Law: Finance Act, 1997

Section: 12

Law: Constitution of Pakistan, 1973

Section: FourthSched

(a) Finance Act (XII of 1997)-- ----S. 12---Corporate Assets Tax---One time tax---Salient features of levy of Corporate Assets Tax stated. Section 12 of the Finance Act, 1997 has levied corporate assets tax. From its perusal, it will be seen that salient features of levy which become apparent are that it imposes one time tax on the value of the assets held by a Company. The words "value of assets" have been defined in section 12(12)(d) of the Finance Act, 1991, as the value of fixed assets held by the company and shown in its balance-sheet as on the specified date. "Specified date" means, the last date on which the accounts of the company are closed which fell between the period 30-6-1991 and 30-6-1992. The tax is leviable only on such companies which hold the assets of the value of Rs.50 million or more. The rate of tax is at a sliding scale and depends upon the valuation of the assets. The Central Board of Revenue has been authorised to frame rules under this section. The companies falling within the ambit of this section have to file return on the prescribed form accompanied by audited and certified balance-sheets within 6 months of the specified date. The tax has to be paid at the time of filing of the return. In case of failure to pay tax, penalty Can be levied at the rate of Rs.1,000 for every day during which the default occurred. If, however, the tax is paid less than the tax payable under this section, the company is required to pay additional tax at the rate of 24 % per annum on the amount not paid. It is further provided that provisions of sections 23, 24, 25 and 35 of the Wealth Tax Act, 1963 shall apply to the calculation of tax 'and to the appeal or revision against the orders passed under this section. Tax can be levied on sliding scale. Messrs Elahi Cotton Mills (Pvt.) Ltd. v. Federation of Pakistan and others 1997 SCMR 582 ref. (b) Constitution of Pakistan (1973)----Fourth Sched., Federal Legislative List, Part I, Item No.50---Finance Act (XII of 1997), S.12---Corporate Assets Tax---"Capital value of assets" occurring in Fourth Sched., Federal Legislative List, Part I, Item No.50 of the Constitution means the whole value of assets and as to by…

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