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 Income
Tax Ordinance, 2001 |
| Group
Relief |
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| A new concept of Group Relief is being
introduced whereby the holding company can adjust the
current losses of its subsidiary company in a tax year
and subsequent two years against its profits provided
the holding company holds or acquires atleast 75% or more
of the share capital of the subsidiary company and does
not dispose of its holding to the extent of 75% for subsequent
five years. The subsidiary company is not required to
change the nature of its business during the same five
years. The subsidiary company will be allowed to carry
forward its unadjusted losses by the holding company after
three years. However, in case the holding company disposes
of its holdings in the subsidiary company then the benefit
of loss adjustment will be withdrawn and the holding company
will be taxed for the benefit derived in the year of disposal
of its holding. |
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© 2004, All Rights Reserved, RASG |
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Mr. Riaz Ahmed
