 0.146 3.765 4.815 4.514 1.641 0 5.10% NA
ind 56.1
serv 40.3

Comoros 2170 0.691 0.441 600 agri 40 0.1445 0.0276 0.034 0.115 0.232 3% NA
ind 4
serv 56

Egypt 1001450 79 328.1 4200 34.4 agri 14.7 21.8 21.32 31.83 26.3 24.22 35.86 102.9 22.59 3.40% 38.4
ind 35.5
serv 49.8

Guyana 214970 0.767 3.62 4,700 agri 35.5 0.418 0.36 0.43 0.295 0.622 0.707 1.2 0.90% NA
ind 19.3
serv 45.2

Indonesia 1919440 245.5 935 3800 34.8 agri 13.1 108.2 75.58 79.45 43.04 102.3 77.73 43.8 130.4 3% 19.6
ind 46
serv 41

Iran 1648000 68.688 610.4 8900 43 agri 11.2 24.36 104.6 100.6 58.46 63.18 45.48 25.30% 14.8 3.3 19.3
ind 41.7
serv 47.1

Iraq 437072 26.8 94.1 1900 agri 7.3 7.4 30.8 34.6 15.65 32.19 20.76 81.48 NA NA
ind 66.6
serv 26.1

Jordan 92300 6 28.89 4900 36.4 agri 3.6 1.512 4.191 5.305 5.55 4.798 10.42 79.9 9.071 11.4 19.4
ind 30.5
serv 65.9

Kuwait 17820 2.4 52.17 21600 agri 0.4 1.136 59.58 33.62 11.08 56.06 19.12 8.1 19.7 4.2 NA
ind 48.3
serv 51.3

Lebanon 10400 3.9 21.45 5500 agri 7.0 1.5 4.444 7.429 16.78 1.881 9.34 209 31.1 3.1 35.6
ind 21
serv 72

Malaysia 329750 24.4 308.8 12700 49.2 agri 8.3 10.73 31.63 37 82.3 158.7 127.3 46.7 57.77 2.03 32.1
ind 48.1
serv 43.6

Morocco 446550 33 147 4400 40 agri 13.3 11.25 15.85 20.39 18.21 11.72 21.22 70.9 17.9 5 38.4
ind 31.2
serv 55.5

Pakistan 803940 166 427 2600 41 agri 22 48.3 20.55 25.65 13.29 19.24 26.79 55 42.38 3.9 38.4
ind 26
serv 52

Qatar 11437 0.885 26.05 29400 agri 0.1 0.508 22.51 16.89 5.755 33.25 12.36 23.6 25.7 10 NA
ind 77.2
serv 22.6

Senegal 196190 12 22 1800 41.3 agri 18.3 4.749 2.023 2.377 1.18 1.478 2.98 17.8 1.628 1.4 45.2
ind 19.2
serv 62.5

Sierra Leone 71740 6 5.38 900 62.9 agri 49 1.4 0.096 0.351 0.185 0.531 1.61 1.7 NA
ind 31
serv 21

Sudan 2505810 41 96 2300 agri 35.5 7.4 7.943 10.1 3.552 7.505 8.693 59.6 29.69 3 NA
ind 24.8
serv 39.7

Tajikistan 143100 7 9.4 1300 34.7 agri 22.7 3.7 0.527 0.622 0.209 1.16 1.513 0.829 3.9 NA
ind 28.5
. serv 48.8

Yemen 527970 21.5 20.38 900 33.4 agri 12.5 5.759 7.314 6.984 6.735 8.214 5 30 5.5 6.4 27.5
ind 43.8
serv 43.7
Notes:
Revenues (J) : "Aggregate" Revenues [ Tax+Non-Tax].
Expenditures(K): "Overall" Expenditures [inc. Capital Expenditures].
NA: data not available
U.G.E:®: Underground Economy.
The data tabulated reflects position as on 30-06-06. Sources are various but authoritative.
Directorate General of Training & Research (Direct Taxes)
Conference of Heads of ATAIC Training Institutions
12-14 March, 2007
CONFERENCE SESSION IN PROGRESS
`

Table of Contents

i. List of delegates 9-11


ii. Conference program 11-13
iii. Final Report 14-20
iv. Conference recommendations 21-24
v. ‘Rapporteurs’ Report 25-56
vi. Appendix 57
vii. Address to delegates by DG(DOT)(DT) 58-72
viii. Address to delegates by member (DT) 73-78
ix. CBR Logo 79
ATAIC
Association of Tax
Authorities of Islamic
Countries

Conference of
Heads of Training Institutions
(Direct Taxes)

Part – II

Conference Proceedings as
Recorded by the Rapporteurs

March 12–14, 2007

Venue:
DOT Complex,
Lahore, Pakistan.
FOREIGN DELEGATES
I. KUWAIT
01. Mr. Muhammad W. Al-Wasmi
02. Mr. Abdullah Y. Al-Nami
II. MALAYSIA
03. Madam Noor Azian Abdul Hamid
Director
Malaysia Tax Academy
04. Madam Noraini Mustafa
Director
Human Resource
05. Mr. Zaid Abdullah
Principal Assistant Director
Audit Training Centre
III MOROCCO
06. Mr. Omar Al Madani
Head of Multilateral Co-op Unit
07. Mr. Mohammad Said Bentaouet
Manager
Central Training Department
IV PAKISTAN
08. Mr. Muhammad Talha
Member (Human Resource Management)
Central Board of Revenue,
09. Mr. Muhammad Muneer Qureshi
Director General
Directorate General of Training & Research
(Income Tax)
V. SUDAN
10. Mr. Ibrahim Mohamed El-Hāssan Ibrahim
Head of Training Administration
11. Bushra Mohamed El-Makki Al-Khalifa
Scientific Supervisor in the Training
Administration
12. Jalal Eldein Suleman Gibereel Osman
I. T Manager in the T.A.
VI. YEMEN
13. Al-Haj Mohammad Saeed
Yemen Tax Authority
VII. TURKEY [OBSERVER]
14. Fayyaz Yazar
Chief Tax Inspector
15. Mr. Hassan Kaymak
16. Bulent Buyukdigan
Chief Revenue Controller
VIII IBFD [OBSERVER]
17. Aurobindo Ponniah
International Bureau of Fiscal Documentation
(IBFD)
Malaysia
18. Dr. V. Van Kommer
Manager Government Consultancy
International Bureau of Fiscal Documentation
(IBFD)
P.O. Box 20237,
1000 HE Amsterdam,
Neatherland
IX. USA [DEPTT. OF TREASURY] [OBSERVER]
19. Lee Niederman
Regional Training Coordinator
REVISED PROGRAM
CONFERENCE OF HEADS OF ATAIC TRAINING INSTITUTIONS
Venue : Directorate General of Training & Research (Direct Taxes)
Allama Iqbal Town, Lahore, Pakistan
Day 1
Monday, 12th March 2007

0900 – 0930 Hrs. Registration of delegates


0930 – 0950 Hrs. Guests to be seated
1000 – 1030 Hrs. Opening Session
• Welcome speech by DG, DOT.
• Address by Chief Guest Mr. M. Abdullah Yusuf, Secretary General [Revenue
Division] / Chairman, CBR / Chairperson ATAIC.
1030 – 1100 Hrs. Tea Break
First Session
Time Chairperson Co-Chairperson Rapporteur
Madam Noor Azian Abdul Hamid Mr. Salman Nabi Ms. Iram Adnan
(Director Malaysian Tax Academy) (Member, Direct Taxes, (Additional Director,
CBR) DOT)
1100 – 1145 Hrs. “Vision of CBR Training Strategy”
(paper to be read by Mr. Muhammad Talha (Member HRM) CBR Pakistan
1145 – 1205 Hrs. “Training at the Civil Services Academy”
(Paper to be read by Maj. Gen. (r) Sikandar Shami, Director General, Civil Services
Academy, Lahore)
1205 – 1245 Hrs. “Computerization of tax records and selection of cases for audit”
(Paper to be read by Mr. Fayyaz Yazar, Chief Tax Inspector, Turkey.)
1245 – 1330 Hrs. Training Needs Analysis
“Multidimensional and Integrated Training”
(Paper to be read by Mr. M. Munir Qureshi, DG (DT), DOT, Lahore)
1330 – 1430 Hrs. Lunch / Prayer Break
Second Session

Time Chairperson Co-Chairperson Rapporteur


Mr. Khurshid Sattaur Mr. Muhammad Talha Ms. Iram Adnan
(Commissioner General, (Member HRM ,CBR) (Additional Director, DOT)
Guyana Revenue Authority)
1430 – 1545 Hrs. “Simulation Techniques in Training, Forensic Investigation, Computer Forensics”
(Papers to be read by, Madam Noor Azian Abdul Hamid,
Madam Noraini Mustafa and Mr. Zahid Abdullah, Delegates from Malaysia.)
1545 – 1700 Hrs. The “Tax Management System” (TMS) in Pakistan
(Paper to be read by Mr. Nasir ud Din Khan, CEO, Pakistan Revenue Automation Ltd).

1900 HRS: Visit to Lahore Landmarks / Dinner at Cuckoo’s Restaurant.


2

Day 2
Tuesday, 13th March 2007

Time Chairperson Co-Chairperson Rapporteur


Ms. Rahela Chowdhury Mr. Abdur Razzak Ms. Amna Faiz Bhatty
(Director General, Tax Training (Member, Audit ,CBR) (Deputy Director, DOT)
Directorate, Bangladesh)
3rd Session
0900 – 1000 Hrs. Training Needs Analysis (Ways and Means)
(Papers to be read by Mr. Omar Al Madani (Head of Multilateral Cooperation Unit,
Morocco) and Sudan)
1000-1100Hrs. Training Needs Analysis (Ways and Means)
(Paper to be read by Mr. Ibrahim Muhammad Elhassan Ibrahim (General Manager of
training & taxation Institute, Sudan)
1100 – 1130 Hrs. Tea Break
4th Session
Time Chairperson Co-Chairperson Rapporteur
Mr. Muhammad Raza Abdi, Maj. Gen. (Rtd.) Ms. Amna Faiz Bhatty
(Deputy of Iranian National Tax Muhammad Yasin (Deputy Director, DOT)
Administration for Planning (Member Admin. ,CBR)
and Research)
1130 – 1330 Hrs. Training methodology / Country Models
(Papers to be read by each country participant on their respective methodologies.)
1130 – 1200 Hrs. Bangladesh
1200 - -1230 Hrs. Guyana
1230 – 1300 Hrs. Iran
1300 – 1330 Hrs. Malaysia
1330 – 1430 Hrs. Lunch / Prayer Break
5th Session
Time Chairperson Co-Chairperson Rapporteur
Mr. Omar Al Madni Mr. Mumtaz Ahmad Sheikh Ms. Amna Faiz Bhatty
(Head of Multilateral (Member Legal ,CBR) (Deputy Director, DOT)
Cooperation Unit, Morocco )
1430 – 1700 Hrs. Training Methodology- Country models ……Contd from 4th session
1430 – 1500 Hrs Morocco
1500 – 1530 Hrs. Turkey
1530 – 1600 Hrs. Sudan
1600 – 1630 Hrs. Yemen
1630 – 1700 Hrs. Indonesia

1900 HRS: CULTURAL EVENING / DINNER


3

Day 3
Wednesday, 14th March 2007

Time Chairperson Co-Chairperson Rapporteur


Mr. Fayyaz Yazar, Mr. Mahmood Alam Dr. Yasmin Fatima
(Chief Tax Inspector, Turkey) (Director General, (Deputy Director, DOT)
Customs, Sales Tax &
Federal Excise, CBR)
6th Session
0900 – 1100 Hrs. Brainstorming Session in which participants to be divided into 4 groups for group
discussions on the following topics:

1. Infrastructural / Human resource requirements


2. Developing good Evaluation Criteria
3. Course design and instruction methodologies.
4. Scope of Cooperation in Training amongst member countries
1100 – 1130 Hrs. Tea Break
th
7 Session
Presentations by sub groups of Brainstorming Session.
1130 – 1200 Hrs. Presentation of Group 1 and Q & A Session
1130 – 1330 Hrs. 1200 – 1230 Hrs. Presentation of Group 2 and Q & A Session
1230 – 1300 Hrs. Presentation of Group 3 and Q & A Session
1300 – 1330 Hrs. Presentation of Group 4 and Q & A Session
1330 – 1430 Hrs. Lunch / Prayer Break
Concluding Session
1430 – 1700 Hrs. Recommendations of the delegates on future cooperation to be presented by
Mr. Muhammad Munir Qureshi, DG, DOT
Address by the Secretary General [Revenue Division] / Chairman, CBR / Chairperson
ATAIC
Certificate Distribution and Speech by the Chief Guest

UPDATED ON 07.03.2007.
Int’l Conference of Heads of Training Institutions
of the Association of Tax Authorities of Islamic
Countries (ATAIC).

By Muneer Qureshi
Director General DOT(DT)

The first Conference of ATAIC Heads of Scandinavian countries tax to GDP ratios of
Training Institutions was held at the 40% and above are commonplace.
Directorate General of Income Tax (Training
and Research), Lahore from March 12 -14, In the ATAIC group the average “aggregate
2007. revenue” [tax and non-tax revenue] for the
entire group comes to just 419.5 bill dollars US
which is just 12% of the overall GDP of 3474
Nine countries represented by seventeen billion dollars. Considering that the aggregate
delegates, including observers, participated. revenue includes both tax and non tax revenue,
the yield from taxation is certainly very much on
The theme of the conference was “Technology the lower side. Countries like Pakistan have a
as a Force Multiplier in training and the tax to GDP ratio of just about 10%. Needless to
workplace.” say this needs to be improved drastically. Only
three countries of the ATAIC group, oil rich
The purpose of holding this conference was to Kuwait, Qatar and Iran are able to generate
look in-depth at the existing arrangements for aggregate revenues significantly in excess of
training of direct tax personnel in the ATAIC their aggregate expenditures.
group, to evaluate different options to improve
the same and develop a broad consensus on Consistent with the Conference theme,
the key issues involved and the best practices presentations were made on a wide range of
in this area. topics including Forensic Audit, Computer
Forensics, Simulation methodology,
The poor yield from taxation is a feature Computerization in the tax department and it’s
common to many countries of the ATAIC role in selecting Returns for audit, data
group. The tax to GDP ratios are well below
warehousing, multi-dimensional training
those achieved in the developed countries
where a yield of 20% and above vis a vis GDP methodology etc
is not uncommon. And in the highly developed

1
The use of modern technology has be able to tap the superb on-line IBFD resources
revolutionized work place practices in all areas. including comprehensive data base and
Information Technology has probably had the specialized tax journals and this promises to lead
biggest impact of all the different technologies to a quantum jump in DOT(DT) training
available. potential. Incidentally, IBFD membership does
not come cheap and CBR’s willingness to
At the heart of Information Technology is the commit significant resources to the much sought
ubiquitous computer. This may be a full after membership of this prestigious institution is
fledged ‘mainframe,’ a ‘mini mainframe,’ or a symbolic of governments firm resolve to
P.C. Whatever it’s configuration, given upgrade the training and research establishment
appropriate software, a networked environment and bring it up to International standards.
and suitable peripherals, this machine has
magnified enormously the human capability to The first Conference of ATAIC Heads of
store, retrieve and process vast amounts of raw Taxation Training Institutions was inaugurated
data. on the 12th March 2007 by Mr Salman Nabi,
Member (Direct Taxes), CBR, and in his
In revenue mobilization, the training of tax inaugural address he recapitulated Pakistan’s
personnel in diverse disciplines is today participation in the ATAIC Technical
heavily dependent on modern technology. Conferences held so far and CBR’s initiative in
Forensic audit, computer forensics and emphasizing the need for a conference convened
Simulation are all highly specialized areas in expressly to appraise the arrangements for
which tax personnel need to be trained training of taxation personnel within the ATAIC
intensively in order to make it possible for group.
them to conduct meaningful audit, detect tax
evasion, bring the concealed / suppressed
income to tax and, in selected cases,
successfully prosecute tax evaders in a court of
law, leading eventually to a significant jump in
government revenues – revenues necessary to
launch programs of economic development and
meet other pressing expenditures, including
those on Defense and Administration.

At the DOT(DT) main campus at Lahore there


has already been a sea change in the induction
of modern technology to impart training to tax
personnel. Four, state of the art computer labs
with 100 odd P-IV branded computers with
comprehensive, uninterrupted power backup
placed in a fully networked environment are
the core component of the new technology Mr SALMAN NABI, MEMBER, CBR (DT)
dedicated to provide training on the Tax
Management System (TMS) newly developed He pointed out that most ATAIC member
by Pakistan Revenue Automation Ltd, a fully countries were facing recurring fiscal deficits
owned CBR subsidiary company. Besides, and there was an urgent need to augment
multi-media projection, electronic revenues meaningfully which can only happen if
‘blackboards’[panaboards] with built in there was a very well trained workforce of
scanner, laser printers and flat bed optical taxation personnel.
scanners etc lend full support. It is now
possible to render realistic simulation scenarios Mr Salman Nabi drew attention to the fact that in
using dedicated, proprietory software. an era of globalization and economic integration
it was imperative that taxation personnel are
familiar with the latest investigative techniques
DOT(DT) is also well on the way of becoming and understand the relatively new science of
a full fledged member of the International computer forensics for which a concerted
Bureau of Fiscal documentation and will soon training effort was necessary. He pointed out
2
that a beginning had already been made by
DOT when in 2005 a 12 day workshop on
revenue forecasting was organized using the
micro simulation approach developed by a
foreign consultant to plot future revenue
streams. He expressed complete confidence in
DOT’s ability to conduct more workshops on
these lines and advised that DOT implement a DELEGATION FROM SUDAN
CBR commitment to the United Nation’s to use
the available training facilities at DOT on an
international plane.

DELEGATES FROM MOROCCO & Member (Admn)CBR,


Pakistan.

US Treasury Deptt Delegate

Mr Muneer Qureshi, DG(DOT)(DT) also spoke


on the occasion.

DELEGATES FROM KUWAIT

The Head of Pakistan’s training establishment


for Direct Tax personnel recounted changes
made in DOT(DT) curricula and methodology
in the wake of wide ranging tax reforms
introduced by the present government since
2001 and the upgradation of training facilities
at DOT(DT).

During the conference proceedings delegates


DELEGATE FROM YEMEN
from all the participating countries made
presentations and there was something of value
in each presentation.

3
ATAIC Member but because of it’s active
participation as an ‘Observer’ in all ATAIC
conferences / meetings, is identified as a ‘Best
Practices country’ in these areas that ATAIC
members can emulate. It is our ardent hope that
Turkey will soon , InshaAllah, become a full

fledged member of the ATAIC. The progress


made by Turkey in the imaginative use of
computers and related Information Technology
is evident from the fact that 91% of corporate tax
taxpayers in Turkey use the e-filing channel for
Delegate from the IBFD, the Netherlands.
tax Returns and overall some 67% of the total
However the presentations by the delegates taxpayer population [corporate and non
from Malaysia and Turkey do need special corporate] required to file Tax Returns use the e-
mention. Malaysia has made significant channel. This translates into savings of some
progress in developing training modules in 6000 tons of paper annually with a monetary
Forensic Audit, Computer Forensics and value of some 3.4 million euros.
Simulation and has been identified as a ‘Best
Practices’ ATAIC Member in these disciplines. From Pakistan there was a useful presentation by
The efficacy of Tax Administration in Pakistan Revenue Automation (PRAL) CEO,
Malaysia is evident from the fact that with a Mr Nasir Khan on the computerized Tax
population of just 24 million it has more than

DELEGATES FROM MALAYSIA

four million registered taxpayers (20% odd).


Likewise, Turkey has much to offer in Management System (TMS) in which DOT(DT)
computerization generally and more facilities have been used to provide training to a
particularly, ‘data ware housing’ and although core group of ‘master trainers’ who are now in a
not yet an position to impart training to members of CBR’s
field formations in different parts of the country.
The TMS is unique in that it has been developed
by CBR / PRAL using in-house expertise. It is
based on the ‘Oracle’ Data Base platform and is
being used to input tax data to build a unque
profile of each taxpayer and to implement and
store statutory orders relating to income tax
assessment, rectification and refunds.
DELEGATES FROM TURKEY

4
seeks to relate course content with the conditions
actually prevalent in the economy and training is
Mr Muhammad Talha, Member (HRM) CBR, thus made more meaningful and more relevant to
the real world in which tax personnel work. The
‘under ground economy’ is one such real world
scenario in which the new training methodology
holds much promise. The UGE is of great
significance to most developing countries in that
this segment robs the exchequer of considerable
tax revenue besides creating destabilizing
distortions in the economy and under mining the
rule of law in the country. The capacity building
training at DOT(DT) makes full use of this new
[Pakistan] made a very succinct presentation
training methodology as does the specialized
on “CBR Vision for Training / Capacity
training program (STP) for the income tax group
Building
probationary officer’s.

Maj Gen® Sikandar Shami [(HI(M)], Director


General of the prestigious Civil Services
Academy- where the training of the ‘raw’ CSS

and explained how the reform process has


evolved since 2001 with special reference to
the training program for CBR personnel.

Also from Pakistan, Mr Muneer Qureshi, the Maj Gen® Sikandar Shami, DG, CSA
Director General DOT(DT) explained to the
conference delegates the new ‘multi ‘recruits’ entering federal government service
dimensional’ training methodology being actually begins- gave a very lucid presentation
developed and implemented at DOT(DT). on the initial training process and explained how
they too at CSA are using modern approaches to
teaching to achieve optimal benefit.

At the end of the three days of intensive


deliberations, the delegates agreed on nineteen
recommendations and the following
communiqué has been released by DGDOT(DT)
and sent to all ATAIC Members:

RECOMMENDATIONS OF THE DELEGATES


PARTICIPATING IN THE CONFERENCE OF
HEADS OF ATAIC TRAINING INSTITUTIONS
HELD AT DOT(DT), LAHORE, PAKISTAN. March
DG(DOT)(DT) 12 – 14, 2007.

In contradistinction to the previous, lecture The Reports as submitted by the Conference


based ‘uni-dimensional’ training methodology Rapporteurs having been scrutinized, corrected /
amended, where necessary, and finally duly
in vogue since 1947 [and even earlier!], the approved by the respective Chairpersons in the
new holistic, ‘multi-dimensional’ training various Sessions,
methodology exploits new approaches to It is hereby resolved that:
learning including dynamic, interactive class
1. The officer’s of the (Taxation) Training
participation, case study, role play and Institutions of the Association of Tax
simulation. It was explained that this approach
5
Authorities of Islamic Countries (ATAIC) 15. Turkey (OBSERVER COUNTRY but active
will continue to meet at regular intervals participant) will be “Best practices
to discuss and consider issues pertinent Model” in computerization and data
to the training of their taxation warehousing.
personnel. 16. Pakistan’s experience with ‘Self
2. All Members of the ATAIC shall Assessment’ / ‘voluntary compliance,’
participate fully in Conferences / ‘Withholding Taxation’ and ‘Joint Audit
Workshops held and absence will be Training’ will be referred to by Members in
avoided. designing their training programs.
3. To improve interaction between 17. The Pakistan Direct Taxation Training
Members, special efforts will be made Institution (DOT(DT)) will make necessary
to overcome the “language barrier” arrangements to provide training in
between Members. English Language communication skills to
4. Normally, English (UK) will be used as a ATAIC Members desirous of receiving
common medium of expression such training, on a ‘no profit, no loss’
between Members and Members will basis.
make efforts to improve the English 18. The ‘Informal Sector’ will receive special
expression and comprehension of their emphasis in the Training curricula.
Taxation Training Institutions personnel, 19. ATAIC Taxation Training Manuals will be
especially those likely to participate in digitized and On-Line access by
International Conferences. Members will be enabled.
5. When ATAIC Members hold
Conferences, where possible, Issued by M Muneer Qureshi DG(DOT)(DT),
simultaneous translation facilities the Conference Convener, this 14th day of
(English to Arabic) will be provided. March, 2007 and sent to all Members of the
6. There shall be improved sharing of
relevant information between ATAIC
ATAIC.
Members and the World Wide Web
/Internet will be fully and properly put to DOT(DT) was privileged to have the
use in this context. Chairperson ATAIC, Mr M Abdullah Yusuf
7. Relevant statistical information / data – who is also the Secretary General, Revenue
will be organized and maintained in a
common, mutually acceptable format,
Division and the Chairman CBR- in person,
with effective safeguards / security to
ensure data integrity but at the same
time readily accessible by Members.
8. ATAIC Members will make their Training
Institutions / facilities available for
training of each others taxation
personnel on a reciprocal, ‘no profit, no
loss’ basis.
9. As far as possible, Members will
endeavor to use state of the art but
“appropriate” technologies in imparting
instruction, including “information
technology.”
10. Members will also use dynamic but
“appropriate,” multi-dimensional
training methodologies, including
‘simulation modules,’ in imparting
instruction.
11. Members will consult each other on MR M ABDULLAH YUSUF, CHAIRPERSON, ATAIC, SECRETARY
curricula for different subjects in which GENERAL, REVENUE DIVISION, CHAIRMAN, CBR.
instruction is imparted in the training
institutions and will endeavor to to address the conference delegates on the
‘harmonize’ curricula used, as far as is final session of the conference. Mr Abdullah
practical and feasible.
12. There shall be special emphasis on Yusuf congratulated the delegates on a ‘job
providing training in ‘forensic audit,’ well done’ and exhorted them to make full use
and ‘computer forensics’ to taxation of the latest technological developments to
personnel. increase the efficiency and productivity of the
13. The imaginative use of information
technology, including computers and ATAIC taxation personnel. He said that while
related peripheral equipment, will be there was no need to try and “re-invent the
accelerated in training institutions. wheel,” nevertheless, it was necessary that
14. Malaysia will be “Best practices model” developing countries be aware of latest
in imparting instruction in ‘Forensic
Audit,’ ‘Computer Forensics’ and in the technological developments and be willing to
use of ‘Simulation Methodology’ in use such technologies after imparting suitable
training. training to the workforce. Proper training is
6
CHAIRPERSON ATAIC WITH DELEGATES FROM MALAYSIA

thus a ‘condition precedent’ to the ability of


tax administration to devise effective
CHAIRPERSON ATAIC WITH US TREASURY DEPTT DELEGATE
technological solutions to the many complex
problems faced in revenue mobilization. In
this context he referred especially to ‘data
warehousing’ and ‘information technology’
and advised ATAIC members to share
information in these and other areas of
mutual interest.

CHAIRPERSON ATAIC WITH ATAIC DELEGATES

Mr Muneer Qureshi, DG(DOT)(DT)


recapitulated the conference proceedings and
gave an update of the recommendations made by
the delegates for improvements in the ATAIC
Taxation training establishments. He expressed
the hope that given the range and quality of
facilities available at DOT(DT) it would
eventually be transformed into a regional
CHAIRPERSON ATAIC WITH DELEGATES FROM TURKEY training hub.

7
CONFERENCE OF HEADS OF TRAINING
INSTITUTIONS (DIRECT TAXATION) OF THE
ASSOCIATION OF TAX AUTHORITIES OF ISLAMIC
COUNTRIES AT THE DIRECTORATE GENERAL OF
INCOME TAX (TRAINING & RESEARCH),
LAHORE, PAKISTAN, FROM MARCH 12, TO
MARCH 14, 2007.

RECOMMENDATIONS OF THE DELEGATES


PARTICIPATING IN THE CONFERENCE.

The Reports as submitted by the Conference


Rapporteurs having been scrutinized, corrected /
amended, where necessary, and finally duly
approved by the respective Chairpersons in the
various Sessions,
It is hereby resolved that:

1. The officer’s of the (Taxation) Training


Institutions of the Association of Tax
Authorities of Islamic Countries (ATAIC) will
continue to meet at regular intervals to
discuss and consider issues pertinent to the
training of their taxation personnel.
2. All Members of the ATAIC shall participate
fully in Conferences / Workshops held and
absence will be avoided.
3. To improve interaction between Members,
special efforts will be made to overcome the
“language barrier” between Members.

1
4. Normally, English (UK) will be used as a
common medium of expression between
Members and Members will make efforts to
improve the English expression and
comprehension of their Taxation Training
Institutions personnel, especially those likely to
participate in International Conferences.
5. When ATAIC Members hold Conferences,
where possible, simultaneous translation
facilities
(English to Arabic) will be provided.
6. There shall be improved sharing of relevant
information between ATAIC Members and
the World Wide Web /Internet will be fully
and properly put to use in this context.
7. Relevant statistical information / data will be
organized and maintained in a common,
mutually acceptable format, with effective
safeguards / security to ensure data integrity
but at the same time readily accessible by
Members.
8. ATAIC Members will make their Training
Institutions / facilities available for training of
each others taxation personnel on a
reciprocal, ‘no profit, no loss’ basis.
9. As far as possible, Members will endeavor to
use state of the art but “appropriate”
technologies in imparting instruction,
including “information technology.”
10. Members will also use dynamic but
“appropriate,” multi-dimensional training

2
methodologies, including ‘simulation
modules,’ in imparting instruction.
11. Members will consult each other on curricula
for different subjects in which instruction is
imparted in the training institutions and will
endeavor to ‘harmonize’ curricula used, as
far as is practical and feasible.
12. There shall be special emphasis on providing
training in ‘forensic audit,’ and ‘computer
forensics’ to taxation personnel.
13. The imaginative use of information
technology, including computers and
related peripheral equipment, will be
accelerated in training institutions.
14. Malaysia will be “Best practices model” in
imparting instruction in ‘Forensic Audit,’
‘Computer Forensics’ and in the use of
‘Simulation Methodology’ in training.
15. Turkey (OBSERVER COUNTRY but active
participant) will be “Best practices Model” in
computerization and data warehousing.
16. Pakistan’s experience with ‘Self Assessment’ /
‘voluntary compliance,’ ‘Withholding
Taxation’ and ‘Joint Audit Training’ will be
referred to by Members in designing their
training programs.
17. The Pakistan Direct Taxation Training
Institution (DOT(DT)) will make necessary
arrangements to provide training in English
Language communication skills to ATAIC

3
Members desirous of receiving such training,
on a ‘no profit, no loss’ basis.
18. The ‘Informal Sector’ will receive special
emphasis in the Training curricula.
19. ATAIC Taxation Training Manuals will be
digitized and On-Line access by Members will
be enabled.

Issued by the Conference Convener, this 14th day of


March, 2007 and sent to all Members of the ATAIC.

(MUHAMMAD MUNEER QURESHI)


PAKISTAN.

DIRECTOR GENERAL,
Directorate General of Income Tax,
(Training & Research)
Sutluj Block, Allama Iqbal Town, Lahore,
Pakistan.
CC
1. MR M ABDULLAH YUSUF, CHAIRPERSON, ATAIC, SECRETARY GENERAL
(REVENUE DIVISION), CHAIRMAN, CENTRAL BOARD OF REVENUE, GOVERNMENT
OF PAKISTAN, for information.

2. Mr. Muhammad Talha, Member (HRM), CBR, for information.


3. Mr. Salman Nabi, Member (DT), CBR, for information.
4. All Conference Session Chairpersons & Co-Chairpersons, for information.
5. ATAIC Secretariat, CBR, Islamabad, Pakistan .

4
ATAIC
Association of Tax
Authorities of Islamic
Countries
Conference of
Heads of Training Institutions
(Direct Taxes)

Part – II

Conference Proceedings as
Recorded by the Rapporteurs

March 12–14, 2007

Venue: DOT Complex,


Lahore, Pakistan.
1
FOREIGN DELEGATES
I. KUWAIT
01. Mr. Muhammad W. Al-Wasmi
02. Mr. Abdullah Y. Al-Nami
II. MALAYSIA
03. Madam Noor Azian Abdul Hamid
Director
Malaysia Tax Academy
04. Madam Noraini Mustafa
Director
Human Resource
05. Mr. Zaid Abdullah
Principal Assistant Director
Audit Training Centre
III MOROCCO
06. Mr. Omar Al Madani
Head of Multilateral Co-op Unit
07. Mr. Mohammad Said Bentaouet
Manager
Central Training Department
IV PAKISTAN
08. Mr. Muhammad Talha
Member (Human Resource Management)
Central Board of Revenue,
09. Mr. Muhammad Muneer Qureshi
Director General
Directorate General of Training & Research
(Income Tax)
V. SUDAN
10. Mr. Ibrahim Mohamed El-Hāssan Ibrahim
Head of Training Administration
11. Bushra Mohamed El-Makki Al-Khalifa
Scientific Supervisor in the Training
Administration
12. Jalal Eldein Suleman Gibereel Osman
I. T Manager in the T.A.
VI. YEMEN
13. Al-Haj Mohammad Saeed
Yemen Tax Authority
VII. TURKEY [OBSERVER]
14. Fayyaz Yazar
Chief Tax Inspector
15. Mr. Hassan Kaymak
2
16. Bulent Buyukdigan
Chief Revenue Controller
VIII IBFD [OBSERVER]
17. Aurobindo Ponniah
International Bureau of Fiscal Documentation
(IBFD)
Malaysia
18. Dr. V. Van Kommer
Manager Government Consultancy
International Bureau of Fiscal Documentation
(IBFD)
P.O. Box 20237,
1000 HE Amsterdam,
Neatherland
IX. USA [DEPTT. OF TREASURY] [OBSERVER]
19. Lee Niederman
Regional Training Coordinator

3
FIRST SESSION:
Chairperson
Madam Noor Azian Abdul Hamid,
Director Malaysian Tax Academy
Co-Chairperson
Mr. Salman Nabi, Member (Direct
Taxes), CBR

SECOND SESSION
Chairperson
Co-Chairperson
Mr. Muhammad Talha, Member (HRM),
CBR

THIRD SESSION:
Chairperson

Co-Chairperson
Mr. Abudl Razzak, Member (Audit),
CBR

FOURTH SESSION
Chairperson
Co-Chairperson
Maj. Gen. ® Muhammad Yasin, Member
(Admn.) CBR

FIFTH SESSION
Chairperson
Mr. Omar Al Madni, Head of
Multilateral Cooperation Unit,
Morocco
Co-Chairperson

4
SIXTH SESSION
BRAIN-STORMING

SEVENTH SESSION
Chairperson
Mr. Fayyaz Yazar, Chief Tax
Inspector, Turkey
Co-Chairperson
Mr. Mahmood Alam, Director General
of Training (Customs, Sales Tax &
Federal Excise), CBR

5
Resource Persons

Mr. Salman Nabi Member (Direct Taxes),


Central Board of
Revenue
Mr. Muhammad Talha Member (HRM), Central
Board of Revenue
Maj Gen ® Muhammad Member (Admin),
Yasin Central Board of
Revenue
Maj Gen ® Sikandar Director General Civil
Shami Services Academy,
Lahore
Mr. Abdur Razzak Member (Audit),
Central Board of
Revenue
Mr. Mehmood Alam Director General of
Training & Research
(Customs, Sales Tax &
Federal Excise),
Islamabad
Mr. Nasir Khan Chief Executive
Officer, Pakistan
Revenue Automation
Limited, Islamabad

6
RAPPORTEURS

Ms. Iram Adnan Additional Director,


Directorate General of
Training & Research
(Direct Taxes), Lahore.
Ms. Amna Faiz Bhatty Deputy Director,
Directorate General of
Training & Research
(Direct Taxes), Lahore.
Dr. Yasmin Fatima Deputy Director,
Directorate General of
Training & Research
(Direct Taxes), Lahore.

7
ORGANIZING COMMITTEE

Mr. M. Abdullah Yusuf,


Chairperson ATAIC Chairman, CBR
Mr. M. Munir Qureshi,
Chief Organizer Director General, DOT,
Lahore

Programme Coordinator Mr. Ihsan Elahi Tariq,


Director, DOT Lahore
Mr. Shahid Bashir,
Incharge Administration Additional Director, DOT
Lahore
Dr. Hamid Ateeq,
Incharge Programme & Additional Director, DOT
Publication Lahore
Ms. Iram Adnan,
Incharge / Liaison Additional Director, DOT
Cultural Activities
Lahore
Mr. Imran Raza Kazmi,
Incharge Protocol Additional Director, DOT
Lahore
Mr. Mohammad Atiq,
Incharge MIS Additional Director, DOT
Lahore
Ms. Amna Faiz Bhatty,
Coordinator Deputy Director, DOT
(Publication)
Lahore
Coordinator Yasmin Fatima Dr., Deputy
(Horticulture & Admin) Director, DOT Lahore

Coordinator (Security) Mr. Badar Zaman, Deputy


Director, DOT Lahore

Interpreter Ms. Nasreen Khalid

Layout & Design Mr. Zafar Iqbal

8
ATAIC Conference. Lahore, Pakistan.
March 12 - 14.

Date: 12-03-07.
DAY ONE
Venue: DOT Complex,
Lahore, Pakistan.

OPENING SESSION

The session started at 1000 hrs and a welcome


speech was given by the D.G., DOT.

FIRST SESSION:
Chairperson
Madam Noor Azian Abdul Hamid,
Director Malaysian Tax Academy
Co-Chairperson
Mr. Salman Nabi, Member (Direct
Taxes), CBR
Rapporteur
Ms. Iram Adnan, Addl. Dir, DOT,
Lahore

The delegates read papers on following topics:


Topics :
a) Vision of CBR Training Strategy.
b) Training at the Civil Services
Academy.
c) Computerization of Tax Records and
Selection of Cases for Audit.
d) Training need Analysis.

9
SESSION-I:

Mr. Muhammad Talha presented the paper


on “Vision of C.B.R. Training Strategy,” and
made specific reference to re-organizing the
existing trainings and re-focusing on the
over-all compliance and quality service viz-
a-viz reforms.
Central Board of Revenue is pursuing
values like integrity, professionalism, team-
work and transparency.
Coupled with such values, C.B.R. is, at
the same time, striving for increase in
revenues and tax base. It is ensuring end to
end automation of work processes and tax
payer friendly environment. Above all, it is
earnestly working towards honest and
efficient tax administration. To do this, it
has already restructured its formations and
functional lines and has developed a well
trained and motivated work force in order to
develop and manage a more efficient revenue
administration.
As regards the “Training Policy” of
C.B.R., the punch line is that training and
development must have a clear benefit for
C.B.R. For this, C.B.R. has gone even a step
further by supporting self-development or
life style training. Above all, the Board is
building synergy and consistency in training
programs meant for, both, Income Tax and
Customs groups, so as to have them as one
organization under C.B.R.
The existing training programs are at
the level of induction, during service (e.g.,
I.T., Management, Reform Specific Courses
etc). C.B.R. also offers various foreign
trainings as well as various train the
trainer courses. Staff training for junior
cadres is also an important aspect of
training and it covers subjects like I.T. Law
and Communication skills.

10
Training Facilities

I. ENTRY LEVEL TRAINING (BS 17)


Assistant Commissioners/Collectors
1. Common Training Program (CTP) at Civil
Services Academy (6 months)
2. Specialized Training Program (STP) at the
Directorates General of Training
3. MBA Tax Management at Institute of Business
Administration (IBA), Karachi

II. MID TO SENIOR LEVEL TRAINING


(BS 17 to BS 21)
WORLD BANK CAPACITY BUILDING (TARP)

(i) Officers Training Programs


Strategic Planning & Leadership Finalized with LUMS
(BS 20 & 21)
Strategic Change Management Finalized with LUMS
(BS 20 & 21)
Management & Team Building Completed at Karachi
(BS 17-19) (400 Officers)

Communication & Presentation Completed at Karachi


Skills (BS 17-19) (400 Officers)

(ii) Train the Trainer Program


• Arrangement with the Lahore University of
Management Sciences
• Case Development expertise

(iii) Staff Training


• PC skills
• Business communication skills
• English language
• Core/Technical functions related training
11
At this point the delegate from Malaysia
inquired about the resources and number of
trainers available with the Central Board of
Revenue.
Mr. Muhammad Talha, Member HRM and
presenter of the paper responded to the query
with figures. For 25,000 work force, 50
trainers are available and as training is on
top of the priority list, funding is no
problem. At this point, Mr. Munir Qureshi,
Director General, DOT added that apparently
50 trainers for such a large workforce may
seem low, but the Directorate General of
Training also has the facility of out-
sourcing certain subjects, whenever required.
Mr. Salman Nabi, Member (Direct Taxes)
from Pakistan added that apart from the
regular trainers and facility of out
sourcing, the junior cadre is trained /
tutored at respective zonal hubs by their own
officers, too.
Mr. Ibrahim M. Ehassan from Sudan wanted
to know as to how C.B.R hoped to achieve
taxpayer fraternity. The query was responded
by Mr. Salman Nabi stating that although
Pakistan has taxpayers, yet, all of them are
not filers. To combat this situation, a
database is being developed. The idea is to
have data and then to move scientifically.
Mr. Omar Al Madani from Morocco inquired
about the recruitment process in vogue in
C.B.R. Mr. Muhammad Talha explained that
keeping in line with the re-structuring
process, all recruitments are being made
through Internal Job Postings. It follows a
pathway of interview, appointment, evaluation
and finally an integrity check.
Madam Noor Azian from Malaysia was
interested to know as to what programs for
taxpayer education were adopted by C.B.R. The
query was responded by Mr. Muhammad Talha. It
was informed Facilitation and Tax Payer’s
Education (FATE) caters to this aspect and

12
collaborates with media, public and other
organizations.
The presentation was applauded and the
Chairperson invited the next speaker for the
day.
The next paper was read by Maj. Gen (R)
Sikandar Shami, D.G. Civil Services Academy,
on the topic of “Training at the C.S.A”.
The speaker explained the selection
procedure, the academy’s objectives and the
organization of courses / syllabus.
The civil servant initially undergoes an
exam conducted by Federal Public Service
Commission. Later, psychological test and
interview are to be cleared. Age limit for
the above is 21 to 28 years.
The Civil Services Academy inculcates
harmony among officers of various regions of
Pakistan. It also creates in them an
understanding of socio-political /
administrative issues and it also ensures
that elements like integrity, discipline and
efficiency are the hall mark of officers.
Special stress is focused on leadership
skills with increased emphasis on practical
exercises and case studies.
Madam Nooraini from Malaysia inquired if
all exams of C.S.A were required to be
cleared or the officers were graded out of
the benchmark of 500 marks only.
Presenter of the paper informed that all
subjects were required to be passed in the
Civil Services Academy.
Mr. Omar Al Madani from Morocco wanted
to know if there was some system of reward
etc. Mr. Shami informed that a large number
of awards and medals etc., are given to the
excelling officers. Mr. Salman Nabi from
Pakistan added that in the Income Tax Group
the top 3 officers were awarded 3 lap tops by
Central Board of Revenue this year.

13
With this the second presentation for
the day concluded.
Mr. Fayyaz Yazar from Turkey presented
the third paper for the day titled
“Computerization of Tax records and selection
of cases for audit.”
He informed the group about
computerization, data warehouse, revenue
administration and Turkish Tax System.
At this stage Turkey has the biggest
portal with 2,500,000 taxpayers. It is saving
6,000 tons of paper (2.5 million Euro/yr.)
along with 14,000 man-month (3.4 million
Euro/yr.) annually. It has successfully
enforced E-Declaration, E-Invoicing, Call
Centres, E-Institutions and E-government etc.
The ongoing projects include Business
Continuity, Disaster Recovery Centre, Web
based application and Voice over IP
application etc. At this juncture, Mr. Munir
Qureshi from Pakistan was desirous to know as
to what steps were taken against data-
integrity and if there had been any incidence
of data-corruption. Mr. Fayyaz informed that
the system has security infrastructure like
firewall IDS & IPS, anti-virus, E-mail
firewall and content filtering. Side by side
to these, managerial measures for security
are also ensured which comprise of
information security policy document,
information security operational procedures,
information security tests and information
security personnel. Mr. Fayyaz also informed
that so far, no case of data corruption has
occurred.
Dr. Mohamed S. El-haaj from Yemen
inquired about the main problems faced by the
Turkish Tax Authority in the process of
automation. The presenter admitted that
although optimal goal in automation had not
been achieved as yet but efforts are in field
to educate not just the tax authorities but
also the tax payers.

14
With this, the third presentation for
the day concluded.
The fourth paper of the conference was
read by Mr. Munir Qureshi from Pakistan
titled “Training Need Analysis”,
(Multidimensional and Integrated Training).
Mr. Munir Qureshi briefly out lined the
sequence of training programmes before going
into the details of multi-dimensional
training. It was informed that where as the
entry level training is not whole
encompassing the later specialized and
capacity trainings include audio-visual
techniques, simulation, role play etc. Net
objective for multi-dimensional training is
to ensure that un-familiar knowledge is also
understood well. Here, the presenter referred
to the topic of informal economy which has
lately been taken up as part of the holistic
view of teaching at D.O.T. The presenter also
informed that the concept of forensic
accounting has also been included in the
revised syllabus. Special attention is paid
to adult learning by giving officers
practical problems and application of past
experiences in an informal environment
through a variety of training methods. The
presenter also informed that Skill Management
Courses are handled by DOT itself, where the
concept development has been outsourced.
At this point, Mr. Zaid from Malaysia
asked about the nature / content of audit
module. Mr. Munir Qureshi informed that the
module for Audit has been designed by the
Audit Wing of CBR itself and DOT is only
facilitating them by providing the expertise
and infrastructure.
No more questions were asked and the
fourth presentation was concluded with
applause.

15
SESSION-II
In the afternoon session the
delegate from Malaysia made her
presentation on “Simulation
Techniques”.
Madam Azian informed that the training
curriculum for Malaysian Tax Academy had been
revised. Now the areas of focus are
enforcement, customer service and taxpayer
education and the modules have a direct link
with them. She informed that new training
centers have been formed to cope with
Investigation, Audit and Stamp duty. Foreign
Experts are given assignments of subjects
like transfer pricing, criminal investigation
computer forensics and tax treaty etc. She
informed that simulation training at
Malaysian Tax Academy is operative since 2004
which caters to audit training. Target group
for such audit simulation is the desk
officers who do not have an accounting
background. She also discussed the advantages
and disadvantages of simulation training.
The presenter enlightened the group viz-
a-viz Forensic Investigation. She said it
followed 4 phase pathway of investigation
consisting of problem recognition, planning
and review, evaluation of evidence and
finally reporting.
The methodology includes bank deposit
analysis, net worth analysis, expenditure
method and financial investigation.
At this juncture, Mr. Muhammad Talha
enquired as to whether there was some
specific criteria for selection for courses.
The presenter informed that no foreigners are
admitted to these courses. She also informed
that foreign participants are catered to in
other courses which are specifically
organized for them like GTAC General Tax
Administration Course, Tax Enforcement and
Tax Treaty Course.

16
Mr. Omar Al-Madani from Morocco enquired
whether there were any other courses for
foreigners other than tax courses. To this,
the reply was in the affirmative. The
presenter suggested she could give a list of
such courses later.
The observer from USA Mr. Lee Niederman
enquired if live cases / records were brought
from the offices to the academy. The
presenter informed that in case of live cases
the trainees are taken to the premises.
Finally, Ms. Iram Adnan from Pakistan
was desirous to know about the fate of hard
discs of computers once they are removed from
taxpayers’ computers and taken to Income Tax
forensic lab.
The presenter informed that the
respective officer has a regular liaison with
the forensic lab and proceedings.
Ms. Iram Adnan specifically enquired as
to the kind of software being used by the
forensic lab. To this, the presenter
suggested that the exact information to this
query may be sent on her return to Malaysia.
With this, the presentation was
concluded and applauded.
Seventh and final paper for the day was
read by Mr. Nasir Khan of Pakistan titled
“Tax Management System (TMS)”.
The presenter explained the existing
I.T. systems, future mode, improvements,
timeline and the risks involved. The group
was informed about Taxpayer registration,
core tax management, e-filing systems,
payment recording systems, verification and
refund processing etc.
The process of automation is however
open to risks, writing the right software
being one of them. Getting the people to use
it is even harder. PARAL needs to conduct
diagnostic studies more often as to avoid
mistakes and to precisely identify when the

17
bottle necks and risks exist. It also needs to
link attributes with reality.
At this point, Mr. Muhammad Talha from
Pakistan enquired as to what exactly is meant
by enforcement module. The query was
responded by the presenter, according to whom
it is rectification of an anomaly on
detection.
There were no more questions and the
second session of the conference was thus
concluded.

18
Date: 13-03-07.
DAY TWO
SESSION III
Co-Chairperson
Maj. Gen. ® Muhammad Yasin, Member
(Admn.) CBR
Rapporteur
Ms. Amna Faiz Bhatty, Dy. Dir, DOT,
Lahore

The delegates of the participant countries


read their papers on “Training Methodology –
Country Models”:
The proceedings of the day began with paper
on “TRAINING NEEDS ANALYSIS” [WAYS AND MEANS]
read by Mr. Omar Al Madani (Head of
Multilateral Cooporation Unit), Morocco,
Mr. Omar explained that training of tax
officials in Morocco was the responsibility of
a central organization by the name of General
Tax Administration (GTA). Within the central
training department the GTA, there were two
different units:
- Initial training and international
cooperation unit in charge of training of
the newly recruited tax officers as well
as training abroad;

- Continuous training unit in charge of


training of tax officials in function at
the GTA and practical training at the end
of studies for students of high
educational institutions and management
schools.
Training methodology (Ingénierie de la
formation) of GTA consists of planning,
implementing and following up training
programmes with the ultimate goal of success
of the organisations’ improvement projects.

19
The training methodology includes five main
stages:
• Identification and analysis of training
needs
• Elaboration of training planning
• Implementation and follow up of training
• Evaluation of training
• Training auditing
Mr. Al-Madani further elaborated that the
GTA training programs are organized taking
into account strategic orientations of the
Ministry of Finance and gap between the
required competence and the existing one. The
training program is elaborated annually by the
central training department jointly with
regional offices taking into consideration
priorities, theme’s pertinence and
environmental context. The implementation and
follow up of this proceedings is performed by
heads of regional training centres and central
department. He explained that as training
evaluation contributes to management control
of training actions , there are two types of
evaluation: immediate and posterior. The
immediate evaluation also called “Hot
Evaluation” is performed through forms filled
in by participants submitted anonymously
immediately at the end of training session.
This evaluation allows the central department
of training to be informed of:
- Satisfaction level of the participants;
- Pedagogical skills of instructors;
- Relevance of the chosen topics;
- Quality of the training proceedings;
- Expectations of the participants.
Posterior evaluation or “Cold Evaluations
“ is a project still in pipeline to be
performed in cooperation with France and would
allow the GTA to determine methods, techniques
and different means and expected feed back.
20
Similarly for audit of training imparted,
Ministry of Finance has entrusted the General
Inspection of Finance (IGF) to conduct the
evaluation of training proceeding system.
He concluded his presentation with the
remarks that training’s main acquisition
remains the tax administrations’ awareness of
its strategic importance within the new human
resources policy and its role regarding the
personnel retraining. The house was then open
to a Q & A session. Mr. Munir Qureshi,
Director General,. DOT and participant from
the host country Pakistan inquired about the
sort of technologies being used in imparting
training. Mr. Al-Madani explained that in
addition to local training, tax officials were
being sent to OECD countries particularly
Turkey for tax policy modernization trainings.
To another query raised by Mr. M. Munir
Qureshi it was explained that separate audit
training sessions were organized. Mr. Abdul
Razzaq, Member (Audit) CBR who was also the
Chairperson of the 3rd Session inquired about
the criteria adopted for taking retired
officials as instructors in the training
institutes. It was explained by Mr. Madani
that only people with brilliant record of
performance were taken as instructors.
This was followed by a presentation by Mr
Ibrahim Mohamed Ehassan Ibrahim (Head of T.A),
the delegate from SUDAN. In his presentation
he explained that the Sudanese economy has
expanded over years and as a result there is
an independent full-fledged entity known as
“CHAMBER OF TAXATION” which handles taxation
matters. This Chamber employs more than 9000
person with 190-regional offices handling
taxation matters in various state of Sudan.
This Chamber of Taxation comprises of seven
major Directorates, namely;
• General Directorate for companies
• General directorate for V.A.T.

21
• General Directorate for personal income
tax
• General directorate for stamp duties
• General Directorate for training
There is a General Directorate in every
state to handle taxation matters in the
respective state. In addition 5 unified tax
centres have been opened up in 2004 to handle
companies taxes in the capital. These centres
provide one window system of tax collection
with the objective of simplified tax
procedures and handling of tax matters of
corporate tax payers.
Mr. Ibrahim explained that the employees of
Chamber can be categorized into three major
types:
1) Heads of General Directorate
2) Tax Assessment and Collection
Inspectors
3) Administrative and Supervisory Staff
Each of these three categories of officials
require different training modules as the
skill needed for job performance is different
in each case. The Training Directorate of the
Chamber of Taxation has two well-equipped
classrooms along with a fully equipped
Computer Lab to provide training to all
officials. The training capacity gap is
however bridged by institute’s cooperation
with other public and private training
institutes and universities (out-sourcing).
The Directorate also had cooperation ties with
training centres in Egypt, Syria and Malaysia.
Mr. Ibrahim then shared the governments’
future vision of five years training plan
2007-2011. The year-wise targeted number of
trainees is as under:

22
Year Targeted number of
trainees
2007 2500
2008 3000
2009 3500
2010 4000
2011 4500

The delegate further elaborated that since


the year under review, the Directorate has
started computer literacy program in its
Chamber by holding computer courses from all
computer illiterate employees.
He then concluded his presentation that it
should be a high agenda for training
department to develop need assessment
strategies and promote training for better
utilization of human resources. In the Q & A
session following this presentation, it was
inquired by the delegate from Yemen as to
whether there was any classification /
categorization of taxpayers. It was explained
by the delegate of Sudan that there was a
classification of taxpayers in Sudan and
incidentally five unified tax centers have
been set up in the year 2004 to handle
corporate cases. Mr. M. Munir Qureshi asked
about the state of computerization in the
department. To this query it was explained
that uptill 2006 there was no computerization
of the Chamber of taxation, however currently
initiative was underway to start the process
of computerization.
The next presentation was by Madam Noraini
Mustafa (Director HR) Malaysia. Ms. Noriani
presented her paper on training methodology
being followed by Malaysia with regards to
training of its tax administrators. It was
explained by Ms. Noriani that training of tax
officials in Malaysia is being imparted by the
following authorities / institutes:
23
• Malaysian Tax Academy (MTA)(APM)
• Human Resource Development and Training
Unit Organizational Development
• Division of Administrative Department
(BPO)
• Investigation Training Center (PLAS)
• Audit Training Center (PULADIT)
• Stamp Duty Training Center
She further elaborated that training in
Malaysia is divided into four levels, namely;
- Elementary level
- Intermediate level
- Advance level
- Transactional level
The elementary training level is imparts to
new entrants to the service and the courses
taught include; Induction course, Basic
taxation course and Basic Management Course.
The training methodology followed includes
Teachers-centered methods (TTC). These methods
includes Controlled discussion, demonstration,
guided discussion, lectures and tutorial
sessions. The other methodology is Student-
centered methods (TSC) and this method
includes case study, group discussion,
listening and observing, mini projects,
workshops and assignments. The new entrants
are also provided on job training which
includes job rotation and coaching method.
It was explained that the Intermediate
level training is imparted to officers having
put in 3 – 10 years in service. The focus of
these training is to develop officers in
certain fields and to realize the aspiration
to become a focus organization. The
participants of the training are taught
advanced courses on taxation to enhance the
knowledge, understanding and analytical skills

24
towards accounting principles and examination
of business records.
The advanced level of training is reserved
for officers having put in more than
10-years in service with the objective to
retrain and re-skill and to strengthen the
competencies. The main focus areas of these
trainings are -
– Transfer pricing
– Forensic computer,
– Forensic accounting
– Criminal investigation
– Advanced auditing,
– Advanced stamp duty
– Advanced financial and
– Management
The last and the most important level of
training is the transitional level of training
which is imparts to officers with 5 - 2 years
of service left. The purpose of this training
was to ease the passage into retirement and
the topics for this training include,
psychological counseling and planning for
retirement, employees provident fund
responsibilities towards employee’s
retirement, nutrition and healthcare
management, financial and investment
management and business opportunities and
second career after retirement.
Further, she explained that the academy
provides opportunities for further studies in
Masters and Doctorate Programs from both local
as well as foreign universities. In addition
collaboration with foreign organizations such
as JICA (Japan International Cooperation
Agency), IBFD, IRS and ASEAN in the field of
training of tax officials is being actively
pursued. She concluded her well structured
presentation by stating that the vision of
Malaysian Tax Training is to be a learning
25
organization which encourages continuous
learning process.
In the following Q & A session, it was
inquired by Mr. Aqeel Zafar Ul Hassan (RCIT,
Karachi) as to how long, the transitional
level of training has been in place and the
subject which draws the most attention from
the trainees. Ms. Noriani explained that this
training is being imparted since last five
years with the main objective to help the
retiring officers in adjusting to new
realities and psychological training remains
the most favourite topic amongst the
participants. She further elaborated that the
participants are also given know-how of small
cottage industries so as they can explore
future business possibilities in those
industries. Mr. M. Munir Qureshi inquired
about the system of feed back from trainees in
place in the Malaysian Tax Academy. Ms.
Noriani was ably assisted by Madam Noor Azian
Abdul Hamid (Director, MTA) in answering this
query. She explained that the trainees at the
end of each training were asked about their
feed back on trainers through a questionnaire.
She further elaborated that they were in the
process of developing of questionnaire for
structured feed back both from the new offices
and their supervisors. Mr. M. Munir Qureshi
further inquired about any psychological
profiling of officers being done before their
actual postings in the field. It was explained
that psychological profiling of officers was
only done prior to their selection for
training.
The delegate from Turkey Mr. Fayyaz Yazar
in his presentation explained the
computerization of tax department in Turkey.
The computerization included tax office
computerization projects (VEDOP), citizen ID,
e-Declaration, Call Centers, Electronic Bank
Collection Processing System, Internet Office,
Management Information System etc. In tax
office automation project (VEDOP) there is a
full automation of offices which has increased
26
the productivity and has helped in fight
against un-registered economy. There is
taxpayer facilitation through e-filing of
returns. Similarly tax collection via banks is
also facilitated. The e-declaration stores
electronic declarations and collects
information from data warehouses. The e-
declaration commenced in October, 2004 and has
been widely accepted in a short time by the
taxpayers. The infrastructure is ready for
digital signature. The call centers
established by the Turkish Govt. were the
first call center application in public
sector. And serve the important purpose of
solving taxpayer problem instantly.
Mr. Yazar explained the related concepts of
E-government, Internet offices, management
information system etc. comprehensively. In
the Q & A session, it was inquired as to
whether data warehouse was connected to the
national data base. It was explained that the
data base was fully connected.

SESSION-V
The last presentation of the day was by the
Yemeni delegate Dr. Mohamed S. El-Haj. He
expalined that the Yemen Tax Authority was
established in 1969. The objective of this
authority was to give top priority to
development of employees' capabilities and
skills and the improvement of their
performance. The training imparted includes
technical, legal and accounting training.
Employees are sent for regular training to
Egypt and Syria as well. In 2003 the General
administration for training was established
replacing the Tax Institute. The training
imparted includes determining the training
needs, analyzing tasks and determining
efficiency problems. The responsibilities of
the training authorities includes the
following:
• Determining the training topics

27
• Preparation of the training material in
final form
• Determining training methods
• Supplying training equipments and
materials
• Preparation of trainers
He concluded his presentation by
emphasizing the need for greater cooperation
in the field of tax training amongst memeber
countries. No questions were asked by the
house at the end of this presentation.

28
Date: 14-03-07.
DAY THREE

SESSION-VI
The session started at 0900 hrs on 14th
March, 07. For brain-storming participants
were divided into three syndicates for group
discussions on different topics:

SYNDICATE-I

TOPIC:INFRA-STRUCTURAL/HUMAN RESOURCE REQUIREMNTS

S# Name Country
01 Madam Noraini Mustafa Malaysia
02 Mr. Bushra Mohamed El-Makki Al- Sudan
Khalifa
03 Mr. Abdullah Y. Al-Nami Kuwait
04 Mr. Hassan Kaymak Turkey
05 Mr. Lee Niederman USA

SYNDICATE-II

TOPIC COURSE DESIGN AND INSTRUCTION METHODOLOGIES

S# Name Country
01 Al-Haj Mohammad Saeed Yemen
02 Mr. Zaid Bin Abdullah Malaysia
03 Mr. Jalal Eldin Suleman Sudan
Gibereel Osman
04 Mr. Mohamed Said Bentaouet Morocco
05 Mr. Bulent Buyukdigan Turkey

29
SYNDICATE-III

TOPIC SCOPE OF COOPERATION IN TRAINING AMONGST


MEMBER COUNTRIES

S# Name Country
01 Madam Noor Azian Abdul Hamid Malaysia
02 Mr. Ibrahim Mohamed El-Hassan Sudan
Ibrahim
03 Mr. Muhammad W. Al-Wasmi Kuwait
04 Mr. Omar Al Madani Morocco
05 Mr. Fayyaz Yazar Turkey

BRAIN STORMING SESSION


Chairperson
Mr. Fayyaz Yazar, Chief Tax
Inspector, Turkey
Co-Chairperson
Mr. Mahmood Alam, Director General
of Training (Customs, Sales Tax &
Federal Excise), CBR
Rapporteur
Dr. Yasmin Fatima, Deputy Director,
DOT, Lahore

The brain-storming sessions started at 1130


hrs. Presentations were given by the
syndicates on the topics assigned to them.

The sessions being highly interactive had


to be extended.

The first syndicate comprising Madam


Noraini Mustafa, Malaysia, Mr.Bushra Mohamed
El-Makki Al-Khalifa, Sudan, Mr. Abdullah Y.
Al-Nami, Kuwait, Mr. Hassan Kaymak, Turkey,
and Mr. Lee Niederman from USA. Mr. Lee
30
Niederman lead the syndicate. The participants
discussed and made recommendations on the
topic of “INFRA-STRUCTURAL / HUMAN RESOURCE
REQUIREMENTS”.

The second syndicate comprises of Al-Haj


Mohammad Saeed, Yemen, Mr. Zaid Bin Abdullah,
Malaysia, Mr. Jalal Eldin Suleman Gibereel
Osman, Sudan, Mr. Mohamed Said Bentaouet,
Morocco, Mr. Bulent Buyukdigan from Turkey.
Mr. Zaid Bin Abdullah lead the syndicate.
After discussions recommendations on the topic
of “COURSE DESIGN AND INSTRUCTION
METHODOLOGIES” were made.

Madam Noor Azian Abdul Hamid from Malaysia


lead the third syndicate which comprised of
Mr. Ibrahim Mohamed El-Hassan Ibrahim, Sudan,
Mr. Muhammad W. Al-Wasmi, Kuwait, Mr. Omar Al
Madani, Morocco, Mr. Fayyaz Yazar from Turkey
and they made recommendations on the topic of
“SCOPE OF COOPERATION IN TRAINING AMONGST
MEMBER COUNTRIES”.

All presentations were very precise and


comprehensive, they covered all aspects of the
given topics. Director General D.O.T. Mr. M.
Munir Qureshi discussed the recommendations in
his closing address of the conference.

31
HEADS OF DELEGATIONS
APPROVALS’
COUNTRY Head of Delegation SIGNATURE

MALAYSIA Madam Noor Azian Abdul


Hamid
Director
Malaysia Tax Authority

MOROCCO Mr. Omar Al Madani


Head of Multilateral Co-op
Unit

SUDAN Mr. Ibrahim Mohamed El-


Hassan Ibrahim
Head of Training
Administration

YEMEN Al-Haj Mohammad Saeed


Yemen Tax Authority

TURKEY Fayyaz Yazar


Chief Tax Inspector

32
ATAIC
Association of Tax
Authorities of Islamic
Countries
Conference of
Heads of Training Institutions
(Direct Taxes)

Part – III

APPENDIX
March 12–14, 2007

Conference Proceedings as
Recorded by the Rapporteurs
Venue: DOT Complex,
Lahore, Pakistan.
ASSOCIATION OF TAX AUTHORITIES OF

ISLAMIC COUNTRIES (A.T.A.I.C)

Conference of Heads of Training

Institutions.

ADDRESS BY MUHAMMAD MUNEER QURESHI, DIRECTOR

GENERAL (DOT).

Directorate General of Income Tax (Training & Research),

Sutluj Block, Allama Iqbal Town,

Lahore, Pakistan.

12th to 14th March 2007.

1
Ladies and Gentlemen!

AssalamoAlaikum!

On my own behalf & on behalf of Dot faculty & the Chairperson

ATAIC, Mr M Abdullah Yusuf, who is also the Secretary

General Revenue Division and the Chairman of the Central

Board of Revenue, I welcome all our distinguished guests and

especially the distinguished foreign delegates, to the first

Conference of ATAIC Heads of Taxation Training Institutions.

Mr M Abdullah Yusuf, who has been the driving force behind

this Conference, is represented here today by the Member

Direct Taxes, CBR, Mr Salman Nabi. Much as Mr M Abdullah

Yusuf wanted to welcome you all personally, he is unable to do

so because of sudden, urgent and pressing commitments at

Islamabad. I am sure you will understand the position and

excuse his absence.

For those of you who may be mystified by the term

2
‘DOT’ -which word you will be hearing quite a lot

today and in the next two days of the Conference, I

have to say that this three letter abbreviation is a

hangover from the days of past when there used to just a

directorate of training .That is when the acronym ‘DOT’ was

born. Today we have the Directorate General of Income Tax

responsible for Training & Research. But such is power of

language, that the abbreviation ‘DOT’ persists. This institution

trains all officer’s of the Income Tax Group -and also under the

new dispensation presently in force, all support staff of the

income tax deptt- right from the time of their induction into the

deptt , the so called ‘pre-service’ Specialized Training Program,

up until the time that they become senior supervisors through

the continuous capacity building program.

3
For many years after independence in 1947, tax personnel in

Pakistan were trained through an informal training process. The

Directorate of Training

( DOT) became a separate functional unit in the Income Tax

Deptt for the first time in 1954 and was set up in rather

ramshackle rented premises at Karachi. It shifted to Lahore in

1973 but moved to it’s present location in 1986 and shortly

therafter it’s mandate was enlarged from imparting training to

imparting training and conducting research. Recently it has

been further enlarged to advise government on fiscal policy

issues.

This institution is Headed by a Director General and the DG

and all operational and support staff are appointed by the

Central Board of Revenue in exercise of powers expressly

stipulated in the statute ie the Income Tax ordinance 2001. All

appointments are through a competitive selection process and

consistent with the organizational reform process currently

underway throughout the departments of Income Tax,

4
Customs, Sales Tax and Federal Excise, all personnel so

selected are entitled to a special enhanced compensation

package of double the basic salary.

As I said DOT moved to it’s present premises in 1986. This is a

large campus with a total area of some (15) acres. There is an

extended ‘green belt’ of lawns, flower beds, and a plant

nursery.

Dot is very well equipped in terms of training facilities and

physical infra structure .

It has 4 state of the art computer labs at the main campus and

three additional labs at Karachi and Islamabad where the sub

offices are located. All three campuses have full internal

networking, internet connectivity and all ancillary equipment

including UPS equipment for labs as well as the entire campus,

multi media projection and video conferencing.

5
The last time DOT played host to ATAIC group members was

in 2005 when a 12 day Workshop on Revenue Forecasting was

held.

In Nov 2006, DOT participated in the 3rd Technical Conference

on Revenue mobilization organized by the Central Board of

Revenue at Islamabad. It was at the end of that Conference

that the Chairman CBR, Mr M Abdullah Yusuf’, reminded me

with a subtle hint of impatience that a Conference of ATAIC

Heads of Training Institutions was long over due.

At DOT we did not waste any time thereafter and

ALHAMDULLILLAH today our efforts have borne fruit.

The purpose of holding this conference is to look in-depth at the

existing arrangements for training of direct tax personnel in the

ATAIC group, to evaluate different options to improve the same

and develop a broad consensus on the key issues involved and

the best practices in this area.

6
The poor yield from taxation is a feature common to many

countries of the ATAIC group. The tax to GDP ratios are well

below those achieved in the developed countries where a yield

of 20% and above vis a vis GDP is not uncommon. And in the

highly developed Scandinavian countries tax to GDP ratios of

40% and above are commonplace.

In the ATAIC group the average aggregate revenue for the

entire group comes to just 419.5 bill dollars US which is just

12% of the overall GDP of 3474 billion dollars. Considering that

the aggregate revenue includes both tax and non tax revenue,

the yield from taxation is certainly very much on the lower side.

Needless to say this needs to be improved drastically. Only

three countries of the ATAIC group, oil rich Kuwait, Qatar and

Iran are able to generate aggregate revenues significantly in

excess of their aggregate expenditures.

Revenue mobilization has received due attention at the 3rd

ATAIC Technical Conference in Nov 2006 and a broad

7
consensus has emerged with regard to the measures required

to improve the Tax to GDP performance.

Revenues are desperately needed to launch effective programs

of economic development. Marginal increases in revenue are

not sufficient and will not sustain a meaningful program of

economic development sufficient to generate growth on a scale

necessary to lift the economy on to a new much higher

threshold of development. Developing countries, like most

members of the ATAIC, have a lot of catching up to do. They

lag far behind the developed countries of the world and are

saddled with serious problems of poverty, highly skewed &

inequitable distribution of income, poor savings, large fiscal

deficits and serious population pressures in many countries.

Significant Structural change of the economy is required to alter

the complexion of the economy from largely agricultural to a

healthy mix of agricultural and industrial segments

8
Almost all the ATAIC group members have embarked on a

program of tax reform that includes re-structuring and

revamping the training establishment.

In Pakistan, in 2000, a special Commission set up by

government made critical evaluation of the existing tax system

and came forth with reaching recommendations for it’s

improvement. That the existing system had failed to deliver was

evident from the poor yield from taxation, the widespread

corruption in the tax deptt and ofcourse endemic tax evasion.

Among the many recommendations made by the Commission

was that for major changes in the training establishment set up

for tax personnel and for new emphasis on the training of ALL

personnel – not just the officer’s.

The need for such drastic change arises from the increasingly

complex environment in which tax administrators, world wide

are placed. It is no longer simply a matter of raiding a taxpayers

premises, getting hold of a ‘duplicate’ set of accounts, putting

9
them to scrutiny and finalizing the assessment of Income of a

taxpayer. Many tax evaders today are represented by top flight

counsel a great number of whom are experts in their fields of

law, accounting, I.T., - what have you. The Balance Sheet gives

very little away by way of clues; books of accounts are

seemingly meticulously maintained especially in the case of

corporate taxpayers wherefrom much of the tax revenue

emanates.

Only an expertly trained taxperson can fathom and unravel the

intricacies inherent in the layers of complex arrangements that

are at the heart of tax evasion – from looking at the tax

evader’s computer’s hard disk for secrets cunningly embedded

in the magnetic media to the use of complex algorithms to

encrypt computer data to the use of code to scramble entries in

books of accounts.

Needless to say, only those armed with the expert knowledge

to deal with such extraordinary maneuvers can ever hope to

10
succeed in detecting and bringing to tax, systematically

concealed income.

And then, there is the underground economy. Vast sums of

money are made in the illegal segment of the parallel economy

– amounts never disclosed to the taxman. This is the

mysterious world of the smuggler, the counterfeiter, the drug

dealer. Believe me, nabbing them requires much more than

mere knowledge.

Not only are tax personnel required to be trained to detect tax

evasion, they are also required to be trained to interact

effectively with existing taxpayers many of whom don’t pay due

tax not because they are habitual tax evaders but because they

are so alienated by the negative mindset and attitude of tax

personnel, including their corruption, they find it more

convenient to ‘buy off ’ professional tax investigators rather

than be bothered by compliance with onerous tax laws.

11
So now a new kind of training is required- training that will not

only instill specific skills in tax personnel but also training that

will help change attitudes and mindset.

There is also a pressing need to broaden the mental horizon of

all functionaries in the service of government. Tax personnel

can no longer afford to have a narrow focus. They must

understand and appreciate matters other than those directly

connected with taxation. Today we live in a highly integrated

environment in which most things have some relationship with

each other. Thus almost anything can have some bearing on a

tax matter and unless we have the mental capability to

appreciate such nuances, we will find ourselves unable to

function optimally as tax personnel.

Furthermore, there is the recognition that as far as is feasible

and practical, training will have to be imparted to personnel

from both the direct and indirect tax jurisdictions from a

common platform. Where common training is a practical

12
proposition there is little point in having separate training simply

because the service labels are different.

So training today is ‘a whole new ball game’, as they say. And

to impart training skillfully you need a new breed of trainer. A

trainer who is not merely knowledgable but is also capable of

developing new approaches to imparting training. A trainer who

is ever willing to experiment; to be creative; to innovate. Above

all the trainer must be able to inspire his students to put in that

extra effort to rise to new heights of achievement. Thus the

trainer has to be a good role model over all.

At DOT we are developing a ‘multi-dimensional’ approach to

imparting training which will be explained in detail during the

conference proceedings. And CBR Audit Wing under the able

leadership of Member Audit – a professional accounts man-

has taken a very significant initative in imparting specialist

training at DOT in conducting audit of taxpayers Returns on

scientific lines.

13
DOT is in heavy debt to the highly professional CBR leadership

presently in place especially the Chairman CBR Mr M Abdullah

Yusuf, the Member (Human Resource Management) Mr

Muhammad Talha and the Member, Direct Taxes Mr Salman

Nabi for the able and inspired guidance and support provided to

DOT without which we would not be where we are today. We

also have to thank all CBR field formations,

all RTO’s, LTU’s & MTU’s, all Income Tax, Customs and Sales

Tax personnel wherever deployed for the willing cooperation

extended to DOT in the context of preparations for this

conference , especially the help extended by Mr Haji Ahmad,

DG RTO, Lahore who has gone out of his way in facilitating

DOT.

In the next few days of this Conference we hope to share our

collective knowledge and experience to try and develop new

approaches to imparting training more effectively. We are

aware that there are some amongst us who have already made

considerable headway in developing their training institutions

14
both with regard to physical infra structure as well the systems

and procedures necessary to train tax personnel effectively. We

hope to tap into this existing resource base and utilize it for the

mutual benefit of all. Finally we hope to evolve a broad

consensus on the major issues involved in training and the best

practices in training in the ATAIC group and in keeping with

our Islamic identity use this consensus to forge ahead in the

comity of nations.

I thank you for your patience and sincerely hope that our

friends from foreign lands will have a happy and useful stay at

DOT. I leave you now with a short quote from the eminent 19th

century English man of letters, John Ruskin:

“ Education does not (only) mean teaching people to know what

they don’t know; it (also) means teaching them to behave as

they don’t behave.”

Thank you!

15
ADDRESS BY Mr. SALMAN NABI, MEMBER (DT), CBR

In the name of Allah most beneficent and


merciful.

DISTINGUISHED DELEGATES OF ASSOCIATION


OF TAX AUTHORITIES OF ISLAMIC COUNTRIES,
DIRECTOR GENERALS, RTOs, DIRECTOR
GENERALS, LTUs, COLLECTORS, OFFICERS &
RESPECTED GUESTS!

Assalam-o-Alaikum!

It gives me great pleasure to welcome you all to


Pakistan as well as to this institution of Directorate
General of Training & Research [Direct Taxes] of
which we are proud of. It has not been very long that a
Conference of 3rd Technical Conference of ATAIC was
held in November 2006 in Islamabad, which was very
successful with regards to building consensus on the
problems and issues being faced by the tax authorities
in Islamic Countries. We discussed resource
mobilization in the region with a special reference to
improvement in tax to GDP ratio, tax base broadening,
voluntarily compliance and Shariah Taxation (Zakat). It
was agreed in the above Conference that considering
the shortfall in Govt. Finances in most countries and
the consequential recurring fiscal deficit, there was a
pressing need to significantly improve the tax to GDP
ratio. The Conference, I believe was a great success
and bore fruitful results during that very Conference. It
was also agreed that for resource mobilization, it is
extremely necessary that every country should have
well-trained human resource in the tax department. I
am today reminded of the first Technical Conference of
ATAIC held in Kuala Lumpur in 2004, where we had
suggested the holding of a conference of training
heads of member countries. Pakistan had offered to
host the conference so that we could share our
experience in this regard and sum up with
recommendations to generate a competent and
dedicated work-force which in turn will contribute in
resource mobilization. This offer was reiterated during
the proceedings of 2nd Technical Conference held in
Tehran (Iran) in 2005. I must compliment Mr. M. Munir
Qureshi, who Heads the Directorate General of
Training & Research who along-with his dedicated
team has worked hard to organize this Conference,
and Al-Hamdulilah we are sitting here together to
discuss and share our knowledge regarding training
and how to improve and modernize our training
facilities.

Ladies and Gentlemen!

Training of the work-force is a key element which


determines the efficiency level of tax administration. A
well-trained work-force is needed to reduce what is
called the “distortionary effect of tax burden” as the
economists call it. The following elements of training
have to be looked at in detail, to perceive the desired
results, i.e.,

(i) to define training needs, i.e. training needs


analysis;
(ii) to design training modules;
(iii) to develop training event, its arrangement
and infrastructure to deliver training, i.e.,
methodology and resource persons; and
(iv) to evaluate both the trainees and the
trainers.

The training being imparted in the Directorate of


Training, Lahore conforms to the above target areas of
improvement.

Al-Hamdulillah, necessary infrastructure and the


resources are available at this Directorate along with
excellent faculty enabling us to train new entrants to
the service as well as to organize Capacity Building
Programs of in-service officers successfully. It is hoped
that the sharing of training methodologies amongst
member countries will pave the way for future
cooperation in the form of joint trainings programs
resulting in excellence in training.

It is the need of hour to develop and to train tax


managers with a view to augment resource
mobilization in form of increased tax revenues of our
Governments. Almost all member countries are faced
with fiscal deficits and it is imperative to improve tax
collection efforts for attaining self-reliance and
economic development. Most of our member Islamic
countries are rich in resources yet the dream of
national prosperity and economic development eludes
many of us. All important national economic indicators
point to the need for consolidated efforts for economic
development. Side by side with structural tax reforms
needed for growth in the economy, development of
quality training institutes is also essential. No reforms
initiative can ever succeed without the backing of well
trained human resource. Well thought out and planned
joint training programs will serve the common goals of
skilled and fully trained work-force.

In line with cooperation in the field of tax management


and training, an ATAIC workshop on Revenue
Forecasting was successfully organized in the year
2005 in this Directorate. This twelve day workshop
focused on scientific and analytical means of
forecasting public revenues of the government. In most
underdeveloped countries, future planning often fall
victim to wrong estimates of facts and figures. Rather
than the traditional method of revenue forecasting
based upon percentage increase/decrease with
reference to current year’s performance, this method
relies on scientific approach to forecasting future
revenue streams. The resource person for this
conference was a Canadian consultant who followed
the micro simulation technique. This conference was
extremely beneficial in assisting the participant
countries in following a scientific approach in the
planning of future economic strategies.

Hence workshops and seminars on common issues in


the field of tax administration and training need to be
regularly organized for mutual benefit of all
participants. In this age of globalization, it is not very
hard to imagine future trainings being conducted on
issues such as forensic accounting and auditing
necessary to detect corporate frauds. I am very
pleased to inform you that Pakistan has made an offer
to the United Nation Organization also to host a
training program in collaboration with them. We are
also in touch with Commonwealth Association of Tax
Administration. It is hoped that the Director General,
once he is over with the current event, will take up the
challenge to bring this training institute on the global
map by organizing a training program under the
umbrella of United Nations.

Ladies and Gentlemen!

In Pakistan large scale administrative reforms in


Central Board of Revenue are underway and one of
the basic requirements of these reforms strategies is to
impart quality training to the new entrants to the
service as well as to the in-service officers. As part of
these reforms, the new entrants to the service after
completing necessary training at this Directorate are
sent to Institute of Banking Administration Karachi, a
leading business studies institution in Pakistan, for
completion of their one year MBA degree in taxation.
An important component of these reforms is the new
Income Tax Ordinance, 2001, under which
functionalization of our Direct Taxes has been
undertaken. To synchronize the new functions of the
tax officials with the Income Tax Ordinance, 2001,
training on functional lines is being organized with the
help of Professional Chartered Accountant Firms. Two
independent sessions of integrated audit training
modules have so far taken place in February & March,
2007. These sessions were a joint collaboration
between a Chartered Account firm and our Audit Wing.
The Directorate of Training fully participated in these
training programs in designing the course outlay as
well as in providing infrastructural support. This
Directorate is therefore, a leading tax training institute
having the necessary infrastructure and competent
faculty to offer training on above lines to member
Islamic Countries. In addition, Lahore is a seat of
learning with many eminent world class colleges and
universities. Recognizing the potential of this
Directorate as a regional training hub, the Central
Board of Revenue has principally agreed to offer
enhanced compensation packages for outsourcing
quality resource persons. As a result of this initiative,
DOT is now in a position to offer advanced training
courses backed by competent outsourced faculty. The
integrated audit training sessions are an example of
this initiative. In future, it is hoped that the pace of
cooperation between the member countries in the field
of technical training will gain further momentum. I invite
the member countries to take advantage of this
conference and strengthen the bond further by forging
cooperation in the field of joint trainings and seminars.
There is an urgent need to recognize the need for
revamping and improving the skills and knowledge of
tax officials and what better way than through sharing
of the tax training between the member countries.