Introduction and Geographical Source of Income Chapter- 05
Q.3 (a) Spring 2013 State the provisions of the Income Tax ordinance, 2001 for determining the residential
status of an Association of persons.
Q.3 (a) Autumn 2012 State the provisions of the Income Tax Ordinance, 2001 with regards to the
residential status of individuals and companies.
Q.3 (b) Autumn 2012 Margaret, a German national was employed as a Technical Manager of Faiza
Chemicals Limited, a resident company, on 1 October 2010 for a term of two years. Under the terms of
employment, she was allowed to deliver lectures at various professional organizations. During tax year
2012, she conducted three workshop sessions, the details of which are as follows:
- Workshop Session in Lahore: A fee of US$ 15,000 in equivalent Pak Rupees was received from a local
event manager. The fee was credited to her bank account maintained in Karachi. - Workshop Session in Munich: A fee of US$ 25,000 was received in Germany in her Munich bank
account. - Workshop Session in Dubai: A fee of US$ 20,000 was remitted to her bank account in Karachi.
Required: Discuss the taxability of the amounts received by Margaret for conducting the workshop
sessions during the tax year 2012.
Q.4 (a) Autumn 2011 Briefly discuss residential status of the following persons for the tax year 2011 under
the ITO, 2001.
(i) Mr. Shah has been working as an Information Analyst in the Ministry of Foreign Affairs. On 1
November 2010, he was posted to Pakistan Embassy in Canada for three years.
(ii) Asif Learning Center is a partnership concern, providing IT training to professionals in Pakistan, UAE
and Saudi Arabia. Up to 31 July 2010, the management and control of its affairs was situated partly in
Pakistan. However, with effect from 1 August 2010, the entire management and control of the affairs
of the partnership was shifted to Dubai.
(iii) Mr. Liaquat was sent to Pakistan on a special assignment by his UK-based company on 1 March
- He left Pakistan on 09 September 2011.
(iv) Farooq Trading LLC was incorporated as a limited liability company in UAE. The management and
control of its affairs are situated wholly in Pakistan.
Q.2(b) March 2009: Briefly discuss residential status of following persons under the ITO, 2001 for the tax
year 2009.
(i) Asif is an employee of Baluchistan Government, who has been sent to United Kingdom for an official
assignment on 1.12.2007 for two years.
(ii) Messrs Akhtar Abbas and Co. is a partnership firm, doing business of financial consultancy in
Pakistan as well as United Arab Emirates (UAE). The management and control of its affairs is
situated partly in UAE and partly in Pakistan.
Q.4(b) Spring (March) 2006: Mr. A, a Pakistani Citizen, returned to Pakistan in November 2004 after
completing his employment contract In United Arab Emirates (UAE). He worked till October 2004in UAE
where there was no tax on salaries. Mr. A is in Pakistan since then and has been employed by a local
company. Explain the tax implication on Mr. A's income, earned in UAE and Pakistan, for the tax year 2005.
Q.6(a) Sept 2003: Under what circumstances a resident individual is entitled to tax on his foreign source
salary, and when is the foreign tax treated as having been paid?
Q.2(ii) March 2000: State the basis of taxation regarding residents and non-resident.
Q.6 Sept 2000: Briefly describe the provisions related to the scope of total Income.
Q.9 May 1994: Which of the following appear to be correct in the given choices?
The income of a non-resident individual is taxed in Pakistan which is:
(a) Earned and received in Pakistan
(b) Earned and received abroad