| Case ID |
0f8dbb1e-2698-4b1e-a10a-1f06b12a591e |
| Body |
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| Case Number |
Civil T.R. No.30 of 1976 |
| Decision Date |
Apr 17, 1993 |
| Hearing Date |
Apr 17, 1993 |
| Decision |
The Lahore High Court held that the petitioners, non-resident Swedish nationals, were entitled to exemption from income tax under Article XIII (i) of the Agreement for Avoidance of Double Taxation between Pakistan and Sweden. The court found that the petitioners were acting on behalf of the Swedish Company while supervising the erection of machinery in Pakistan and that their stay in the country was less than 183 days. The tribunal's earlier findings were deemed unsustainable due to misinterpretation of the relevant agreements. Consequently, the court ruled in favor of the petitioners, confirming their exemption from tax liabilities on the income received for services rendered in Pakistan. |
| Summary |
In the case of Civil T.R. No.30 of 1976, the Lahore High Court addressed the tax obligations of non-resident Swedish nationals working in Pakistan. The court examined the implications of the Income Tax Ordinance, 1979, specifically Section 163, in conjunction with the Convention for Avoidance of Double Taxation between Pakistan and Sweden. The petitioners, employed by a Swedish company, were in Pakistan for less than 183 days while supervising machinery installation. The court found that they qualified for tax exemption under the agreement, ruling against the Income Tax Appellate Tribunal's prior decision. The case highlights critical aspects of international tax law, particularly concerning the treatment of foreign workers and the interpretation of bilateral tax agreements, making it a significant reference point in tax jurisprudence. |
| Court |
Lahore High Court
|
| Entities Involved |
M/s. Defibrator A.K. Ticlolag of Stockholm, Sweden,
M/s. Crescent Sugar Mills and Distillery Ltd., Lyallpur
|
| Judges |
M. Mahboob Ahmad C.J.,
Malik Muhammad Qayyum, J
|
| Lawyers |
Muhammad Amin Butt,
Muhammad Ilyas Khan,
Mr. Bilal Zafar, Advocate,
Mr. Shafique-ur-Rehman Siddique, D.R.
|
| Petitioners |
M/s. Lion Press (Pvt) Ltd, Lahore
|
| Respondents |
The C.I.T., Rawalpindi,
Appellate Tribunal Inland Revenue, Lahore Bench, Lahore,
The CIR, Zone Ell, RTO, Lahore
|
| Citations |
1994 SLD 72,
1994 PTD 590,
(1994) 69 TAX 89
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
163
|