Request for Proposal (RFP) For Appointment of Tax Consultancy Firm INFRASTRUCTURE DEVELOPMENT AUTHORITY PUNJAB (IDAP) GOVERNMENT OF PUNJAB Ground Floor 7-C-1, Gulberg-III, Lahore Page 1 of 12
Table of Contents 1. INVITATION FOR PROPOSAL... 3 2. INSTRUCTIONS TO APPLICANTS... 3 3. TERMS OF REFERENCE... 5 4. EVALUATION CRITERIA... 7 5. TECHNICAL AND FINANCIAL EVALUATION PARAMETERS... 7 6. TERMS & CONDITIONS... 9 7. APPLICATION FOR APPOINTMENT OF AUDITORS (ANNEXURE-A)... 12 Page 2 of 12
1. INVITATION FOR PROPOSAL Infrastructure Development Authority of the Punjab (IDAP) has been established by the Government of Punjab under the Infrastructure Development Authority of the Punjab Act, 2016 (Act IV of 2016) for planning, designing, construction and maintenance of infrastructure in Punjab in line with the best international practices to cope with the futuristic development needs. The purpose of the IDAP is to get the infrastructure development projects executed efficiently, aesthetically, and transparently without compromising quality or entailing delays. IDAP possesses complete project management services including feasibility, design, contract management, execution, supervision and delivery to the client department. The Authority intends to appoint a reputable tax consultancy firm to provide tax consultancy services in accordance with tax laws of Pakistan i.e. Income Tax Ordinance 2001, Sales Tax Act 1990, Punjab Sales Tax on Services Act 2012 and other applicable laws and regulations. This consultancy opportunity is advertised for interested consultancy firms to assist IDAP in tax planning and compliance with the relevant tax laws. Interested parties are invited to submit their proposals in respect of tax consultancy after obtaining and understanding the relevant information for assignment purposes. Submission and Opening of Proposals: 2. INSTRUCTIONS TO APPLICANTS All proposals must be delivered to the office of the Chief Financial Officer on or before 03:00 pm on August 15, 2016. If the day of submission/opening of the bids is declared as a holiday, the bids will be opened on the next working day at the same time. The Authority will use Quality and Cost Based Selection method under single stage two envelope method for selection of the consultancy firm under Punjab Procurement Rules, 2014 (www.ppra.punjab.gov.pk). Technical proposals will be publicly opened at 03:45 pm on August 15, 2016 in the conference room of Infrastructure Development Authority Punjab, ground floor, 7-C/1, Gulberg III, Lahore, Pakistan. Proposals received after the due time will not be accepted and returned to the bidders unopened. For opening of financial proposals the date, time and venue will be communicated separately. The proposals are to be prepared in English. The applicants must provide complete information along with supporting documents. Any lapse to provide essential information shall render the applicant nonresponsive. The technical and financials proposals are to be submitted in two separate and sealed envelopes, clearly marked as such, either by hand or courier, in one sealed outer envelope clearly marked Proposal for Appointment of Tax Consultancy Firm to the following address: Chief Financial Officer (CFO) Infrastructure Development Authority Punjab (IDAP) Ground Floor, 7-C/1, Gulberg III, Lahore, Pakistan Ph: (042)-99268324 Page 3 of 12
Queries and Clarification of Bid: Queries of the applicants for seeking clarifications must be received in writing or through e-mail to IDAP within 10 days of publication of advertisement for procurement. Contact details for all correspondence in relation to this proposal are as follows: Mr. Muhammad Salman Iqbal Chief Financial Officer, IDAP Email: cfo@idap.pk Ph: (042)-99268328 Mob: 0300-9483393 Mr. Omar Lashari Manager Finance, IDAP Email: omar.lashari@idap.pk Ph: (042)-99268324 Mob: 0321-4400077 Applicants are also required to state in their proposals the name, title, phone numbers, fax numbers and e-mail of their authorized representative through whom all communications shall be directed until the process has completed or terminated. IDAP may reject all proposals at any time prior to the acceptance of a proposal under Rule 35 of the Punjab Procurement Rules, 2014. Disclaimer: The RFP for appointment of tax consultancy firm contains brief information about the services required and provides the applicants information to assist in the formulation of their proposals. While all efforts have been made to ensure the accuracy of information contained in this document, it may not contain all the information required by the applicants. The applicants should conduct their own independent assessment, investigations and analysis and may prepare their proposals in the light of relevant experience and best practices. IDAP, or any of its employees or advisors/consultants, shall incur no liability under any law, statute, rules or regulations as to the accuracy or completeness of this document. IDAP reserves the right to change any or all conditions/information set in this document by way of amendment, revision, deletion, updating or annulment through issuance of appropriate corrigendum as IDAP may deem fit in accordance with Punjab Procurement Rules, 2014. IDAP shall not be responsible for any costs or expenses incurred by interested firms in connection with the preparation or delivery of the proposals. Page 4 of 12
3. TERMS OF REFERENCE The duration of the contract is for a period of one year. The Authority reserves the right to review the contract at the end of the term and may choose to extend it for a further period. If the Authority chooses to cancel the contract during the course of the year, a notice period of one month will apply. The tax consultancy firm will assist the Authority in tax planning and ensuring compliance under the relevant tax laws. The scope of work includes the below mentioned services. If any additional service is regarded as imperative by the tax consultancy firm, the same shall be offered and clearly defined. REGISTRATION 1. Registration with Income tax authorities. 2. Registration with Sales tax authorities. ADVISORY & TAX PLANNING 3. Taxation advisory with respect to various procurements and different construction projects being executed by IDAP. 4. Advise on routine tax compliance (withholding taxes on various agreements, contracts, transactions etc.) including generation of payments challans and other documents under Income Tax Ordinance and Sales Tax Acts (Federal and Provincial). 5. Points 3 & 4 above would include interpretation of law and impact on the Authority and its transactions in light of the same. 6. Obtain exemption certificates, where applicable, from Commissioner Inland Revenue / Federal Board of Revenue and Punjab Revenue Authority. 7. Advise on applicability of other Federal and Provincial tax laws such as Federal Excise Duty, customs duty etc. 8. Advise on social security and EOBI matters. COMPLIANCE 9. To advise IDAP in maintaining relevant tax records including reviewing and ensuring their accuracy. This would include review of tax computations, as required by the Authority before filing, and making adjustments, where applicable. 10. Preparation and filing of withholding statements under the Income Tax Ordinance and relevant Sales Tax Acts (if required). 11. Preparation and filing of tax returns under the Income Tax Ordinance and Sales Tax Acts (if required). 12. Compliance with notices received from tax authorities including preparation and presentation of replies to these notices. 13. Ensure timely availability of engagement partner for guidance/opinion on the basis of Authority s requirements and whenever there is any change in the applicable taxation laws. Page 5 of 12
APPEALS AND PROCEDURES 14. Preparation of appeal and presentation before Commissioner appeals under the Income Tax and Sales Tax Acts, where required. 15. Preparation of appeal and presentation before Appellate Tribunal under the Income Tax and Sales Tax Acts, where required. 16. Preparation and filing of Stay application before relevant appellate forums under the Income Tax Ordinance and Sales Tax Acts or other relevant laws and regulations and getting the stay order, where required. 17. Preparation and filing of rectification application under the Income Tax Ordinance, Sales Tax Acts and other relevant laws and regulations, where required. AUDIT 18. Assisting in resolving/complying with tax audit matters under the Income Tax Ordinance and Sales Tax Acts. OTHER 19. Advise on applicability of and compliance with tax provisions under any relevant tax law prevailing in Pakistan. 20. Any other matters relating to taxation as required by the Authority. The tax consultancy firm shall ensure that all services conform to the standards for professional services. All the advice and opinions on specific matters will be required in writing on the firm s letterhead and/or official email, where applicable. Representatives of tax consultancy firm may have to work at IDAP premises when required. 4. DELIVERABLES Deliverables of the tax consultancy firm will be determined in accordance with the terms of reference defined in Section-3 of the RFP document. These would include: Routine/General Deliverables: 1. Registration certificate issued by tax authorities 2. Tax advisory in respect of IDAP s taxation including taxability of its revenue/profits, exemption available, withholding tax mechanism to be followed and compliance with all the taxation laws in Pakistan. Opinion in respect of the foregoing would be required in writing. 3. Tax advisory in respect of each project executed by IDAP for client organization. Opinion of the firm would be required in writing on taxability of these projects under all applicable tax laws in Pakistan. This would include a holistic view of applicable taxes on the project, exemption available, withholding tax mechanism and compliance with all the taxation laws in Pakistan. Page 6 of 12
4. Instructions to staff members of IDAP, in writing, for ensuring compliance with all the applicable taxation laws of Pakistan in relation to IDAP. 5. Preparation and filing of withholding statements under the relevant tax laws. 6. Preparation and filing of tax returns under the relevant tax laws. 7. Reply of valid notices from tax authorities, in writing, for IDAP. Conditional Deliverables: 1. Exemption certificates from tax authorities (FBR, PRA), where applicable. 2. Preparation and filing of appeals before appellate forums and getting favorable results for IDAP in form of order/judgements. 3. Stay order in favor of IDAP, where required. 4. Clarification and resolution of tax audit observations through an order of the relevant authority. 5. Rectification order in favor of IDAP, where required. 6. Any other deliverable, in writing, which is required to comply with terms of reference or any tax law applicable in Pakistan. 5. EVALUATION CRITERIA The Authority will use Quality and Cost Based Selection method under single stage two envelope method for selection of the tax consultancy firm under Punjab Procurement Rules, 2014. Details of the evaluation criteria for technical and financial evaluation are provided in Section-6. Scores will be allocated based on evidence available in the proposal only. The tax consultancy assignment will be awarded to the firm with the highest total score based on the following weight ratios: 75% for technical score 25% for financial score Note: Firms scoring less than 70% in technical evaluation will be considered non-responsive and financial proposals will be returned un-opened. i) Initial Screening: 6. TECHNICAL AND FINANCIAL EVALUATION PARAMETERS The following documents/ certificates are the pre-requisite and shall be used for initial screening. The applicant tax consultancy firm will go in the next stage if it fulfills all the requirements of initial screening which are as under: 1. Profile of the Firm. 2. Registration with Institute of Chartered Accountants of Pakistan (registration certificate of ICAP). 3. Lahore Tax Bar s membership certificate of the tax partner(s). 4. Valid NTN & PNTN number/certificate. 5. Partnership registration certificate (registrar of firms). 6. Audited annual financial statements of the firm for the last three financial years 7. Declaration on stamp paper that the firm has never been blacklisted by any Government Page 7 of 12
department/authority/agency/company. 8. Affidavit from the firm, to the effect, that all the documents, statements and information provided with the proposal are complete, true and correct in all aspects. Note: Verifiable documentary proof of all above requirements is mandatory; noncompliance will lead to disqualification. ii) Technical Evaluation: The firms cleared from initial screening will be evaluated as per following criteria: A. Number of tax partners in Total marks Range of partners Marks Pakistan At least 3 tax partners 20 03-04 05 05-06 10 07-08 15 09 & above 20 B. Number of tax department staff in Total marks Range of staff Marks Pakistan At least 15 staff members 15 15-20 06 21-25 09 26-30 12 31 & above 15 C. Govt. / Semi Govt. experience Total marks No. of organizations Marks Experience of providing tax 20 01-05 05 advisory/consultancy services to 06-10 10 Govt. / Semi Govt. organizations ) 11-15 15 in last 5-years 16 & above 20 D. Infrastructure/construction sector experience Experience of providing tax advisory/consultancy services to infrastructure/ construction related organizations in last 5- years Total marks No. of organizations Marks 20 01-05 05 06-10 10 11-15 15 16 & above 20 E. Financial strength Total marks Revenue Rs. Marks Average revenue for the last 3 10 up to 250m 04 financial years 251m-500m 07 501m & above 10 F. Years of tax experience of tax Total marks No. of years Marks engagement partner At least 10 years 15 10-15 05 16-20 10 21 & above 15 Page 8 of 12
The following documents would be required in respect of each technical evaluation criteria for scoring: A. CVs, ICAP registration certificate and Lahore Tax Bar membership certificate of tax partners. B. List of full time/regular staff members (other than partners) in tax department of the firm, including their CVs. C. List of Govt./Semi Govt. client organizations along with evidence of provision of tax services such as copy of contract or certificate from client. D. List of infrastructure/construction related client organizations along with evidence of provision of tax services such as copy of contract or certificate from client. E. Registration certificate with ICAP and audited financial statements for the last 3 financial years. F. CV of tax engagement partner along with ICAP registration certificate and Lahore Tax Bar membership certificate. The financial proposal of only those tax consultancy firms will be opened which secure a minimum score total score of 70% in the technical evaluation. Supporting documents in respect of each criteria must be submitted by the tax consultancy firm. iii) Financial Evaluation: The fee for providing tax consultancy for a period of one year must be inclusive of all costs, including out of pocket expenses, and all taxes applicable in Pakistan. The fee must be quoted in two parts i.e. (i) monthly retainership for routine/general deliverables and (ii) transaction specific fee for conditional deliverables. The formula for determining the financial score is the following: Sf = 100 x Fm / F Where, Sf is the financial score; Fm is the lowest price and F the price of the proposal under consideration. The weights given to the technical (T) and financial proposals (F) are: T = 0.75 and F = 0.25 The tax consultancy firm getting maximum marks on 75-25 weightage (75% for technical and 25% for financial) will be selected as the tax consultancy firm. 7. TERMS AND CONDITIONS The tax consultancy firm is expected to examine the RFP thoroughly, including all terms and conditions. The tax consultancy firm shall bear all costs / expenses associated with the preparation and submission of the proposal and IDAP shall in no case be responsible / liable for those costs / expenses. The prospective tax consultancy firms may solicit clarification as mentioned in the RFP in writing. Page 9 of 12
Tax Consultancy Fee The fee for providing tax consultancy for a period of one year must be inclusive of all costs and taxes applicable in Pakistan. Tax consultancy firms are requested to submit their best prices with their proposals. Quality Assurance The tax consultancy firm shall ensure that all services conform to the standards for professional services. Monitoring Progress of Assignments On completion of each tax/deliverable, the consultancy firm shall submit report to IDAP. Competency and Expertise Requirements Tax consultancy firms must be registered with Institute of Chartered Accountants of Pakistan (ICAP). Knowledge and experience of providing taxation services to a public sector entity will be an advantage. Independence and Objectivity of Staff In carrying out the work, the tax consultancy firm must ensure that its personnel maintain their objectivity. The tax consultancy firm shall have: (i) no executive or managerial powers, functions or duties except those relating to the provision of services (ii) not be involved in the day-to-day operations of the Authority. Validity of Proposal The proposal validity period shall be two (2) months from the last date for submission of the same. Invoicing and Payments IDAP will pay invoices within thirty (30) days from completion of services/deliverables as acknowledged by its authorized representative and issuance of valid invoices. Payment will be made through cross-cheque after deduction of all applicable taxes. Dispute Resolution In case of any difference or dispute arising between the parties relating to this proposal or contract, same shall be referred for resolution to the Chief Executive Officer of IDAP or his duly authorized nominee whose decision shall be final and binding on both the parties and shall not be challenged in any court of law. Fraud & Corruption IDAP requires that applicants under this process for appointment of tax consultancy firm, observe the highest standards of ethics during this process. In pursuit of this policy, IDAP defines for the purposes of this provision, the terms set forth below: i. corrupt practice means the offering, giving, receiving, or soliciting, directly or indirectly, of anything of value to influence the action of a public official in the prequalification process or in contract execution; ii. fraudulent practice means a misrepresentation or omission of facts in order to influence the prequalification; Page 10 of 12
iii. iv. collusive practice means a scheme or arrangement between two or more applicants, with or without the knowledge of the Employer, designed to establish artificial data/ information; and coercive practice means harming or threatening to harm, directly or indirectly, persons or their property to influence their participation in the prequalification process; IDAP will reject the proposal if it determines that the tax consultancy firm recommended for award has, directly or through an agent, engaged in corrupt, fraudulent, collusive or coercive practices.; and IDAP will sanction a firm or individual, including declaring them ineligible, either indefinitely or for a stated period of time for prequalification if it at any time determines that they have, directly or through an agent, engaged, in corrupt, fraudulent, collusive or coercive practices. No Conflict Applicant and all parties constituting the applicant shall not have a conflict of interest. Applicants shall be considered to have a conflict of interest if, i. such applicant and any other applicant have common controlling shareholders or other ownership interest; provided that this qualification shall not apply in cases where the direct or indirect shareholding in an applicant or a constituent thereof in the other applicant(s) is less than 1% of its paid up and subscribed capital; or ii. iii. iv. a constituent of such applicant is also a constituent of another applicant; or such applicant has a relationship with another applicant, directly or through common third parties, that puts them in a position to have access to each other s information about, or to influence the appointment of either or each of the other applicant; or such applicant has participated as a consultant to IDAP in the preparation of any documents. Confidentiality Information relating to the examination, clarification, evaluation and recommendation for the applicant shall not be disclosed to any person who is not officially concerned with the process or is not an advisor in relation to, or matters arising out of, or concerning this process. IDAP will treat all information, submitted as part of the proposal, in confidence and will require all those who have access to such material to treat the same in confidence. Page 11 of 12
Annexure A - Application for Appointment as Tax Consultancy Firm To: Mr. Mujahid Sherdil Chief Executive Officer Infrastructure Development Authority (IDAP) Ground Floor 7-C-1, Gulberg-III, Lahore. (Letter head paper of the Applicant including full postal address telephone no. and fax no.) Date: Dear Sir, 1. Being duly authorized to represent and act on behalf of (hereinafter referred to as the Applicant ), and having reviewed and fully understood all of the information provided in this RFP for appointment of tax consultancy firms, the undersigned hereby expresses its interest in and applies to be appointed by your organization for providing tax consultancy to Infrastructure Development Authority Punjab (IDAP). 2. Attached to this proposal/bid are copies of original documents specifying: a. Profile of the Firm. b. Name, title, phone numbers, fax number and email of authorized representative. c. Registration certificate of Institute of Chartered Accounts of Pakistan (ICAP). d. Lahore Tax Bar s membership certificate of the tax partner(s). e. Valid NTN & PNTN number. f. Partnership registration certificate with registrar of firms. g. Declaration on stamp paper that the firm has never been blacklisted by any Government department/authority/agency/company. h. Annual financial statements of the firm for the last three financial years. i. Other documents as required in the proposal for evaluation purposes. 3. The client and its authorized representatives are hereby authorized to conduct any inquiries or investigations to verify the statements, documents and information submitted in connection with this application, and to seek clarification from our bankers and clients regarding any financial and technical aspects. The letter of application will also serve as authorization to any individual or authorized representative of any institution referred to in the supporting information, to provide such information as deemed necessary and requested by the client or its authorized representative in order to verify statements and information provided in this application, or with regard to the resources, experience, and competence of the firm. 4. The undersigned declares that the statements made and the information provided in the proposal are complete, true and correct in all aspects. Signed: Name: For and on behalf of (Firms name) Page 12 of 12