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The Supreme Court of Pakistan ruled in the case of Messrs Chawala Footwear v. Commissioner Inland Revenue regarding the lawful triggering of withholding tax default under Section 161. The court clarified that once the objective threshold is met, the notice is valid, and the burden shifts to the taxpayer to prove no default occurred. Key risks for businesses include non-deduction of tax without documentation and weak reconciliation of payments.

Author

Ahsan Ali Javed

Language

EN