Islamabad: The Federal Board of Revenue (FBR) is considering publishing the names of high-value tax defaulters who failed to deposit Capital Value Tax (CVT) on foreign assets and pay tax on the deemed income, news sources reported on December 28.
Under the new measurement, the names of those who failed to submit their taxes by the deadline of December 31 will be released to the public. However, caution is being exercised to ensure that those defaulters are given a legal opportunity to explain their position under the law before their names are made public.
The decision came as the FBR announced that taxation measures totalling approximately PKR 250 billion are being challenged, including the super tax, the CVT on foreign assets, and the tax on deemed income imposed on the elite class. Around 6,000 high-net-worth individuals are required to pay the CVT on foreign assets, and nearly 4,000 were required to pay the super tax imposed on high-income earners.
Meanwhile, in a case before the Sindh High Court (SHC), the court has ruled that the super tax on high-earning individuals will not apply for the Tax Year 2022, but only for Tax Year 2023 and forward. The Balochistan High Court has issued notices to the FBR regarding the constitutionality of Section 7E (tax on deemed income) of the Income Tax Ordinance, 2001.
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