An honorable judge ruled in Supreme Court’s judgment dated 28/7/2017 that since Mr Nawaz Sharif, the ex Prime Minister of Pakistan did not disclose his salary as chairman of a Dubai-based company, Capital FZE, in his declaration of assets before the election commission of Pakistan at the time of contesting election 2013, the Prime Minister stands disqualified for concealment of assets because the said salary constituted as an asset and concealment of asset is illegal. A question comes into my mind as how a salary which was never received by Mr. Nawaz Sharif from the Dubai-based company, referred to in the Supreme Court judgement be treated as an asset? The definition of a salary is “it is a fixed amount of money or compensation paid to an employee by an employer in return for work performed. Salary is commonly paid in fixed intervals, for example, monthly payments of one-twelfth of the annual salary. Nawaz Sharif neither performed any services nor received any compensation (salary) from the Dubai-based company. 

His appointment shown in the Dubai-based company as chairman was only an arrangement to a get visa and such practice is very common in Dubai . 

Therefore, it is difficult to understand how the Prime Minister concealed an asset from Election Commission of Pakistan at the time of contesting 2013 election? I would like add here that income tax is always paid on salary received and not salary accrued. Since Mr. Nawaz Sharif did not receive any salary from the Dubai-based company, he did not avoid any income tax. In a cash accounting practice, transactions are only recorded on the basis of cash receipts and cash payments. Here the above referred judgement of honorable Supreme Court implies that cash accounting is perhaps not acceptable whereas both the cash accounting as well as mercantile accounting are practiced legally in Pakistan throughout the world. I think the accounting and legal professionals of Pakistan will need to deliberate and debate more in days to come as to how a salary which was never been received can be treated as an asset as per decision dated 28/7/2017 of honorable Supreme Court of Pakistan. 


London, August 2.