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FIN623 Taxation Management GDB Solution & Discussion Fall 2017
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According to ITO 2001 u/s 82, residential status of Mr. Shabeer is non-resident. Because u/s 82 an individual shall be a resident individual if the individual is present in Pakistan for period amounting in aggregate to 183 days or more. Mr. Shabeer stays less than 183 days.
The adjustment of loan as dividend was not correct because u/s 2(19) of ITO 2001, dividend does not include any advance or loan made to shareholder by company in ordinary course of its business.
According to ITO 2001 u/s 74, the tax year of Tri-star Ltd is normal tax year.
According to ITO 2001 u/s 50 the profit of Rs 0.15 million be considered as foreign source of income.