KARACHI: The Sindh High Court (SHC) has restrained the tax authorities from taking any final decision on a constitutional petition filed by M/s ICTSI Mauritius against show cause notice for recovery of levy support tax.
The notice was issued by additional commissioner Inland Revenue Audit Range B Zone-01, Corporate Regional Tax Office. The court adjourned the hearing for fourth week of January 2017.
A two-member bench headed by Justice Aqeel Ahmed Abbasi issued notices to the tax authorities and deputy attorney general of Pakistan, directing them to file their respective para-wise comments on the next date of hearing.
Sources told Customs Today that counsel for the petitioner stated that petitioner is a non-resident company in Pakistan and is wholly, solely and permanently resident of the Republic of Mauritius and fulfilling all liabilities regularly.
According to the petitioner, additional commissioner Inland Revenue Audit Range B Zone-01 Corporate Regional Tax Office issued show cause notice under section 122 ( 9) of the Income Tax Ordinance, 2001 on December 7, 2016 with the intention to levy support tax under section 4-B of the Income Tax Ordinance 2001.
The petitioner argued that tax in excess of 10 percent cannot be levied as the word “tax” as defined in section 2 (68) of the Income Tax Ordinance, 2001 and article 2 of double taxation against includes all tax.
Citing secretary Revenue Division, chairman Federal Board of Revenue, commissioner Inland Revenue Zone-I Corporate Regional Tax Office and additional commissioner Inland Revenue Audit Range B Zone-I Corporate Regional Tax Office as respondents, the petitioner pleaded the court to declare the act of the respondents as illegal, mala fide and arbitrary.
