| Citation(s) |
|---|
| 2026 SLG 207 = 2026 SLD 207 |
ITA No.1362/LB/2025 (Tax Year 2023)
Presented By: (RAO MUHAMMAD NASIR JAMIL) Member (IMRAN MUNIR) Member
Appellant by : Mr. Faisal Rasheed Ghauri, Advocate.
Respondent by : Mr. Ahmad Mujtaba, D.R. Date of hearing: 24.09.2025 Date of order : 09.10.2025
Mst. Ayesha Amir Fazal, Lahore. ….Appellant NTN : 3630273031046
VERSUS
The CIR, Zone-III, RTO, Lahore. ….Respondent
Law: Finance Act, 2022
Section: 8, 8(6) & 8(7)
Law: Foreign Assets (Declaration and Repatriation) Act, 2018
Section: 8(2)
Law: Income Tax Ordinance, 2001
Section: 120, 116(1A) & 116(2)
Law: Constitution of Pakistan, 1973
Section:
Summary
The Appellate Tribunal Inland Revenue dismissed the taxpayer’s appeal and upheld the levy of Capital Value Tax (CVT) under Section 8 of the Finance Act, 2022 on foreign assets exceeding Rs. 100 million, even where such assets had previously been declared under the Foreign Assets (Declaration and Repatriation) Act, 2018 (FADRA).
The Tribunal held that:
- CVT, 2022 is a distinct, independent, and permanent fiscal levy, unconnected with FADRA.
- FADRA was a sunset amnesty legislation operative only from 10 April 2018 to 30 June 2018 and did not grant perpetual immunity from future taxation.
- Section 8(2) of FADRA (immunity clause) applies only to laws in force during its subsistence and does not extend to subsequent legislation like CVT, 2022.
- The principle of generalia specialibus non derogant does not apply because FADRA had expired; instead, the principle of lex posterior derogat priori (later law prevails) applies.
- High Court judgments upholding CVT’s constitutionality reinforce its enforceability.
Accordingly, foreign assets declared under FADRA remain liable to CVT, 2022.