MTC Represents Dozens Of Taxpayers In Challenge To Capital Value Tax
The Firm is representing a number of taxpayers who have challenged the imposition of Capital Value Tax on foreign assets under Section 8(2)(b) of the Finance Act, 2022. Under the aforesaid provisions, any resident individual in Pakistan having foreign assets (both movable and immovable) exceeding PKR 100 million is liable to pay 1% Capital Value Tax.
The key arguments are that the law is discriminatory and violative of the Constitution of Islamic Republic of Pakistan, 1973 because no such tax is imposed on resident individuals who have local assets in excess of PKR 100 million, and in any event foreign assets were declared by most of such residents either after accumulating such assets by earning abroad or pursuant to an amnesty scheme offered in the year 2018. Further, the tax has been imposed with retrospective effect which has violated the vested rights of the taxpayers.
We have represented such clients before the High Court of Sindh at Karachi and the matter is currently pending before the Supreme Court of Pakistan. MTC’s team includes Arshad Tayebaly, Senior Partner, Omer Memon, Partner, and Aitzaz Manzoor Memon, Senior Associate.