PM Nawaz Sharif Sons Obliged to File Income Tax Returns?

Nawaz Sharif sons obliged to file taxes

Hussain and Hassan Nawaz, sons of PM Nawaz Sharif, are only obliged to file income tax returns if they fall into Resident category i.e. they are earning through Pakistani source of income.

According to Business Recorder, tax lawyer, Waheed Shahzad Bhutt in a TV show expressed that under the tax laws of Pakistan, the sons of Nawaz Sharif are only required to file/declare their income/assets on total world income basis if they come under the definition of a Resident.

According to Pakistan’s tax laws, being a resident or non-resident has nothing to do with nationality or country of origin of passport. A person is a resident for the tax year if he/she is present in Pakistan for a period of 183 or more days in that year.

For a resident, income would be computed by accounting the Pakistan source of income and foreign-source income amounts. The income tax will be applicable to the person’s combined income under all heads of income for the year minus any exemption from tax under any of the provisions of Income Tax Ordinance.

Amid Panama scandal, the question of tax returns has been asked repeatedly. Many people refrain from paying taxes due to a belief that they won’t be utilized well. From the tax collected in the first quarter of the fiscal year 2016-17, 66pc was spent on debt servicing. Which means, a very little amount was left for the government expenditure, which is alarming.

There has been a lot of confusion about who in Pakistan is supposed to file their income tax returns. So, now one only has to see whether they are  a resident or a non-resident to answer this question.

Leave a Comment

Your email address will not be published. Required fields are marked *

Name *