RA Law Office

02/12/2021

*FBR issues new, revised tables of property valuation*

To fix fair market value of immoveable properties, the Federal Board of Revenue (FBR), Wednesday, revised upward the values of residential and commercial immovable properties located in 40 major cities across the country.

In this connection, the FBR has issued 40 notifications, here on Wednesday to raise values of properties from December 1, 2021.

The FBR has also placed the old (rescinded) notifications pertaining to the old values on its website for reference purposes.

The values of almost all residential and commercial immovable properties of Pakistan has been increased in an attempt to bring them at par with the fair market values.

From December 1, 2021, the FBR has revised values of residential/commercial properties on the basis of per marla of some cities.

Immovable properties: FBR decides to revise upward values

The values have been raised on the basis of size in square yards for other cities. The property area value has been determined on the basis of per marla basis for other cities.

The FBR has enhanced the market values of residential and commercial immovable properties located in Abbottabad; Attock; Bahawalnagar; Bahawalpur; Chakwal; Dera Ismail Khan; DG Khan; Faisalabad; Ghotki; Gujranwala; Gujrat; Gwadar; Hafizabad; Hyderabad; Islamabad; Jhang; Jhelum; Karachi; Kasur; Khushab; ;ahore; Larkana; Lasbala; Mandibahauddin; Mansehra; Mardan; Mirpurkhaas; Multan; Nankna; Narowal; Peshawar; Quetta; Rahim Yar Khan; Rawalpindi; Sahiwal; Sargodha; Sheikhupura; Sialkot; Sukkur, and Toba Tek Singh.

In exercise of the powers conferred by sub-section (4) of section 68 of the Income Tax Ordinance, 2001 and in supersession of its notifications, the FBR has determined the fair market value of immoveable properties.

07/10/2021

Federal Board of Revenue (FBR) has once again urged all the taxpayers, both old and new, to make the most of one-time extension of 15 days granted for filing of Income Tax Returns till 15th October, 2021. Therefore, they are advised to file their returns without delay as the given deadline is already fast approaching. It is further reiterated that the timely Filing of Income Tax Returns would also save them from the hassles of system issues which may occur due to extraordinary traffic at the portal on the last day.

However, FBR has enhanced the capacity of its IT System to ensure that the IRIS software is properly working, round the clock. FBR believes in facilitation of taxpayers and accords top priority to resolve their issues. The extension in date for filing of return till 15th October, 2021 was also aimed at alleviation of their hardships.

It is further reaffirmed that the extension given on September 30 was only due to the fact that FBR’s IT System got overloaded and since that has been fixed now, no more extension will be allowed beyond October 15, 2021.

10/09/2021

No extension in Returns filing date after 30th September, 2021 - FBR

Improvement of tax compliance culture is prime objective of the government and Federal Board of Revenue (FBR) is actively trying to achieve it with the cooperation of taxpayers. The decision of non-extension in due date for filing of return last year saw an overwhelming response from taxpayers.

In view of this the, Iris portal for filing of return this year was operationalized w.e.f 1st of July, 2021 in order to facilitate the compliant taxpayers.

FBR has advised all taxpayers required to file tax return by 30th September, 2021 to fulfill their legal obligation without waiting for the last date to avoid system delays which occur when a large number of taxpayers log-in for submission of returns near deadline. FBR has reiterated that there will be no extension in due date for filing of Income tax return.

16/06/2021

Pakistani brands have got protection from infringement in more than 100 countries under a new international protocol the county has signed, officials said on Friday.The officials informed...

Pakistani brands have got protection from infringement in more than 100 countries under a new international protocol the county has signed, officials said on Friday.

The officials informed a meeting that the country joined the Madrid system of trademark of World Intellectual Property Organization, which allows the brand owners to protect their trademarks in over 100 countries through a single and cost-effective procedure.

Adviser to the Prime Minister on Commerce and Investment Razak Dawood held the consultative meeting at the ministry of commerce to discuss matters relating to the intellectual property ecosystem of Pakistan.

The meeting was informed that President Arif Alvi signed the instrument of accession which paved the way to become the 108th country in the world to join the Madrid system.

Dawood lauded the efforts of the Intellectual Property Organization of Pakistan (IPO). “It is the policy of the government to help Pakistan’s brands to go global,” he said in a statement. “This is the best and the most sustainable way to increase exports. The ministry of commerce remains committed to supporting Pakistan’s brands and to strengthening of intellectual property ecosystem.”

The Madrid system registers and manages trademarks worldwide. Businesses can file a single application and pay one set of fees to apply for protection in up to 124 countries.

Permanent Representative of Pakistan to the United Nations in Geneva deposited the instrument of accession with the WIPO. With this development, the trademark holders of Pakistan would be able to protect their trademarks in more than 100 countries, by filing a single application at WIPO.

Similarly, the member countries of the protocol would also be able to get protection of their trademarks in Pakistan by using Madrid route. It would go a long way in ameliorating the business environment in Pakistan. It will also encourage foreign investment in the country.

Half of foreign investors are concerned about infringement of intellectual property rights in Pakistan, although the compliance with international standards showed an improvement somehow in the recent couple of years, according to a survey Overseas Investors Chamber of Commerce and Industry in 2019.

The singing of protocol is to complement the recent relaxation in regulations related to transfer of funds abroad for brand marketing and business setup.

The central bank earlier this month exempted local investors from taking the central bank’s permission for foreign investment except when they want to invest abroad for business expansion.

04/05/2021

The Sindh High Court (SHC) has struck down Section 5A of the Income Tax Ordinance 2001 by declaring it ultra vires to the Constitution. A division bench of the SHC comprising Justice Junaid Ghaffar and Justice Agha Faisal in a detailed judgment ruled that it has been established that Section 5A of the Ordinance amounts to legislation not contemplated in the Constitution to be undertaken vide a money bill.

The bench gave the verdict in the petitions of Sapphire Textile Mills Limited and others, which challenged Section 5A of the Income Tax Ordinance 2001 and sought for the same to be declared unconstitutional.

According to a written order of the bench, Section 5A was initially inserted in the Ordinance vide the Finance Act 2015 (“FA 2015”) and amended vide the Finance Act 2017 (“FA 2017”), ostensibly in order to induce certain (not all) public companies to distribute dividends among their shareholders.

The petitioners had inter alia contended that 5A amounted to impermissible double taxation on the same income.

The counsel for the respondents submitted that 5A did not amount to double taxation as it contemplated an independent levy.

It was argued that 5A identified a class to be taxed, hence, could not be considered discriminatory and concluded that the legislature had ample power to regulate economic behavior, and 5A was merely one specie of exercise of such power.

The deputy attorney-general unequivocally stated that the purpose of inserting 5A into the Ordinance was to incentivize the distribution of profits by companies and to keep companies compliant with the requirements of company law.

The bench observed that no rationale has been articulated before it to justify the regulation of companies’ behavior pertaining to dividends to be effected vide a money bill within the mandate of Article 73 of the Constitution, while abjuring the regular legislative process.

Therefore, the court declared that Section 5A of the Income Tax Ordinance 2001 cannot be sustained on the constitutional anvil; hence, could not be construed to have legal effect.

In view of the reasoning and rationale the court ruled that the petitions are allowed and declared that insertion of Section 5A in the Income Tax Ordinance 2001, including amendments thereto from time to time, does not fall within the parameters delineated per Article 73 of the Constitution of Pakistan, 1973. The court set aside any show-cause/demand notices or constituents seeking enforcement of Section 5A of the Income Tax Ordinance 2001.

31/12/2020

The return filers now require to submit “Taxpayer’s Profile”. These include particulars of bank accounts, utility connections, business premises including all manufacturing, storage or retail outlets etc.

Which Persons required to submit taxpayer’s profile ?
Under section 114A(1) of Income Tax Ordinance, 2001, a Taxpayer’s profile needs submission by the persons:
(a) every person applying for registration under section 181;
(b) every person deriving income chargeable to tax under the head, “Income from business”;
(c) every person whose income is subject to final taxation;
(d) any non-profit organization as defined in clause (36) of section 2;
(e) any trust or welfare institution; or
(f) any other person prescribed by the Board.

08/12/2020

06/12/2020

There will be no extension for filing of returns this time.

So don't waste your time,

Only 2days are left.

12/11/2020

The Federal Board of Revenue (FBR) issued a stern warning to non-filers of income tax returns that citizens of Pakistan now cannot hide their assets, income and expenditures from the FBR.

The FBR has further warned non-filers that the last date for filing of income tax returns was extended up to December 8, 2020, and they cannot hide their income, assets and expenditures from the FBR.

The FBR has informed all citizens that the FBR has information of all kinds of assets, income and expenditures of persons not filing their income tax returns, and now non-filers cannot hide their assets and income.

25/10/2020

P L D 2020 Supreme Court 508
Present: Mushir Alam and Qazi Faez Isa, JJ

S. 25---Contract Act, Ss. 23 & 25---Custody of minor.

Disabled mother with no substantial source of income---Hizanat, right of---Scope.

Agreement for khula' between husband and wife whereby the latter gave up custody of their minor son.

Repugnancy of such agreement to Inunctions of Islam.

Mother in whom right of hizanat vested could not be compelled to surrender it nor could such surrender constitute consideration for an agreement of khula'.

Holy Quran, which enabled khula', did not contemplate surrendering a child's custody to secure khula' nor that it could constitute valid consideration for it.

To insert such a condition in an agreement of khula' was contrary to the law, public policy, and the Injunctions of Islam.

Such a stipulation would be void under S.25 of the Contract Act, 1872 because it was without consideration.

Any agreement the object or consideration of which was against public policy was void, as stipulated in S.23 of the Contract Act, 1872.

Family Judge came to a legally and factually correct decision that the child's welfare lay in the mother having his physical custody; that the mother's disability was not a factor that could deprive her of custody; and even if the mother was financially incapable to provide for the child, it was not her responsibility to do so but that of the father to maintain the child.

Judgment of the Family Judge was upheld by the Appellate Court, however, the two concurrent judgments were set aside by the High Court by relying on the agreement between the husband and wife, and the clause therein stipulating that the mother could not claim the custody of her son.

High Court held that the mother's physical condition meant that she was not able to look after her child and further held that she was not financially independent.

All three said reasons which prevailed with the High Court were extraneous to the law and Shariah, pertaining to the personal law of Muslims.

Mother in whom hizanat vested could not be compelled to surrender it nor could such surrender constitute consideration for an agreement of khula. Custody of a child or rights to his/her custody could not be surrendered to obtain khula nor could the husband demand such surrender.

Holy Quran, which enabled khula, did not contemplate surrendering a child's custody to secure khula nor that it could constitute valid consideration for it. To insert such a condition in an agreement of khula was contrary to the law and the Injunctions of Islam.

In the agreement under consideration the wife in order to obtain khula not only surrendered her dower (haq mehr) but also agreed to forego the custody of her son.

The agreement to the extent that the mother surrendered the custody of her child or which stopped the mother to claim his custody was not lawful consideration; it was contrary to the Islamic principles governing hizanat and the law determining the custody of minors and thus forbidden.

An agreement the object or consideration of which was against public policy was void, as stipulated in section 23 of the Contract Act, 1872.

The welfare of a minor could not be subsumed by the interest of his father, and if this was done it would be against public policy, and such clause or condition would be void. Such a stipulation would also be void under section 25 of the Contract Act because it was without consideration.

Impugned judgment of the High Court was set-aside and consequently, the father was directed to hand over the physical custody of the minor to the mother.

S. 25---Custody of minor---Welfare of child.

Disabled mother with no substantial source of income.

In determining the welfare of the child and his custody neither the mother's physical condition nor her income were determinative factors.

Arts. 9, 14 & 25---Persons with disabilities or persons with different abilities.

Use of pejorative words such as 'crippled' or 'disabled' in judgments.

Such words seriously offended the right to be a person thereby infringing constitutional guarantees like right to life, right to human dignity and right to non-discrimination of persons with disabilities, thereby violating Arts. 9, 14 & 25 of the Constitution.