ISLAMABAD: The Islamabad High Court (IHC) has directed the Large Taxpayer’s Unit (LTU) to decide the fate of appeal filed by M/s Pakistan Telecommunication Corporation (Private) Limited, seeking tax exemption on its business profit under provisions of domestic and international taxation rules to avoid double taxation.
The appellant had submitted that business profit being generated after its collaboration with a Singapore based partner did not owe taxation twice under the international law and agreement between two republics. It had challenged the LTU order number 79 dated October 21, 2013 creating demand of duty taxes.
A single bench of the IHC comprising Justice Aamer Farooq heard the case and directed the main respondent, LTU, to decide the fate of the company’s departmental appeal within 60 days.
The appellant had claimed that LTU’s order issued in violation and ignorance of domestic taxation laws, and the Agreement for Avoidance of Double Taxation.
The court also accepted appellant’s pray to restrain LTU from realizing recovery endeavors till the finalization of departmental appeal.
Large Taxpayer’s Unit, Islamabad’ chief commissioner, commissioner inland revenue, deputy commissioner and Federation of Pakistan through Federal Board of Revenue was made respondent in the case.
