Very short Questions and Answers
1. Mention any two decisions that are subject to review by IRD.
The administrative review may be conducted on the following decisions:
- a personal ruling issued by the Inland Revenue Department,
- a decision of the department in respect of undeposited or under deposited tax and interest thereon.
2. Show your acquaintance with an appeal to reveal to the tribunal.
A person (the appellant) who is aggrieved by a decision on an objection may appeal to the Revenue Tribunal in accordance with the Revenue Tribunal Act, 2031. The appellant should file a copy of the notice of appeal with the Department within 15 days of doing so.
However, the enforcement of a decision on an objection decision does not stay or otherwise affected by an appeal. If the Director-General of the Department has made the decision relating to administrative review, the appeal to Revenue Tribunal would be effective.
Short Questions and Answers
1. What is an administrative review? List out any five decisions subject to administrative review.
An administrative review is a review of decisions made by the Inland Revenue Department (IRD) so as to correct mistakes made by the tax administration internally.
The five decisions subject to administrative review are:
- a personal ruling issued by the department,
- a decision of the department in respect of undeposited or under deposited tax and interest thereon,
- an estimate by the department or the decision to make an estimate of a person’s estimated tax payable,
- a decision by the department to require a person to file a return of income,
- a decision by the department on an application by a person to extend the due date by which the person must file a return.
2. Explain the procedure to file an appeal to the revenue tribunal.
A person (the appellant) who is aggrieved by a decision on an objection may appeal to the Revenue Tribunal in accordance with the Revenue Tribunal Act, 2031. The appellant should file a copy of the notice of appeal with the Department within 15 days of doing so.
However, the enforcement of a decision on an objection decision does not stay or otherwise affected by an appeal. If the Director-General of the Department has made the decision relating to administrative review, the appeal to Revenue Tribunal would be effective.
3. Briefly describe the procedure of filing an objection to a reviewable decision.
A taxpayer who does not agree with the reviewable decision made by a tax officer may file in writing an objection to the decision with the IRD. The objection should be filed within 30 days after the decision is made specifying in detail the grounds upon which it is made. The applicant should pay the full amount of undisputed tax plus one-third of the disputed tax to file the objection. If a taxpayer cannot file such an objection within this time, he can make an application for an extension of the time (within 7 days). In such cases, the Department may, where the reasonable cause is shown, extend for a period not exceeding 30 days the date by which an objection must be filed and will notify the person in writing of the Department’s decision on the application.
After consideration of a person’s objection filed, the Department may allow or disallow the objection in whole or part. The Department is required to notify the person in writing of the decision on an objection.
If the Department fails to notify the person in writing of the decision on an objection b within 60 days of an objection being filed, the person may treat the Department as having made a decision to disallow the objection. A person is required to notify the Department in writing of the matter of having treated the objection as disallowed. The Department is treated as having disallowed the objection and served the person with notice to that effect on the day that the notification is filed with the Department.