Retrospective tax penalties are ‘unlawful’: Supreme Court
• Says sanctions under ITO 2001 cannot apply to assessments governed by repealed law • Settles conflict between two previous rulings ISLAMABAD: The Supreme Court on Monday ruled that penalties imposed under the Income Tax Ordinance (ITO) 2001 for assessments completed before June 30, 2002 were illegal and legally unsustainable, emphasising that such penalties could not be applied retrospectively.…
The Supreme Court has declared penalties under the Income Tax Ordinance (ITO) 2001 to be unlawful and legally unsustainable, as they cannot be applied retrospectively. This decision settled a dispute between two previous rulings from 2009 and 2016. The court ruled that penalties imposed under Sections 182, 184, and 186 of the ITO 2001 were not lawful because there was no clear legislative language expressly granting retrospective effect to the provisions of the ITO 2001.
The penalties would only apply prospectively to the tax year in which the amendment was introduced, according to the court. The ruling has significant implications for taxpayers who received penalties under the aforementioned sections for assessments governed by the repealed ITO 1979.
Written by urgent.news from Dawn's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- Supreme Court orders Samsung Securities to pay damages to NPS over 2018 dividend error koreatimes.co.kr
- Retrospective tax penalties are ‘unlawful’: Supreme Court dawn.com
- Russia's Supreme Court bars anti-war party Yabloko from parliamentary elections euronews.com
- Supreme Court sceptical about binding SIR Tribunals to timeline; seeks disposal details thehindu.com
- Supreme Court orders Samsung Securities to pay damages to NPS over 2018 dividend error en.yna.co.kr
