CHIEF COMMISSIONER

An officer of Inland Revenue including a Regional Commissioner of Income Tax and a Director General of Income Tax and Sales Tax may be appointed on this post and will be known as Chief Commissioner Inland Revenue.

COMPANY

According to the Income Tax Ordinance, 2001, ‘company’ means:

(i) a company as defined in the Companies Ordinance, 1984,

(ii) a body corporate formed by or under any law in force in Pakistan,

(ii) a modaraba,

(iv) a body incorporated by or under the law of a country outside Pakistan relating to incorporation of companies, a trust, a cooperative society or a finance society or any other society established under law,

(vi) a foreign association whether incorporated or not, which the Board has declared to be a company,

(vii) a provincial government; (vii) a local authority in Pakistan, or

(ix) a Small Company

Explanation

In our country, there are three popular forms of business organizations sole proprietorship, partnership and company The company is created by law and so has a distinct legal entity. For the purpose of tax, a company is treated to be a separate business entity apart from its shareholders. The assets possessed, or liabilities owned by a company are its own, and legally the shareholders are not responsible for any liabilities Company pays the tax in discharge of its own liability and not on behalf of its shareholders or as their agent

It must be noted that any foreign body, even if it is an uncorporated association, can be declared as company by the Board and will be taxed Dfa Ho as such A foreign association can neither object to such an order nor it can claim as a right that it should be declared a company. It is on the sole discretion of the Board whether or not to declare a foreign association as a company