Introduction and Geographical Source of Income Chapter- 05
ICMAP PAST PAPERS THEORETICAL QUESTIONS
Q. NO. 3(d) Autumn 2016
Discuss how you would differentiate the normal tax regime (NTR) from the final or presumptive tax regime
(FTR).
Q. No. 2(b) August 2014 Mr. Aslam is a non-resident person working as a Senior Manager in one of the
renowned companies of the United States of America. In addition to his foreign salary income, he has some
properties and investments in shares in Pakistan from which he is earning handsome income. Mr. Aslam
has little knowledge about the Pakistani Tax Laws and he is worried about the payment of his tax liability for
the tax year ended June 30, 2014.
Required: Suppose you are Tax Consultant and Mr. Aslam has sought your professional opinion in respect
of the following matters in the light of the Income Tax Ordinance, 2001:
(i) Being a non-resident whether foreign-source income and Pakistan-source income of Mr. Aslam are
taxable or exempt from tax? Discuss.
(ii) What types of Pakistan-source Income are taxable?
(iii) Under what regime the Pakistan-source income of Mr. Aslam will be treated?
(iv) What is the last date for submitting the statement in lieu of return in respect of his Pakistan-source
income?
Q. No. 3(a) February 2014 Noorani Merchant and Co. is a tax consultancy firm. It has a list of clients who
seek advices in respect of various tax matters.
Required: Assume that you have been working as a Tax Advisor of Noorani Merchant and Co. and is
given a task to determine the residential status of the following clients for the tax year ended June 30, 2014
under the given three scenarios. Also substantiate your answer with reasons in the light of the provision of
the Income Tax Ordinance, 2001 and the Income Tax Rules, 2002:
(i) Mr. Fahim resides in London and works as Chief Accountant in a British Company. Assume that he
has come to Pakistan for the first time on a special assignment from his company on March 1, 2014
and left Pakistan on October 31, 2014.
(ii) Mr. Saleem is a Federal Government employee. Assume that he is posted to the United Arab
Emirates for taking special training on Petroleum Exploration Project from July1, 2013 to June 30,
2014.
Ms. Saima has got a job in St. Micheal Pharma, a reputable company of United State of America (USA).
She went to USA on December 28, 2013 to assume her responsibilities as a Managing Director of the
company. Assume that in April, 2014 her company sent her to China on training. On May 31st 2014 on her
way back to USA she stayed in Karachi for three days due to cancellation of flights.
(b) There are various modes of charging Income Tax under the Income Tax Ordinance, 2001 commonly
known as “Tax Regimes”. Briefly describe each of the following modes of taxation:-
(i) Normal Tax Regime (NTR)
(ii) Separate Tax Regime (STR)
(iii) Final Tax Regime or Presumptive Tax Regime (FTR)
(iv) Minimum Taxation Regime (MTR)
Q. NO. 2(c) SUMMER 2010 What does section 102 of the ITO, 2001 say about foreign source salary of
resident individuals?