ISPAK: Finance Ordinance 2001

[nadeem]

Dear All,   You must be aware that CBR has made available the draft of proposed finance Ordinance 2001 on their site www.cbr.gov.pk for suggestions.   Please read it through and see what changes could be suggested keeping which are good for the industry and the country. Please remember, the suggestions should be of procedural nature facilitating the assessee and not seeking exemptions.   I have put forward following suggestions through a renowned Tax consultants with regard to our long outstanding issue of tax deduction on foreign payments. These if included will resolve the whole issue permanently.   Regards Ahmad Nadeem Syed    ---------------------------------------------------------------------------------------------------------------- Revision Required Part V Section 253 and clause 6   The time period (Max 7 days) is to be defined for Commissioner to respond to the notification by the person intending to make the payment, failing which, the non-deduction will be treated as legitimate.   Insertion Of New Clause Part V, Section 253, and clause 8   Where a person makes a payment to a non-resident person from a country having double Taxation Treaty with Pakistan and do not deduct tax on such payment under the provisions of such Treaty whereby such non-resident do not have permanent establishment in Pakistan, the person making the payment will furnish an affidavit to such effect to the Commissioner providing following details:   (a)               The name and address of the non-resident person (b)               The nature and amount of the payment (c)               The relevant provisions and references of the Treaty