Returns and Assessments Chapter- 17
where no assessment or return has been made, the tax year or tax years comprising the period
ending on the said date and the said period shall be deemed to be a separate tax year.
The CIR may serve a notice on any person who, in his opinion, is likely to leave Pakistan as
stated above, to furnish within such time as may be specified in such notice, a return or returns
of taxable income for the tax year or tax years.
All the provisions of this Ordinance shall applicable as per relevant tax year. Notwithstanding anything contained in any other law, for the time being in force, where on the
basis of information received from any offshore jurisdiction, the CIR has reason to believe that
such person who is likely to leave Pakistan may be involved in offshore tax evasion or such
person is about to dispose of any such asset, the CIR may freeze any domestic asset of the
person including any asset beneficially owned by the person for a period of 120 days or till the
finalization of proceedings including but not limited to recovery proceedings under this
Ordinance whichever is earlier.2 1. Tax clearance certificate [Rule 221]
A person leaving Pakistan permanently may apply to the CIR for a tax clearance certificate
referred to in section 145(3) where -
(a) the person has satisfied all income tax liabilities; or
(b) the person has made arrangements to the satisfaction of CIR for payment of income tax
liabilities. The above application shall be in the prescribed form under this rule and shall be accompanied
by a certificate of guarantee of the applicant's employer or business associate in the prescribed
form under this rule.21 .1 Form of tax clearance certificate u/s 145 [Rule 222]
For section 145(3), a tax clearance certificate shall be in the form given under this rule.
(1) Where any person is likely to leave Pakistan during the currency of tax year or shortly after its
expiry with no intention of returning to Pakistan, he shall give to the Commissioner a notice to that
effect not less than fifteen days before the probable date of his departure (hereinafter in this
section referred to as the ‘said date’).
(2) The notice under sub-section (1) shall be accompanied by a return or returns of taxable income
in respect of the period commencing from the end of the latest tax year for which an assessment
has been or, where no such assessment has been made, a return has been made, as the case
may be, and ending on the said date, or where no such assessment or return has been made, the tax
year or tax years comprising the period ending on the said date; and the period commencing from
the end of the latest tax year to the said date shall, for the purposes of this section, be deemed to be
a tax year (distinct and separate from any other tax year) in which the said date falls.
(3) Notwithstanding anything contained in sub-sections (1) and (2), the Commissioner may serve
a notice on any person who, in his opinion, is likely to leave Pakistan during the current tax year
or shortly after its expiry and has no intention of returning to Pakistan, to furnish within such time
as may be specified in such notice, a return or returns of taxable income for the tax year or tax years
for which the taxpayer is required to furnish such return or returns under sub-section (2).
(4) The taxable income shall be charged to tax at the rates applicable to the relevant tax year and all
the provisions of this Ordinance shall, so far as may be, apply accordingly.
(5) Notwithstanding anything contained in any other law, for the time being in force, where on the
basis of information received from any offshore jurisdiction, the Commissioner has reason to believe
that such person who is likely to leave Pakistan may be involved in offshore tax evasion or such
person is about to dispose of any such asset, the Commissioner may freeze any domestic asset of
the person including any asset beneficially owned by the person for a period of one hundred and
twenty days or till the finalization of proceeding including but not limited to recovery proceedings
under this Ordinance whichever is earlier.- Audit by Commissioner Inland Revenue [Section 177]