Tax Magazine

The Hon'ble Court ruled that the tax department's treatment of sugar sales as concealment without considering the cost of sales was misdirected. The taxpayer, Mehboob Hussain, received sugar instead of cash for sugarcane supplied to a mill. The case has been remanded to the AO for a fresh decision, per 2023 SCMR 534.

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The tribunal found significant shortcomings in the ACIR’s assessment, both in terms of factual scrutiny and legal interpretation. The ACIR's failure to adequately examine the provided evidence and its narrow understanding of section 8 led to an unjust disallowance of input tax. The tribunal underscored the broader interpretation of 'related to taxable supplies,' emphasizing that the department holds the burden of disproving the taxpayer's claims with substantial evidence. Given the insufficient reasoning and lack of material evidence in the ACIR’s order, the tribunal overturned the decision, affirming the appellant’s right to input tax adjustment.

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A brief update on a judgment by the High Court of Sindh on “Commissioner Cannot Reject a Lower Estimate of Payment of Advance Tax” is being shared with you for your knowledge.

The order has been attached herewith the update. This update is in line with the efforts undertaken by KBTA “CASE LAW UPDATE COMMITTEE” to apprise our Bar members with important court decisions.

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The FBR's 2019 circular outlines that foreign remittances over Rs 5M need to be explainable to avoid additional taxes. It details compliance measures for offshore assets, including penalties and prosecution for evasion. The Finance Act, 2019 also empowers FBR to freeze domestic assets of evaders.

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The appellate tribunal case, STA No. 251/MB/2024, involves appellant challenging the suspension of their Sales Tax Registration by the Commissioner Inland Revenue (CIR), Multan Zone. The appellant's primary contention, represented by advocates Muhammad Imran Ghazi and Muhammad Naseer-ud-Deen Hamayoun, is that the CIR Multan Zone lacked jurisdiction over them, as their jurisdiction falls under the CIR Dera Ghazi Khan Zone, according to the Jurisdictional Notification dated 09.01.2024.

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LAHORE: District Accounts Offices (DAOs) have informed the Federal Tax Ombudsman (FTO) that the FBR field formations have never issued any guidelines or instructions regarding the adjustment of taxes withheld from salaried individuals

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As per a delivery from the IMF, a staff-level understanding has been reached with Pakistan for a 37-month Expanded Asset Office Game plan (EFF) of about USD 7 billion. With the EFF, Pakistan has consented to changes to expand its duty base and eliminate special cases

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