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Assignment-01-AT-Fall-2024-25092024-043859pm

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anoushaiftikhar02
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© © All Rights Reserved
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Download as DOC, PDF, TXT or read online on Scribd
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Bahria University

Advanced Taxation

Assignment No.1 (Fall 2024)

Faculty: M. Khalid (Petiwala) Total Marks 10


_____________________________________________________________

Question 1
In view of the provisions of Income Tax Ordinance, 2001, calculate the number of
days, wherever applicable, to determine the residential status of the following
persons for the tax year 20X3:

(i) Mr. Raheel, a Pakistani national, proceeded to Saudi Arabia on 24.12.20X2 to


assume responsibilities on his new job. He visited Karachi from 20.6.20X3 to
24.6.20X3 for presenting a paper in a seminar but due to unavoidable
circumstances, the seminar was cancelled.
(Marks 2)

(ii) Mr. Khaqan, an officer working at Ministry of Foreign Affairs, since last three
years, was posted to the Pakistan’s mission in Geneva from 1.11.20X2 to
30.6.20X3. (Mark 1)

(iii) Achariya Associates is a partnership firm and provides consultancy services in


Pakistan as well as United Kingdom (UK). The management and control of its
affairs is situated partly in UK and partly in Pakistan.
(Mark 1)

(iv) Mr. Shandane, a Nigerian football coach, came to Pakistan for the first time on
28.2.20X3. He left Pakistan on 31.8.20X3.
(Marks 2)

Question 2
Choose the correct answer:
(Marks 4)

1 A private company incorporated on 31.10.20X7 and started its


furniture manufacturing operations from 1.2.20X8.

The directors of the company decided to opt for the normal tax year,
close the company’s accounts on 30.6.20X8 and want to file an
application to get the permission from the tax department.

The required action in this case:

(A) They should make an application before 30.6.20X8


(B) They are not supposed to make any application
(C) They should file an application at the time of filing of first return
of income [due date for filing of return is 31.12.20X8]
(D) None of the above

2 A public company is incorporated on 31.10.20X7 and the directors


want to close the company’s first accounts on 31.12.20X7.

Approval in this respect from the relevant tax authority has been
obtained.
The relevant tax year in this case would be:

(A) Normal tax year 20X7


(B) Normal tax year 20X8
(C) Special tax year 20X7
(D) None of the above

3 Resident company is a company which is:

(A) Controlled / managed partly in Pakistan in that year but


incorporated outside Pakistan
(B) Controlled / managed wholly from outside Pakistan but
incorporated in Pakistan
(C) Quoted on stock exchange in New York Stock Exchange
(D) None of the above

4 Seven doctors having nationality of Australia have decided to start


their medical practice in the rural areas of Punjab, Pakistan and for
this purpose they set up a joint venture in Pakistan.

Two of them will be stationed in Pakistan on permanent basis.

The remaining doctors will have frequent visits but not expected to
stay more than 100 days in Pakistan.

Around 50 Pakistani doctors will be employed by the joint venture.

The joint venture will be considered as a resident tax entity on which


of the following grounds:

(A) Most of the employee doctors are resident and the joint venture
will also be resident without any condition
(B) If few or all of the meetings are held in Karachi
(C) If permission is granted by the Commissioner to consider the
joint venture as resident
(D) None of the above is correct

5 Mr. Suraj Chacha is a citizen of USA and wants to set up a business in


Karachi on a two years agreement with a local supplier.

After two years’ time the agreement is renewable if he decides to


continue his business activity in Pakistan.

However, due to his business in New York he will not be able to stay in
Karachi on permanent basis. His expected stay in Pakistan is 190 days
in the current tax year.

He wants to know as to whether he will be considered as a short term


resident on any of the following bases:

(A) His stay in Pakistan is not expected to be more than 3 years


(B) He will not receive his foreign source income in Pakistan
(C) Permission is granted by the Commissioner to declare him as
short term resident
(D) None of the above

2
6 Mr. Munna Patwaari is a citizen of England and visits Pakistan
frequently.

He intends to set up a business in Lahore and he is concerned about


his tax status.

He wants to know as to which of the following days shall be counted


for the purpose of his tax residential status:

(A) Days he spends in England but busy in the planning of business


set up in Lahore
(B) A day in transit in Karachi while he was going to Dubai from
London
(C) Days in Karachi for meeting with the prospective customers
before the start of business
(D) He intends to stay in Pakistan for celebrating 14 th August but
not possible due to his 17th marriage in UK on 15th August

7 What is the minimum number of days for which an individual has to be


present in Pakistan during a tax year to be treated as resident for that
tax year?

(A) 120 days continuously or in different periods during a tax year


and 360 days during the preceding 4 tax years
(B) 120 days continuously during a tax year
(C) 183 days continuously or in different periods during a tax year
(D) 182 days continuously or in different periods during a tax year

8 An individual citizen of Pakistan is considered returning expatriate for


tax purpose where he was non-resident during the ___ preceding tax
years:

(A) 3
(B) 5
(C) 7
(D) None of the above

- The end -

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