Past Earning (Tax / without Tax) Imp. Query

[ahsanrz]

Dear All,

Well i am about to make application for HSMP from Pakistan. but before that i got some really important queries to make regarding my previous earnings and their breakdown. I need immediate help to resolve this complicated issue, so i turned my direction towards you all to help me out through your experiences.

First i will start with my brief description of earnings and then i will post my queries related to it.

Background Summary

1) I have been working for a International Telecom Consultancy firm from Oct 2005. This firm is UK based but operates mostly from Middle East region for my country.

2) Usually this firm hires you on Contract basis, usually 1 year but its renewable.

3) This firm dont hires you directly with its HR, it has outsource its contract employees hiring and all their salary paying to a third party company based in Cyprus.

4) So, when i got my agreement its between me and the third party but i worked on project that runned by Consultancy firm.

5) I got my salary payment each month though bank transfer into my FC account and it was in dollars without any tax deduction because the third party is based in cyprus and i guess there is not tax deduction for it.#

6) I just got 12 months electronic salary slips by third party that the have made payment in my account.

Now comes the complicated situation.

7) On Dec 2006, the International Firm for whom i was working decided to open its reginal country office in Pakistand and offered us permanent role in their firm, a permanent employee position.

8)So, from 1st Jan 2007, all previous third party contract was cancelled and the firm directly hired us and gave us hiring letter and all the salary details, and facitilites.

9) They converted our previous pay in pak currency and opened accounts for us in local bank, so we can get money in local currency.

10) So, its almost 10 months since i am working as permanent employee of the firm, they send monthly pay slips to us, signed and stamped seal.

11) They got their company registered, they pay tax and so do i.

12) I have payed the tax for this year period till july 2007 and i got my tax returns as well.

My Queries

1) My first query is that even though my monthly salary is enough from Jan 2007 to Oct 2007, to qualify for points, but should i wait till december to complete 12 month period or not ?.

2) Secondly how can i include my salary from contrac work and how do i show them that i worked as contracter, but i my salary was tax free. If i do that i will be able to claim more points on my salary range.

3) As my permanent role, i have paid tax till july 2007 but i m showing and claiming my eraning till October 2007, does it necessary that both earning period and tax return should be 12 months period.

I hope this went too long, but i am sorry i did tried to make it brief.
I would be highly thankful to you all, if someone went through same situation, can help me out, do let me know whts the documents i need to show if i want to claims both of my past earning.

Waiting for your replies.

Thanks in advance !

Regards

Ahsan Zaidi

[VictoriaS]

You were physically in Pakistan, but paid via a third party company based in Cyprus, and you were paid in dollars.

As Cyprus is not a tax free country, I am not 100 per cent sure that this arrangement was legal. However, assuming for amoment that it is, do you have pay slips for this period which accounts for all payments? Can you get bank statements from the Cypriot account which shows the monthly payment? Can you get a letter from the Pakistan employer confirming the arrangements, and can you get a letter from the third party company confirming why there was no tax paid?

Victoria

[ahsanrz]

You were physically in Pakistan, but paid via a third party company based in Cyprus, and you were paid in dollars.

As Cyprus is not a tax free country, I am not 100 per cent sure that this arrangement was legal. However, assuming for amoment that it is, do you have pay slips for this period which accounts for all payments? Can you get bank statements from the Cypriot account which shows the monthly payment? Can you get a letter from the Pakistan employer confirming the arrangements, and can you get a letter from the third party company confirming why there was no tax paid?

Victoria

Hello Victoria,

Thanks for the reply.

Well i was in pakistan at the time of my contract and i get payment in my Pakistani Bank Foreign Currency Account not in cyprus bank account. There is no contact or any involvement of cypriot banks, as only the third party is registered in cyprus. Well i will definitely contact the third party about the tax paid. i dont know why there was no tax paid, as i always get the whole amount credited into my Pakistani Bank as it was on contract signing.

Please help me more if you have any other suggestions