Karachi, February 21, 2019 (PPI-OT): Things had changed drastically since Pakistan became signatory of OECD in Sept 2016. Taxation of Residents and even so that of Non Residents has gained great significance. Therefore Income Tax Ord. 2001 was accordingly amended to accommodate international regulatory requirements which will definitely help Pakistan to control offshore tax avoidance and evasion. These were the key remarks delivered by Mr. Vishnu Raja Qavi, Sr Tax Consultant and Former Chief Tax Policy FBR at a seminar held by Karachi Tax Bar Association on Thursday at Auditorium Regional Tax Office Karachi.
The speaker stressed that Section 116A was purposely added to Income Tax Ord 2001 to maintain profiling of foreign assets of resident persons and pointed out that non residents are not likely to get benefit of Non Recognition Rules (Sec.79 of ITO 2001). He informed that Pakistan and India are the only two countries in Asia to achieve certification for AEOI under the multilateral convention. He hastened to add that this otherwise is a huge responsibility so that data-sharing is not compromised in any way.
He however stressed that that Avoidance of Double Treaty Agreements signed by Pakistan with different countries have to be taken into account on case to case basis. Mr Qavi suggested that multiple field formations inside FBR like BTB, I and I etc. should be abolished to single jurisdiction for the sake of facilitation. Finally he underscored that consequent to 25th Constitutional Amendment FATA and PATA will yield to Income Tax Ord. 2001 from 2026. The speaker candidly answered the queries posed during Q and A session. Prominent who featured in the event from FBR were the Chief Commissioners Mr. Shafqat Kehar, Mr. Badaruddin Qureshi alongwith Commissioners Mr. Maqsood Jehangir and Mr. Syedain Raza Zaidi.
For more information, contact:
Karachi Tax Bar Association (KTBA)
Bar Chambers, New Income Tax Building,
Shahra-e-Kamal Ataturk, Karachi
Tel: +92-21-99211792
Email: itbarkhi@cyber.net.pk
Website: www.karachitaxbar.com