Taxation System Chapter- 04
“NCCPL” [U/s 2(35AA)] means National Clearing Company of Pakistan Limited, which is a company
incorporated under the Companies Act, 2017 and licensed as “Clearing House” by the SECP or any
subsidiary of NCCPL notified by the Board for the purpose of this clause;
"Non-banking finance company" [U/s 2(35B)] means an Non-Banking Finance Company (NBFC) as
defined in the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003.
Explanation: There was a choice between a specific definition of every type of financial institution and one
general definition covering all of them. At present there simultaneously exist specific definitions in respect of
various financial institutions as well as general definition of the expression 'financial institutions'. Drafting
assignments should be given to some professional draftsmen to make the new Ordinance free of such legal
mistakes and duplications.
"Non-profit organization" [U/s 2(36)] means any person other than an individual, which is -
(a) established for religious, educational, charitable, welfare purposes for general public, or for the
promotion of an amateur sport;
(b) formed and registered by or under any law as a non-profit organization;
(c) approved by the Commissioner Inland Revenue for specified period, on an application made by such
person in the prescribed form and manner, accompanied by the prescribed documents and, on
requisition, such other documents as may be required by the Commissioner Inland Revenue and
none of the assets of such person confers, or may confer, a private benefit to any other person;
Explanation: It covers organizations running for charitable, religious,-educational purposes and promotion
of non-professional sport. It covers such organizations that adhere to the above activities and get registered
with the Commissioner Inland Revenue and do not confer a private benefit on any other person. The
concept is similar to organizations covered under Rule 47(1) (d) of the repealed Income Tax Rules, 1982.
For approval in terms of sub-clause (c) please see rule 211.
"Non-resident person" [U/s 2(37)] A person shall be a non-resident person for a tax year if the person is
not a resident person for that year.
Explanation: It means a person defined in section 81 as "A person shall be a non-resident person for a tax
year if the person is not a resident person for that year."
"Non-resident taxpayer" [U/s 2(38)] means a taxpayer who is a non-resident person;
Explanation: It means a person who is covered in clause (37) above.
"Officer of Inland Revenue" [U/s 2(38A)] means any Additional Commissioner Inland Revenue, Deputy
Commissioner Inland Revenue, Assistant Commissioner Inland Revenue, Inland Revenue Officer, Inland
Revenue Audit Officer, District Taxation Officer, Assistant Director Audit or any other officer howsoever
designated or appointed by the Board for the purposes of this Ordinance;
Explanation: The expression "taxation officer" defined in omitted clause (65) of section 2 became
redundant after merger of income tax, sales tax and federal excise in Inland Revenue Service.
“Offshore asset” [U/s 2(38AA)] in relation to a person, includes any movable or immovable asset held,
any gain, profit, or income derived, or any expenditure incurred outside Pakistan.
“Offshore evader” [U/s 2(38AB)] means a person who owns, possesses, controls, or is the beneficial
owner of an offshore asset and does not declare, or under declares or provides inaccurate particulars of
such asset to the Commissioners;
“Offshore enabler” [U/s 2(38AC)] includes any person who, enables, assists, or advises any person to
plan, design, arrange or manage a transaction or declaration relating to an offshore asset, which has
resulted or may result in tax evasion.
"Online marketplace" [U/s 2(38B)] means an information technology platform run by e-commerce entity
over an electronic network that acts as a facilitator in transactions that occur between a buyer and a seller.
"Originator" [U/s 2(39)] means Originator as defined in the Asset Backed Securitization Rules, 1999;