| Citation(s) |
|---|
| 2023 SLG 1398 2023 SLD 1398 2023 SCMR 1011 (2023) 128 TAX 291 |
Supreme Court of Pakistan
Civil Review Petitions Nos. 432-K to 459-K of 2022 in CivilPetitions Nos. 672-K to 692-K of 2021 and 694-K, 724-K to729-K of 2021, decided on 9th February, 2023. Date ofhearing: 9th February, 2023. (Review against the order ofthis Court dated 23.05.20
Present: Muhammad Ali Mazhar and Syed Hasan Azhar Rizvi, JJ
Dr. Shah Nawaz, Advocate Supreme Court and Irfan Mir Halepota, Advocate Supreme Court for Petitioners. Syed Mehmood Abbas, Advocate-on-Record for
Respondent No. 1 (in C.R.Ps. Nos. 432-K, 434-K, 435-K, 438-K, 440-K, 444-K, 447-K, 448-K, 452-K and 453-K).
Civil Review Petitions Nos. 432-K to 459-K of 2022 in CivilPetitions Nos. 672-K to 692-K of 2021 and 694-K, 724-K to729-K of 2021, decided on 9th February, 2023. Date ofhearing: 9th February, 2023. (Review against the order ofthis Court dated 23.05.20
Present: Muhammad Ali Mazhar and Syed Hasan Azhar Rizvi, JJ
Dr. Shah Nawaz, Advocate Supreme Court and Irfan Mir Halepota, Advocate Supreme Court for Petitioners. Syed Mehmood Abbas, Advocate-on-Record for
Respondent No. 1 (in C.R.Ps. Nos. 432-K, 434-K, 435-K, 438-K, 440-K, 444-K, 447-K, 448-K, 452-K and 453-K).
COMMISSIONER INLAND REVENUE Z-III, CORPORATE REGIONAL TAX OFFICE, TAX HOUSE, KARACHI and another---Petitioners
VS
Messrs MSC SWITZERLAND GENEVA and others---Respondents
Law: Income Tax Ordinance, 2001
Section: 4B,44(1),107,107(1),109
Law: Constitution of Pakistan, 1973
Section: 185(3),188
(a) Income Tax Ordinance (XLIX of 2001)----S. 107--- Treaties for the avoidance of double taxation, interpretation of---Such treaties have to be given preference and would prevail over the provisions of income tax law. Commissioner Inland Revenue (Legal Division), LTU, Islamabad v. Messrs Geofizyka Krakow Pakistan Ltd. 2017 SCMR 140 ref. (b) Income Tax Ordinance (XLIX of 2001)-----S. 107--- Avoidance of Double Taxation Treaties (DTT(s)), interpretation of---When any definite and unambiguous stipulation is assimilated in the Double Taxation Avoidance treaty or Agreement, said provision will obviously supplant and supersede the general provisions encompassed under Tax Laws---However, the fact remains that the foremost purposefulness of a DTT is required to be explored in the background of ministering commercial relations between treaty partners and as being essentially a bargain between the two signatories thereof as to the division of tax revenues between them in respect of income falling to be taxed in both jurisdictions. (c) Income Tax Ordinance (XLIX of 2001)--- ----Ss. 4B, 44(1), 107(1) & 109---Constitution of Pakistan, Art. 188---Review petition---Non-resident companies---Super tax, imposition of---Double Taxation Treaties---Convention between the Islamic Republic of Pakistan and the Swiss Confederation for the Avoidance of Double Taxation with respect to Taxes on Income ("Swiss DTT"), Art. 2---Held, that High Court considered the pros and cons of the entire controversy and the questions of law raised and thereafter reached to the analytical conclusion that the levy of Super Tax was identical to the levies that existed at the time the treaties in question came into force, hence the tax-payers within the realm of double taxation treaties are either exempt or, wherever applicable, liable to pay the Super Tax at reduced rates in terms of their respective treaties---No justification or rationale existed to entertain and consider the present review petitions when the High Court had extensively considered all the questions raised before it and comprehensibly discussed the pros and cons and passed a reasonable consolidated judgment which did not warrant any…
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