| Citation(s) |
|---|
| 2026 SLG 210 = 2026 SLD 210 |
ITA No.5844/LB/2024 (Tax Year 2023)
Presented By: (RAO MUHAMMAD NASIR JAMIL) Member (IMRAN MUNIR) Member
Appellant by : Mr. Khurram Shahzad, Advocate
Respondent by : Mr. Najam-ul-Hassan, D.R. Date of hearing : 16.09.2025 Date of order : 14.10.2025
Mr. Shahzad Ali Khan, Lahore ….Appellant Reg No. 3520228123427
VERSUS
The CIR, AEOI Zone, LTU, Lahore. ….Respondent
Law: Finance Act, 2022
Section: 8(1), 8(2)(b), 8(3)(c), 8(4)(g), 8(7), 8(13)(f)
Law: Foreign Assets (Declaration and Repatriation) Act, 2018
Section: 8(2)
Law: Income Tax Ordinance, 2001
Section: 82, 116 & 116A
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, notwithstanding that 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, separate from FADRA.
- FADRA was a time-bound (sunset) amnesty scheme operative only between 10 April 2018 and 30 June 2018.
- Declaration of assets under FADRA does not grant perpetual immunity from future taxation.
- Section 8(2) of FADRA (“any law for the time being in force”) applies only to laws existing during FADRA’s subsistence and does not extend to future enactments like CVT, 2022.
- The principle of lex posterior derogat priori (later law prevails) applies, not generalia specialibus non derogant.
- High Court judgments upholding the constitutionality of CVT confirm its enforceability.
Accordingly, assets declared under FADRA remain liable to CVT, 2022, if they fall within statutory thresholds.