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Tag: Federal Board of Revenue

The Federal Board of Revenue is Pakistan’s apex tax agency, overseeing tax collection and policies. Pakistan Revenue is committed to providing timely updates on the Federal Board of Revenue to its readers.

  • Values of immovable properties may be enhanced to prevent money laundering

    Values of immovable properties may be enhanced to prevent money laundering

    KARACHI: Federal Board of Revenue (FBR) may increase valuation of immovable properties in order to prevent money laundering in the real estate sector.

    “In Pakistan the Real Estate sector is one of the biggest sources of money laundering and is used as a parking lot for untaxed as well as ill-gotten money,” the FBR said in an official note.

    The sources in FBR said that considering the lower valuation set by the FBR as compared with open market valuation, the FBR values may be enhanced further in future.

    Considering the real estate sector as parking lot for untaxed month, a wide range of steps had been taken to restructure the taxation of this sector.

    The various steps being taken are as under:-

    The Board has issued valuation tables of immovable properties in 21 major cities wherein such properties are valued at a value higher than the DC rates.

    The purchasers were required to pay 3 percent tax on the difference between the DC value and FBR value of property to explain the source of investment to the extent of differential between FBR value and DC value.

    The rates notified by the Board are still considerably lower than actual market value. It is therefore intended that FBR rates of immovable properties would be taken closer to or about 85 percent of actual market value.

    In addition, 3 percent tax for not explaining the source of investment was withdrawn.

    As the increase in FBR values of immovable property would increase the incidence of tax on genuine buyers and sellers, the rate of withholding tax on purchase of immovable property has been reduced from 2 percent to 1 percent.

    The withholding tax on purchase of property was attracted only if the value of property is more than four million rupees.

    The threshold of four million rupees was abolished and withholding tax on purchase is to be collected irrespective of the value of property.

    Previously, there was no withholding tax on sale of property if the property was held for a period of more than three years.

    Since capital gain is to be taxed under normal tax regime even beyond the period of three years, withholding tax on sale of property would be collected where the holding period is up to five years.

    The law imposed restriction on registration or transfer of property having fair market value exceeding rupees five million in the name of a non-filer. The aforesaid restriction placed on purchase of immovable property has been withdrawn.

  • FBR may obtain sales tax record of past six-years

    FBR may obtain sales tax record of past six-years

    ISLAMABAD: Federal Board of Revenue (FBR) may ask certain taxpayers to provide past six years record of their sales for examination, sources said.

    The sources said that the tax offices may conduct audit of sales tax of many taxpayers in order to meet revenue collection target for current fiscal year.

    The sources said that under Sales Tax Act, 1990 taxpayers are required to retain past six years record.

    A person, who is required to maintain any record or documents under Sales Tax Act, 1990 shall retain the record and documents for a period of six years after the end of the tax period to which such record or documents relate or till such further period the final decision in any proceedings including proceedings for assessment, appeal, revision, reference, petition and any proceedings before an alternative Dispute Resolution Committee is finalized.

    The sources said that the tax officials have immense powers to access to record and documents of taxpayers.

    (1) A person who is required to maintain any record or documents under this Sales Tax Act, 1990 or any other law shall, as and when required by Commissioner, produce record or documents which are in his possession or control or in the possession or control of his agent; and where such record or documents have been kept on electronic data, he shall allow access to the officer of Inland Revenue authorized by the Commissioner and use of any machine on which such data is kept.

    (2) The officer of Inland Revenue authorized by the Commissioner, on the basis of the record, obtained under sub-section (1), may, once in a year, conduct audit:

    Provided that in case the Commissioner has information or sufficient evidence showing that such registered person is involved in tax fraud or evasion of tax, he may authorize an officer of Inland Revenue, not below the rank of Assistant Commissioner, to conduct an inquiry or investigation under section 38:

    Provided further that nothing in this sub-section, shall bar the officer of Inland Revenue from conducting audit of the records of the registered person if the same were earlier audited by the office of the Auditor-General of Pakistan.

    (3) After completion of Audit under this section or any other provision of this Act, the officer of Inland Revenue may, after obtaining the registered person’s explanation on all the issues raised in the audit shall pass an order under section (11).

    (5) Notwithstanding the penalties prescribed in section 33, if a registered person wishes to deposit the amount of tax short paid or amount of tax evaded along with default surcharge voluntarily, whenever it comes to his notice, before receipt of notice of audit, no penalty shall be recovered from him:

    Provided if a registered person wishes to deposit the amount of tax short paid or amount of tax evaded along with default surcharge during the audit, or at any time before issuance of show cause notice … he may deposit the evaded amount of tax, default surcharge under section 34, and twenty five per cent of the penalty payable under section 33:

    Provided further that if a registered person wishes to deposit the amount of tax short paid or amount of tax evaded along with default surcharge after issuance of show cause notice, he shall deposit the evaded amount of tax, default surcharge under section 34, and full amount of the penalty payable under section 33 and thereafter, the show cause notice, shall stand abated.

    Explanation.– For the purpose of sections 25, 38, 38A, 38B and 45A and for removal of doubt, it is declared that the powers of the Board, Commissioner or officer of Inland Revenue under these sections are independent of the powers of the Board under section 72B and nothing contained in section 72B restricts the powers of the Board, Commissioner or Officer of Inland revenue to have access to premises, stocks, accounts, records, etc. under these sections or to conduct audit under these sections.

  • DGRM authorized to manage risk involved in customs clearance

    DGRM authorized to manage risk involved in customs clearance

    KARACHI: Directorate General of Risk Management (DGRM) has been authorized to manage risk involved in customs clearance of containerized, LCL and bulk cargo.

    The FBR on Wednesday issued SRO 101(I)/2020 to amend Customs Rules, 2001. Through the SRO the FBR issued Risk Management System Rules.

    It said that the DGRM to manage risk involved in customs clearance of containerized, LCL and bulk cargo including but not limited to transit cargo, international passengers and accompanied and unaccompanied baggage thereof including clearances against carnet-de-passage/TIR.

    The DG has also been authorized to plan, design and implement strategies by applying accredited risk management tools and techniques specific to each transaction types relating to imports, exports and transit of goods and clearance of international passengers.

    The DG shall also monitor, evaluate and review Risk Management System based on changing national and international trends and feedback from stakeholders.

    According to the SRO, the DG shall examine clearance patterns of various sectors and commodities to identify, analyze and evaluate risks, develop mitigation strategies and present the same to Risk Management Committee (RMC) for approval and implementation.

    The DG shall responsible to develop system whereby different stakeholders’ compliance levels are determined. Compliant stakeholders are facilitated in the system, it added.

    The DG shall coordinate with Directorate General of Intelligence and Investigation Customs (DG I&I) to get feedback in the structured format after completion of investigations of cases or studies undertaken by the DG I&I.

    The DG shall also coordinate with the Directorate General of Customs Valuation to develop checks and parameters for selection of cases requiring valuation scrutiny.

    It said that RMC shall be headed by a BS-21 officer of Customs preferably Director General RMS and shall comprise many BS-19 and BS-20 officers of Customs as may be notified by the FBR.

    According to the SRO, the meetings of RMC shall be convened at least once every month.

    The RMC shall perform the following key functions, namely:

    a. to review performance of the RMS;

    b. to review risk parameters and behavior of important risk indicators;

    c. to set benchmarks for interventions or interceptions focusing on targeting the risky consignments or entities; and

    d. to review major detections by the collectorates or directorates (I&)- Customs with respect to RMS.

  • FBR defines fair market value of immovable properties, motor vehicles

    FBR defines fair market value of immovable properties, motor vehicles

    KARACHI: Federal Board of Revenue (FBR) has defined fair market value of immovable properties and motor vehicles in case of undeclared assets identified.

    FBR officials said that the valuation of immovable property for the purposes of section 111 of Income Tax Ordinance, 2001 related to undisclosed assets shall be taken to be-

    (a) the fair market value of immovable property shall be the value notified by the Board under sub-section (4) of section 68, in respect of area or areas specified in the said notifications;

    (b) if the fair market value of any immovable property of any area or areas has not been determined by the Board in the notification referred to in sub-section (4) of section 68, the fair market value of such immovable property shall be deemed to be the value fixed by the District Officer (Revenue) or provincial or any other authority authorized in this behalf for the purposes of stamp duty; and

    (c) in the case of agricultural land, the value shall be equal to the average sale price of the sales recorded in the revenue record of the estate in which the land is situated for the relevant period or time;

    (d) if in a case sale price recorded in the instrument of sale of any property is higher than the fair market value as determined under clauses (a), (b) and (c), the applicable price shall be higher of the two; and

    (e) in the case of sale price of any auctioned property or the fair market value as determined under clauses (a), (b) and (c), the higher price shall be applicable.

    (2) For the purposes of section 111 and subject to sub-rule (2), the value of motor cars and jeeps shall be determined in the following manner, namely:-

    (a) the value of the new imported car or jeep shall be the C.I.F. value of such car or the jeep, as the case may be, plus the amount of all charges, customs-duty, sales tax, levies, octroi fees and other duties and taxes leviable thereon and the costs incurred till its registration;

    (b) the value of a new car or jeep purchased from the manufacturer or assembler or dealer in Pakistan, shall be the price paid by the purchaser, including the amount of all charges, customs-duty, sales tax and other taxes, levies, octroi, fees and all other duties and taxes leviable thereon and the costs incurred till its registration;

    (c) the value of used car or jeep imported into Pakistan shall be the import price adopted by the customs authorities for the purposes of levy of customs-duty plus freight, insurance and all other charges, sales tax, levies octroi, fees and other duties and taxes leviable thereon and the costs incurred till its registration;

    (d) the value of a car or jeep specified in clause (a), (b) and (c) at the time of its acquisition shall be the value computed in the manner specified in the clause (a), (b) or (c), as the case may be, as reduced by a sum equal to ten percent of the said clause for each successive year, upto a maximum of five years; or

    (e) the value of a used car or jeep purchased by an assessee locally shall be taken to be the original cost of the car or the jeep determined in the manner specified in clause (a), (b) or (c), as the case may be, as reduced by an amount equal to ten percent for every year following the year in which it was imported or purchased from a manufacturer.

    (3) In no case shall the value be determined at an amount less than fifty percent of the value determined in accordance with clause (a), (b) or (c) or the purchase price whichever is more.

    (4) For the purposes of section 61, the value of any property donated to a non-profit organization shall be determined in the following manner, namely:-

    (a) the value of articles or goods imported into Pakistan shall be the value determined for the purposes of levy of customs duty and the amount of such duty and sales tax, levies, fees, octroi and other duties, taxes or charges leviable thereon and paid by the donor;

    (b) the value of articles and goods manufactured in Pakistan shall be the price as recorded in the purchase vouchers and the taxes, levies and charges leviable thereon and paid by the donor;

    (c) the value of articles and goods which have been previously used in Pakistan and in respect of which depreciation has been allowed, the written down value, on the relevant date as determined by the Commissioner;

    (d) the value of a motor vehicle shall be the value as determined in accordance with rule; and

    (e) the value of articles or goods other than those specified above, shall be the fair market value as determined by the Commissioner.

  • FBR starts enforcing NTN displaying at business premises

    FBR starts enforcing NTN displaying at business premises

    KARACHI: Federal Board of Revenue (FBR) has started enforcement dive to ensure displaying National Tax Number (NTN) at place of business.

    Sources in FBR said on Tuesday that the tax offices had started campaign to ensure displaying of NTN at place of the business.

    The tax authorities will imposed penalty of around Rs5000 on persons who fail to display the NTN at the place of business as required under Income Tax Ordinance, 2001.

    Section 181C of Income Tax Ordinance, 2001 explains the displaying of National Tax Number.

    Every person deriving income from business chargeable to tax, who has been issued a National Tax Number, shall display his National Tax Number at a conspicuous place at every place of his business.

  • FBR, Iranian customs sign agreement for electronic data exchange

    FBR, Iranian customs sign agreement for electronic data exchange

    ISLAMABAD: Federal Board of Revenue (FBR) and Iranian Customs authorities on Monday signed an agreement for Electronic Exchange of Data.

    The signing ceremony was chaired by Member (Customs-Policy/Operation), FBR Muhammad Javed Ghani, and subsequently presided over by the acting Chairperson, FBR, Nausheen Javaid Amjad.

    The Customs Mutual Assistance Agreement was signed between the Government of the Islamic Republic of Iran and the Islamic Republic of Pakistan on March 04, 2004.

    In light of the said agreement, it was felt imperative by FBR to make progress on a number of important areas for protecting economic interests of Pakistan involved in bilateral trade between Iran and Pakistan.

    Under the agreement, it was decided to finalize of the MoU on Electronic Data Exchange between Pakistan Customs and Iran Customs.

    It was also emphasized to exchange values or documents on real time basis in case of the goods to be imported or exported and to roll-out a fully automated clearance system having advance information about goods and passengers at Taftan – Mirjaveh Border stations (as a pilot project) and at other border stations in a phased manner.

    To this effect, the Iranian customs authorities were approached and meetings were held on February 18-20, 2019 and October 16-17, 2019.

    In the last meeting, on October 16-17, 2019 milestones were achieved and consensus was developed on the areas as listed in above Para.

    In furtherance of the subject matter, the Islamic Republic of Iran Customs Administration (IRICA) nominated, the Director General of Information Technology Department Mrs. Haideh Bagheripour to come over to Pakistan for signing the MoU on behalf of her Customs Administration.

    While welcoming the distinguished guests from Iran Customs, the Chairperson, FBR, Nausheen Javaid Amjad stated that implementation of this MoU will have a number of benefits for both Iran Customs and Federal Board of Revenue such as availability of advance information about values, descriptions and quality of the goods to be imported into Pakistan from Iran and reduced costs on clearance of goods at the borders. Moreover, accurate valuation of the imported goods will lead to realization of greater revenues, she said.

    Member (Customs-Policy), Muhammad Javed Ghani, while speaking on the occasion, warmly welcomed the esteemed guests from Iran Customs on their visit to Pakistan.

    He said the proposed cooperation through the Memorandum of Understanding would go a long way in fostering a long-term relationship between both customs administrations and would enable them to successfully cope with the challenges that they were facing.

    According to him, implementation of this MoU would ensure optimum trade facilitation through quick examination /assessment of the imported goods and more transparency and lesser human interface.

    He assured Iran customs of full cooperation from Pakistan Customs on any area pertaining to mutual assistance and collaboration.

    Ambassador of Iran in Pakistan, Mohammad Ali Hosseini, was also present on the occasion.
    He has conveyed felicitations to all the present officers of Federal Board of Revenue and appreciated both customs administrations for working untiringly to reach the consensus on the provisions of MoU and, finally, converging to sign it.

    He expressed his pleasure over the fact that there were a number of important areas wherein both customs administrations could work together in the best interests of Iran and Pakistan.

    After signing of MoU, the instrument was exchanged between relevant officers of Iran Customs and Federal Board of Revenue.

  • FBR notifies transfer, postings of BS-20 IRS officers

    FBR notifies transfer, postings of BS-20 IRS officers

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday notified transfers and postings of senior officers of Inland Revenue Service (IRS) of BS-20 with immediate effect and until further orders.

    The FBR notified transfers and postings of following officers:

    01. Rizwan Ahmed Urfi (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (PAC-DT) Federal Board of Revenue (Hq), Islamabad from the post of Chief, Federal Board of Revenue (Hq), Islamabad.

    02. Sheikh Zahid Masood (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (Enforcement) (IR-Operations Wing) Federal Board of Revenue (Hq), Islamabad from the post of Chief, Federal Board of Revenue (Hq), Islamabad.

    03. Muhammad Asghar Khan Niazi (Inland Revenue Service/BS-20) has been transferred and posted as Commissioner Inland Revenue (Bahawalpur Zone) Regional Tax Office, Bahawalpur from the post of Commissioner-IR, (Rahimyar Khan Zone) Regional Tax Office, Bahawalpur. The officer is assigned the additional charge of the post of CIR (Rahimyar Khan Zone), RTO, Bahawalpur till the posting of a regular incumbent.

    04. Masood Akhtar (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (Legal Wing) Federal Board of Revenue (Hq), Islamabad from the post of Commissioner-IR, (Bahawalpur Zone) Regional Tax Office, Bahawalpur.

    05. Mohy ud Din Ismail (Inland Revenue Service/BS-20) has been transferred and posted as Chief, (ST &FE) (IR-Policy Wing) Federal Board of Revenue (Hq), Islamabad from the post of Chief, (Legal) Federal Board of Revenue (Hq), Islamabad.

    The FBR said that the officers who are drawing performance allowance prior to issuance of this notification shall continue to draw this allowance on the new place of posting.

  • FBR to impose penalty on withholding agent for not submitting taxpayers’ information

    FBR to impose penalty on withholding agent for not submitting taxpayers’ information

    ISLAMABAD: Federal Board of Revenue (FBR) will impose penalty on withholding agents for failure in submitting withholding statement or information of taxpayers for the period July – December 2019.

    The last day for filing withholding statement electronically was January 31, 2020. Most of the withholding agents had filed the statements as per requirement. However, some of them are still non-compliant and will be liable to fine and penalty, FBR sources said on Monday.

    As per Section 182 of Income Tax Ordinance, 2001, where any person fails to furnish a statement as required under Section 115, 165, 165A of 165B within the due date. “Such person shall pay a penalty of Rs5,000 if the person had already paid the tax collected or withheld by him within the due date for payment and the statement is filed within 90 days from the due date for filing the statement and, in all other cases, a penalty of Rs2,500 for each day of default from the due date subject to a minimum penalty of Rs10,000.”

    The FBR officials said that under Section 165 of the Income Tax Ordinance, 2001, every person collecting tax or deducting tax from a payment shall furnish to the commission a biannual statement in the prescribed form setting out:

    (a) the name, Computerized National Identity Card Number, National Tax Number and address of each person from whom tax has been collected under Division II of this Part or Chapter XII or the Tenth Schedule or to whom payments have been made from which tax has been deducted under Division III of this Part or Chapter XII or the Tenth Schedule in each half-year

    (b) the total amount of payments made to a person from which tax has been deducted under Division III of this Part or Chapter XII or the Tenth Schedule in each half-year

    (c) the total amount of tax collected from a person under Division II of this Part or Chapter XII or the Tenth Schedule or deducted from payments made to a person under Division III of this Part or Chapter XII or the Tenth Schedule in each half-year; and

    (d) such other particulars as may be prescribed:

    Provided that every person as provided in sub-section (1) shall be required to file withholding statement even where no withholding tax is collected or deducted during the period.

    Explanation.— For the removal of doubt, it is clarified that this sub-section overrides all conflicting provisions contained in the Protection of Economic Reforms Act, 1992 (XII of 1992), the Banking Companies Ordinance, 1962 (LVII of 1962), the Foreign Exchange Regulation Act, 1947 (VII of 1947) and the regulations made under the State Bank of Pakistan Act, 1956 (XXXIII of 1956), if any, on the subject, in so far as divulgence of information under section 165 is concerned.

    (2) Every prescribed person collecting tax under Division II of this Part or Chapter Xll or the Tenth Schedule or deducting tax under Division III of this Part of Chapter Xll or the Tenth Schedule shall furnish statements under sub-section (l) as per the following schedule, namely:-

    (a) in respect of the half-year ending on the 30th June, on or before the 31st day of July; and

    (b) in respect of the half-year ending on the 31st December, on or before the 31st day of January.

    (2A) Any person who, having furnished statement under sub-section (1) or sub-section (2), discovers any omission or wrong statement therein, may file a revised statement within sixty days of filing of statement under sub-section (1) or sub-section (2), as the case may be.

    (2B) Notwithstanding anything contained in this section, the Commissioner as he deems lit may by notice in writing require any person, collecting or deducting tax under this Ordinance, to furnish a statement for any period specified in the notice within such period of time as may be specified in the notice.

    (3) Board may prescribe a statement requiring any person to furnish information in respect of any transactions in the prescribed form and verified in the prescribed manner.

    (4) A person required to furnish a statement under sub-section (1), may apply in writing, to the Commissioner for an extension of time to furnish the statement after the due date and the Commissioner if satisfied that a reasonable cause exists for non-furnishing of the statement by the due date may, by an order in writing, grant the applicant an extension of time to furnish the statement.

    (5) The Board may make rules relating to electronic furnishing of statements under this section including,-

    (a) mandatory electronic filing of statements; and

    (b) determination of eligibility of the data of such statements and e-intermediaries, etc.

    (6) Every person deducting tax from payment under section 149 shall furnish to the Commissioner an annual statement in the prescribed form and manner.

  • Criminal proceedings to be initiated for taking bribe

    Criminal proceedings to be initiated for taking bribe

    KARACHI: Federal Board of Revenue (FBR) is determined to eliminate corrupt practices in the official matters in Inland Revenue and Pakistan Customs and decided to take action against officials taking bribe or financial benefits for giving favor someone.

    FBR officials told PkRevenue.com that vigilance teams of tax authorities were observing the day to day affairs of field offices and also examining complaints against tax officials regarding their workings.

    In order to effectively check misuse of authority to gain financial benefit, new provisions have been introduced through Finance Act, 2019 in all the relevant statutes to prescribe rules for initiating criminal proceedings against officers and officials of the FBR who deliberately commit acts or fail to act for personal benefits.

    Similar action would also be taken against persons who offer bribes or other financial benefits to the tax employees, the sources said.

    The laws have been introduced through Section 156A Customs Act, 1969, Section 33A Sales Tax Act, 1990 and Section 216A Income Tax Ordinance, 2001 for taking against corrupt practices of officials.

    Under Section 216A of Income Tax Ordinance, Proceedings against authority and persons shall be taken as under.

    (1) Subject to section 227, the Board shall prescribe rules for initiating criminal proceedings against any authority mentioned in section 207 and officer of the Directorates General mentioned in Part II and Part III of Chapter XI including any person subordinate to the aforesaid authorities or officers of the

    Directorates General who willfully and deliberately commits or omits an act which results in undue benefit or advantage to the authority or the officer or official or to any other person.

    (2) Where proceedings under sub-section (1) have been initiated against the authority or officer or official, the Board shall simultaneously intimate the relevant Government agency to initiate criminal proceedings against the person referred to in sub-section (1).

    (3) The proceedings under this section shall be without prejudice to any other liability that the authority or officer or official or the person may incur under any other law for the time being in force.

  • Tax collection from salary of executives, directors jumps up by 85%

    Tax collection from salary of executives, directors jumps up by 85%

    KARACHI: The collection of income tax has registered sharp growth of 85 percent on salary received by executives/directors of companies.

    The unprecedented growth has been witnessed due to changes in salary tax slabs introduced through Finance Act, 2019.

    The collection of income tax has increased to Rs3.1 billion during first seven months (July – January) 2019/2020 as compared with Rs1.667 billion in the same period of the last fiscal year.

    Sources in Large Taxpayers Unit (LTU) Karachi, a collecting office of Federal Board of Revenue (FBR), said that the higher tax rates on the salary income received by executives and directors of companies revised through the Finance Act, 2019 resulted in improved tax revenue under this head.

    They said that the tax slab was increased to 35 percent on the salary income above Rs75 million.

    The tax officials also attributed the increase in tax revenue to effective monitoring and audit of executives /directors of companies.

    They said that previously directors of companies avoid taxes by taking advantage of tax laws.

    The salary income has been explained in section 12 of Income Tax Ordinance, 2001.

    Salary.— (1) Any salary received by an employee in a tax year, other than salary that is exempt from tax under this Ordinance, shall be chargeable to tax in that year under the head “Salary”.

    (2) Salary means any amount received by an employee from any employment, whether of a revenue or capital nature, including —

    (a) any pay, wages or other remuneration provided to an employee, including leave pay, payment in lieu of leave, overtime payment, bonus, commission, fees, gratuity or work condition supplements (such as for unpleasant or dangerous working conditions);

    (b) any perquisite, whether convertible to money or not;

    (c) the amount of any allowance provided by an employer to an employee including a cost of living, subsistence, rent, utilities, education, entertainment or travel allowance, but shall not include any allowance solely expended in the performance of the employee’s duties of employment;

    (d) the amount of any expenditure incurred by an employee that is paid or reimbursed by the employer, other than expenditure incurred on behalf of the employer in the performance of the employee’s duties of employment;

    (e) the amount of any profits in lieu of, or in addition to, salary or wages, including any amount received —

    (i) as consideration for a person’s agreement to enter into an employment relationship;

    (ii) as consideration for an employee’s agreement to any conditions of employment or any changes to the employee’s conditions of employment;

    (iii) on termination of employment, whether paid voluntarily or under an agreement, including any compensation for redundancy or loss of employment and golden handshake payments;

    (iv) from a provident or other fund, to the extent to which the amount is not a repayment of contributions made by the employee to the fund in respect of which the employee was not entitled to a deduction; and

    (v) as consideration for an employee’s agreement to a restrictive covenant in respect of any past, present or prospective employment;

    (f) any pension or annuity, or any supplement to a pension or annuity; and

    (g) any amount chargeable to tax as “Salary” under section 14.

    (3) Where an employer agrees to pay the tax chargeable on an employee’s salary, the amount of the employee’s income chargeable under the head “Salary” shall be grossed up by the amount of tax payable by the employer.

    (4) No deduction shall be allowed for any expenditure incurred by an employee in deriving amounts chargeable to tax under the head “Salary”.

    (5) For the purposes of this Ordinance, an amount or perquisite shall be treated as received by an employee from any employment regardless of whether the amount or perquisite is paid or provided —

    (a) by the employee’s employer, an associate of the employer, or by a third party under an arrangement with the employer or an associate of the employer;

    (b) by a past employer or a prospective employer; or

    (c) to the employee or to an associate of the employee or to a third party under an agreement with the employee or an associate of the employee.