FIN623 Taxation Management Assignment 1 Spring 2011

[Xpert]

Soluion 1:

Resident Company.
As PSO Ltd. is incorporated under the Companies Ordinance, 1984 of Pakistan, so it will be considered resident company.

Solution 2:

Agricultural income Canada in Taxable.
Reason:
Any agricultural income from land, situated outside the Pakistan, is taxable.

Poultry Farm income is Taxable.
Reason:
Any income derived from Poultry farming is not considered exempt from tax.


Forfeited deposit against the contract for sale of flat is Taxable.
Reason:
Any forfeited deposits under the sale of land or building is considered as rent. And it is chargeable to tax under the head “Income from Property”.



Another Solution

[FONT=&quot]Answer Case#1:[/FONT]
in the case one according to the Control and management of the affairs is resident company because its control
is was in pakistan but partly in Saudi Arabia and its more shares are posessed by the federal government of
pakistan.
[FONT=&quot]Aswer Case#2:[/FONT]
1. this is exempted from tax because it is foriegn source of income.
2. This is the gross amount but the tax is on the net amount
3. This also taxable.