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Estate in bankruptcy
(1) If a taxpayer is declared bankrupt, the tax liability under this Ordinance shall pass on to the estate in bankruptcy.
(2) If tax liability is incurred by an estate in bankruptcy, the tax shall be deemed to be a current expenditure in the operations of the estate in bankruptcy and shall be paid before the claims preferred by other creditors are settled.
(2) If tax liability is incurred by an estate in bankruptcy, the tax shall be deemed to be a current expenditure in the operations of the estate in bankruptcy and shall be paid before the claims preferred by other creditors are settled.
Amendment history (3)
- Inserted by the Finance Act, 2002.
- Added by the Finance Act, 2010.
- The expression “Companies Ordinance, 1984 (XLVII of 1984)” substituted by the Finance Act, 2021.
Amendment notes captured from the source page(s); they may include changes to neighbouring provisions.
Source FBR PDF page 292
Unofficial reference, compiled from the FBR’s consolidated Income Tax Ordinance 2001 (amended up to 30 June 2026). Provided for general information only — not an official FBR publication and not legal or tax advice. Always verify against the official FBR text before relying on it for filing or any decision.