Law: Income Tax Ordinance, 1979

Section: 12,50

Law: Federal Tax Ombudsman Ordinance, 2000

Section: 9

Income Tax Ordinance (XXXI of 1979)----Ss. 12(1) & 50---Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000), S.9---C.B.R. Circular No.1(41)IT-J/94, dated 28-11-1994---Income deemed to accrue and arise in Pakistan---Salary income--Deduction of Tax from salaries of employees of National Fertilizer Marketing Ltd, working in Gilgit as their pay and allowances were prepared and issued from Head Office at Lahore---Complainant contended that there was no legal or moral sanctity for imposition of any tax in the Northern Area territory as all private institutions working in such areas have been exempted from paying income tax on their salaries ---Validity-­Contentions of the Department were based on the assertion that salaries paid by National Fertilizer Marketing Ltd., a State enterprise, were covered by the provisions of S.12(1) of the Income Tax Ordinance, 1979 and thug even if the Income Tax Ordinance, 1979 was not applicable to the Northern Areas, salaries paid by the State enterprise would be taxable in view of the S.12(1) of the Income Tax Ordinance, 1979---In the absence of the complaints the employer's view that payment of salaries by National Fertilizer Marketing Ltd, amounts to payment by the Government had remained uncontroverted---No adequate reason had been found for intervention---Complaint was dismissed by the Federal Tax Ombudsman. FINDINGS/DECISION This is a complaint by two residents of Northern Areas regarding deduction of income tax at source from their salaries. The main points in the complaint are as follows: (i) The complainants are bona fide residents of Northern Areas, Gilgit and are employees of National Fertilizer Marketing Ltd. Headquarter, Lahore presently working at the Regional Office, Northern Areas, Gilgit. (ii) The Northern Areas are not constitutionally a part of Pakistan and are hence outside the ambit of the Constitutions of both Pakistan and Azad Jammu and Kashmir. (iii) The Northern Areas have been exempted from income tax and other taxes by the Government of Pakistan and the Wafaqi Mohtasib in an order passed on 16-6-1992 has also held that there is no legal or moral sanctity for imposition of any tax in…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492