The Income Tax Ordinance, 2001

 

 

 

Section

 

140.  Recovery of tax from persons holding money on behalf of a taxpayer.-

 

(1)    For the purpose of recovering any tax due by a taxpayer, the Commissioner may, by notice, in writing, require any person –  

 

(a)    owing or who may owe money to the taxpayer; or  

 

(b)    holding or who may hold money for, or on account of the taxpayer;  

 

(c)    holding or who may hold money on account of some other person for payment to the taxpayer; or  

 

(d)    having authority of some other person to pay money to the taxpayer,  

 

to pay to the Commissioner so much of the money as set out in the notice by the date set out in the notice.  

 

(2)    Subject to sub-section (3), the amount set out in a notice under sub-section (1) –  

 

(a)    where the amount of the money is equal to or less than the amount of tax due by the taxpayer, shall not exceed the amount of the money; or  

 

(b)    in any other case, shall be so much of the money as is sufficient to pay the amount of tax due by the taxpayer.  

 

(3)    Where a person is liable to make a series of payments (such as salary) to a taxpayer, a notice under sub-section (1) may specify an amount to be paid out of each payment until the amount of tax due by the taxpayer has been paid.  

 

(4)    The date for payment specified in a notice under sub-section (1) shall not be a date before the money becomes payable to the taxpayer or held on the taxpayer’s behalf.  

 

(5)    The provisions of sections 160, 161, 162 and 163, so far as may be, shall apply to an amount due under this section as if the amount were required to be deducted from a payment under Division III of Part V of this Chapter.  

 

(6)    Any person who has paid any amount in compliance with a notice under sub-section (1) shall be treated as having paid such amount under the authority of the taxpayer and the receipt of the Commissioner constitutes a good and sufficient discharge of the liability of such person to the taxpayer to the extent of the amount referred to in such receipt.  

 

Sub-Sections (7), (8) and (9) omitted by Finance Act, 2003 which previously read as follows :

 

(7)    Where an amount has been paid under sub-section (1), the taxpayer shall be allowed a tax credit for the amount (unless the amount paid represents a final tax on the taxpayer’s income) in computing the tax due by the taxpayer on the taxpayer’s taxable income for the tax year in which the amount was paid.  

 

(8)    The tax credit allowed under this section shall be applied in accordance with sub-section (3) of section 4.  

 

(9)    A tax credit or part of a tax credit allowed under this section for a tax year that is not able to be credited under sub-section (3) of section 4 for the year must be refunded to the taxpayer in accordance with section 170.  

 

(10)   In this section, "person" includes any Court, Tribunal or any other authority.