Q.7 Mohsin has been working at the head office of Lewis Consulting, Inc. (LCI) situated in...

Q.7 Mohsin has been working at the head office of Lewis Consulting, Inc. (LCI) situated in New York, USA. On 1 January 20X8, LCI had established its branch office in Pakistan and had sent Mohsin for two years as Country Manager for looking after the Pakistan operations.
During the tax year 20X9, apart from salary income, Mohsin earned/received the following amounts:
• On 15 December 20X8, he conducted a seminar in USA for a fee of USD 18,000. On his request, the event manager transferred the amount (net of tax) directly to his personal bank account in Islamabad on 10 January 20X9.
• On 31 May 20X9, he earned income from his business established in USA and brought 40% of the income to Pakistan.
Required: Under the Income Tax Ordinance, 2001:
(i) State the residential status of Mohsin for the tax year 20X8. (02)
(ii) Discuss the taxability of his foreign source incomes for the tax year 20X9.

2008 2009 x

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