Islamabad, Jan 3: The Pakistan Tax Bar Association (PTBA) has requested the formation of a larger bench under Rule 3(2) of the Appellate Tribunal Inland Revenue (ATIR) (Functions) Rules, 2023, to resolve conflicting rulings on foreign property income tax for Pakistani residents.
PTBA cited a 1997 precedent warning of “complications, confusion, and chaos” from conflicting decisions by benches of equal strength.
In a letter to the ATIR chairman, PTBA highlighted contradictions in rulings on whether rental income and capital gains from properties in the UAE and UK are taxable in Pakistan.
While the Lahore Registry ruled in 2022 and 2024 that such income is not taxable, the Islamabad Registry ruled in November 2022 that rental income from UAE properties is taxable.
PTBA hopes the larger bench will ensure consistent enforcement of tax policies and provide a permanent resolution.
