 |
|
For business information, annual reports, laws, ordinances, regulations and articles. |
|
|
ARTICLE 27
DIPLOMATIC AGENTS AND CONSULAR OFFICERS
Nothing in this convention shall affect the fiscal privileges of
diplomatic agents or consular officers under the general rules of international law or
under the provisions of special agreements.
130. Scope
The aim of the article is to protect the fiscal privilege acquired by diplomatic and
consular officials under the international law or international special agreement, from
the possible adverse effect of any of the provisions of the agreement. These officials are
not to receive less favourable treatment than that to which they are entitled to under the
international law or under the special agreements.
131. Privilege and fiscal privilege, meaning of
The word 'privilege' in its comprehensive sense means an advantage; a peculiar
advantage; a peculiar benefit; favour or advantage; a particular and peculiar benefit or
advantage enjoyed by a person, or company or class, beyond the common advantage of other
citizens; a favour granted; an option. Privilege
can be dispensation of a bounty, a conferment of a personal benefit or advantage, a
sanction of immunity or the grant of an exemption.
When once a privilege is granted, it ripens into a right.
Fiscal privilege means a fiscal advantage or a benefit enjoyed by a diplomatic or consular
official in derogation of common right, beyond the common advantage of other citizens. For
example, section 2 of the UN (Privileges and Immunity) Act, 1947 read with section 18,
clause (b) of article V of the Schedule thereto, inter alia, grants exemption from
taxation to salaries and emoluments paid by the United Nations to its officials. The
salary received from the UN is therefore, not to be taken taxable income. Though under the
Income Tax Ordinance, 1979 salary has been defined to include pension, the pension
received by the erstwhile employee. being citizen of Pakistan from the UN is not taxable
as salary income in Pakistan. No part of the
amount representing benefit to his children from the UN Joint Staff Pensions Fund, is
liable to be included in his total income.
132. Exemption of income of diplomatic personnel
Domestic laws of many countries provide for the retention of fiscal domicile by the
residents of a foreign country and so for the exclusion of their income from the
taxability net even if income arises both on account of the location of the source and the
physical presence of the concerned person in those countries. Under the Income Tax
Ordinance, 1979 remuneration received by a person as ambassador, high commissioner, envoy,
minister, charge’d affaires, commissioner, counsellor or the secretary, adviser or
attache of an embassy, high commission, legation or commission of a foreign State, or
received by him. as consul de carriere, or as a trade commissioner or any member of the
staff of any of these officials is not to be included in the income taxable in Pakistan. For its own citizens who have been
appointed to undertake the jobs of these aforesaid offices and also to do any other
services outside Pakistan the Income Tax Ordinance, 1979 provides that any allowance or
perquisites paid or allowed to them as such outside Pakistan by the Government is not to
be taken as taxable income.
By virtue of paragraph (1) of Article 4 the diplomatic agents and consular officers of a
State accredited to a Contracting State could be deemed resident of the former State who
are liable to taxation therein by virtue of his domicile. The domiciliatory status by
reason of the place of service does not get changed. For the same reason this is also true
of international organisation established in a Contracting State and their officials if
they derive certain fiscal advantage by virtue of the international treaty or agreement.
Thus, the convention or any of its provision does not whittle down any of the fiscal
privilege of diplomatic or consular officials under the general rules of international law
or under the provision of special agreements.
