| Case ID |
f94325bb-f3d7-40e2-b54b-b99f70386ae5 |
| Body |
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| Case Number |
Civil Review Petitions Nos. 432-K to 459-K of 2022 |
| Decision Date |
Feb 09, 2023 |
| Hearing Date |
Feb 09, 2023 |
| Decision |
The Supreme Court dismissed the review petitions, affirming the High Court's judgment which had comprehensively addressed all questions of law raised. The Court concluded that the levy of Super Tax was consistent with existing treaties and laws, and the petitioners failed to demonstrate any error in the High Court's findings. The decision emphasized the principle that treaties for double taxation avoidance take precedence over general tax provisions, and any ambiguity in the law does not warrant a rehearing of the case. The Court reiterated the importance of adhering to established legal principles and articulated that review petitions should not be used as a means to reargue settled matters. |
| Summary |
In the case of Civil Review Petitions Nos. 432-K to 459-K of 2022, the Supreme Court of Pakistan addressed significant issues surrounding the taxation of non-resident companies under the Income Tax Ordinance, 2001. The review petitions were filed against the High Court's decision which had determined the applicability of Super Tax in light of Double Taxation Treaties (DTTs). The petitioners argued that the Super Tax imposed was separate from income tax and should not apply to non-resident companies as per the terms of the treaties. However, the Supreme Court upheld the High Court's ruling, stating that the DTTs were designed to prevent double taxation and should be interpreted to include all forms of taxes, including the Super Tax. This case highlights the complexities of international tax law, the importance of treaty obligations, and the judiciary's role in interpreting tax legislation in accordance with constitutional principles. The decision not only reinforces the legal framework governing taxation but also underscores the necessity for clarity and consistency in tax policy, especially for foreign entities operating in Pakistan. This ruling is pivotal for legal practitioners and businesses alike, as it sets a precedent for the interpretation of tax treaties and their implications for corporate taxation in Pakistan. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
COMMISSIONER INLAND REVENUE Z-III,
Messrs MSC SWITZERLAND GENEVA
|
| Judges |
Muhammad Ali Mazhar,
Syed Hasan Azhar Rizvi
|
| Lawyers |
Dr. Shah Nawaz, Advocate Supreme Court,
Irfan Mir Halepota, Advocate Supreme Court,
Syed Mehmood Abbas, Advocate-on-Record
|
| Petitioners |
,
COMMISSIONER INLAND REVENUE Z-III, CORPORATE REGIONAL TAX OFFICE, TAX HOUSE, KARACHI
|
| Respondents |
others,
Messrs MSC SWITZERLAND GENEVA
|
| Citations |
2023 SLD 1398,
2023 SCMR 1011,
(2023) 128 TAX 291
|
| Other Citations |
2017 SCMR 140,
PLD 2020 SC 227,
2016 SCMR 1961,
PLD 2016 SC 421,
2010 SCMR 1049,
2007 SCMR 755,
2006 SCMR 1574,
PLD 1962 SC 335,
PLD 2005 SC 311,
PLD 1997 SC 280,
2006 SCMR 562,
2004 SCMR 1770,
1996 SCMR 158,
1978 SCMR 367,
PLD 1977 SC 437,
1995 SCMR 922,
1975 SCMR 115,
1976 SCMR 417,
1984 SCMR 1033(1),
1979 SCMR 89,
1979 SCMR 347,
1968 SCMR 729,
1979 SCMR 241,
PLD 1998 SC 363,
2014 SCMR 1481,
1981 SCMR 518,
PLD 1979 SC 941
|
| Laws Involved |
Income Tax Ordinance, 2001,
Constitution of Pakistan, 1973
|
| Sections |
4B,
44(1),
107,
107(1),
109,
185(3),
188
|