Mr. Kashif Ahmad, a Pakistani National, left the Pakistani subsidiary of a multinational company and was employed
Question:
Mr. Kashif Ahmad, a Pakistani National, left the Pakistani subsidiary of a multinational company and was employed in the role of Commercial Director Middle East for the Group company with effect from January 1, 2007. Due to certain visa issues, he could not travel immediately and remained in Pakistan till February 28, 2007. While in Pakistan, he continued to work for the Middle East region and received payment from the Group company. Mr. Kashif is required to return to Pakistan for sorting out certain issues on behalf of the group company and will be staying in Pakistan for about two months. On his return to Pakistan, he will continue to be employed and paid by the Group company. The Group company deducts tax @ 20 % of the gross salary.
Required:
Briefly explain the Pakistan tax implications to Mr. Kashif for the tax years 2007 and 2008 in respect of the following:
(a) Salary earned while he was present in Pakistan from January 1, 2007, to February 28, 2007.
(b) If he returns to Pakistan before June 30, 2007.
(c) If he returns to Pakistan after June 30, 2007.
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso