| Case Details | |
|---|---|
| Case ID | e250d0b1-0fd2-49aa-908f-f84f6373b637 |
| Body | View case body. Login to View |
| Case Number | C.P. No. D-4942 of 2022 |
| Decision Date | Dec 30, 2022 |
| Hearing Date | Nov 01, 2022 |
| Decision | The case revolves around the constitutionality of Section 8 of the Finance Act, 2022, which imposes a Capital Value Tax on foreign assets held by residents. The petitioners argued that Parliament lacked the legislative competence to impose such a tax, particularly on immovable properties located abroad, citing constitutional provisions. However, the court held that the foreign assets were part of the petitioners' wealth statements and could be taxed as part of the total assets under Entry 50 of the Federal Legislative List. The court emphasized the sovereign right to legislate on matters concerning residents, regardless of the geographical location of assets. Ultimately, the petitions were dismissed, affirming the validity of the tax imposed. |
| Summary | In the case of C.P. No. D-4942 of 2022, the Sindh High Court addressed the legal challenges posed by petitioners regarding the imposition of a Capital Value Tax on foreign assets under the Finance Act, 2022. The petitioners contended that the Parliament lacked the authority to levy taxes on immovable properties situated outside Pakistan, referencing Articles 141 and 142 of the Constitution. The court examined the jurisdiction of Parliament to legislate on foreign assets and concluded that the foreign assets declared in wealth statements could indeed be subjected to taxation. The ruling highlights the balance between legislative powers and constitutional limits, affirming the government's ability to tax residents on their global assets, thereby ensuring compliance with tax laws. This case underscores the importance of understanding tax obligations for residents with foreign holdings and the legal frameworks governing such matters. |
| Court | Sindh High Court |
| Entities Involved | Not available |
| Judges | Muhammad Junaid Ghaffar, Justice, Agha Faisal, Justice |
| Lawyers | Ovais Ali Shah, Abdul Rehman, Sufiyan Zaman, Jawaid Farooqui, Anwar Kashif Mumtaz, Dr. Tariq Masood, Iqbal Salman Pasha, Abdul Rahim Lakhani, Ms. Lubna Pervez, Muhammad Imran Khan, Syed Riazuddin, Rashid Anwar, Imtiaz Ali, Naeem Suleman, Fizzah Bucha, Kashan Ahmed, Arshad M. Tayebaly, Qazi Umair Ali, Abdallah Azzaam Naqvi, Shafqat Zaman, Maryam Riaz, Abid H. Shaban, Ahmed Ali Hussain, Muhammad Aleem, Usman Alam, Muhammad Mazharul Hassan, M/s. Muhammad Osman Ali Hadi, Mr. Omar Memon, Mushtaq Hussain Qazi, Jahanzeb Awan, Ameen Mohammad Bandukda, Abdur Raafae Soori, Wishno, Muhammad Jawed Zakria, Abdul Jabbar Mallah, Atta Muhammad Qureshi, Imtiaz Ali Sahito, Saifullah Khawaja, Nahl Chamdia, Naveeda Basharat, Asad Manzoor Halepota, Aitezaz Manzoor Memon, Saad Fayyaz Memon, Muhammad Asad Ashfaq Tola, Muhammad Amayed Ashfaq Tola, Arshad Hussain Shehzad, Muneer Ahmed Sahito, Ajeet Kumar, Nadir Hussain Abro, Vishwa Mittar, Syed Muhammad Ahsan, Ammar Ather Saeed, Muhammad Rashid Khan Mahar, Aman Aftab, Muhammad Inzimam Sharif, Muhammad Aizaz Ahmed, Syed Hamza Ahmed Hashmi, Ghazala Rafiq, Elahi Bakhsh, Muneeb uddin Qidwai, Muhammad Arshad Athar, Nasir Latif Khan, Muhammad Ahmed Masood, Shams Mohiuddin Ansari, Tairmur Ali Mirza, Syed Sultan Ahmed, Muhammad Ali Aziz, Muhammad Naqqash Siddiqui, Syed Muhammad Hussain, Ovais Farooqui, Umer Ilyas, Ameer Hyder, Hamda Ali Khan |
| Petitioners | Irfan Hussain Halai and others |
| Respondents | Federation of Pakistan and others |
| Citations | 2023 SLD 50 = (2023) 127 TAX 49 |
| Other Citations | Not available |
| Laws Involved | Income Tax Ordinance, 2001, Constitution of Pakistan, 1973 |
| Sections | 9, 116(2), 141, 142 |