Income Tax Ordinance, 2001 — Section 145: Assessment of persons about to leave Pakistan

1[145. Assessment of persons about to leave Pakistan.— (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.] 2[(5) Notwithstanding anything contained in any other law, for the time being in force, where on the basis of information received from any offshore 1 Section 145 substituted by the Finance Act, 2003. The substituted section 145 read as follows: “145. Collection of tax from persons leaving Pakistan permanently.- (1) Where the Commissioner has reasonable grounds to believe that a person may leave Pakistan permanently without paying tax due under this Ordinance, the Commissioner may issue a certificate containing particulars of the tax due to the Commissioner of Immigration and request the Commissioner of Immigration to prevent that person from leaving Pakistan until that person

(a)makes payment of tax in full; or

(b)makes an arrangement satisfactory to the Commissioner for payment of the tax due.

(2)A copy of a certificate issued under sub-section (1) shall be served on the person named in the certificate if it is practicable to do so.

(3)Payment of the tax specified in the certificate to a customs or immigration officer or the production of a certificate signed by the Commissioner stating that the tax has been paid or satisfactory arrangements for payment have been made shall be sufficient authority for allowing the person to leave Pakistan.” 2 New sub-section (5) added through Finance Act, 2019. 292 Chapter X – Procedure 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.] 146. Recovery of tax from persons assessed in Azad Jammu and Kashmir 1 [and Gilgit-Baltistan.]— (1) Where any person assessed to tax for any tax year under the law relating to income tax in the Azad Jammu and Kashmir 2[or Gilgit Baltistan] has failed to pay the tax and the income tax authorities of the Azad Jammu and Kashmir 3[or Gilgit-Baltistan] cannot recover the tax because

(a)the person’s resi44dence is in Pakistan; or

(b)the person has no movable or immovable property in the Azad Jammu and Kashmir4[or Gilgit-Baltistan], the Deputy Commissioner in the Azad Jammu and Kashmir 5[or Gilgit-Baltistan] may forward a certificate of recovery to the Commissioner and, on receipt of such certificate, the Commissioner shall recover the tax referred to in the certificate in accordance with this Part.

(2)A certificate of recovery under sub-section (1) shall be in the prescribed form specifying

(a)the place of residence of the person in Pakistan;

(b)the description and location of movable or immovable property of the person in Pakistan; and

(c)the amount of tax payable by the person.