Very Short Questions and Answers
1. Write short notes on the defective documents.
A document issued as follows under this Act is not treated as defective:
- if it is in substance and effect in conformity with the Income Tax Act.
- if the person to whom the document is addressed is designated in it according to a common understanding
If the document issued by the Department contains a defect that does not involve a dispute as to the interpretation of the Act or facts involving a particular person, the Department may amend the document in order to rectify the defect.
2. Briefly state any two conditions that are not treated as violations of official secrecy.
Every officer of the Inland Revenue Department is required to keep secret all documents and information coming to the officer’s possession or knowledge in connection with the performance of duties under the Income Tax Act, 2058. However, an officer of the Department may disclose a document or information before the following persons in the following manner to the extent required in order to perform the officer’s duties under the Act: where required by a court or tribunal in relation to administrative review or proceedings with respect to a matter under the Act.
Short Questions and Answers
1. Briefly state any two conditions that are not treated as violations of official secrecy.
Every officer of the Inland Revenue Department is required to keep secret all documents and information coming to the officer’s possession or knowledge in connection with the performance of duties under the Income Tax Act, 2058. However, an officer of the Department may disclose a document or information before the following persons in the following manner to the extent required in order to perform the officer’s duties under the Act: where required by a court or tribunal in relation to administrative review or proceedings with respect to a matter under the Act;
2. Write a short note on the maintenance of documents.
Every taxpayer should maintain in Nepal documents of the type, form, and certification prescribed by the Inland Revenue Department including the following documents in Nepali or English language:
- documents that are necessary to explain information to be provided in a return or in any other document to be filed with the Department under this ITA, 2058.
- documents that enable an accurate determination of the tax liability of a person.
- documents that substantiate deductions and outgoings.
The Department may also give approval to the person to maintain the above-mentioned documents in electronic version.
3. In What circumstances, a document is considered sufficiently served?
A document to be served on a person under this Act is considered as sufficiently served in the following circumstances:
- sent to the electronic mail (e-mail) address or transmitted on a fax of a person.
- handed to the person or, in the case of an entity, a manager of the entity.
- left at or sent by post to the usual or last known place of abode, business, office, or other address of the person.
4. Briefly describe the form of documents to be maintained under ITA, 2058.
For the efficient administration of the ITA, 2058 the Inland Revenue Department may from time to time specify the form of documents. They will contain such information as is required by the Act, and the rules. The forms of the document specified by the Department are made available to the public at offices of the Department and at such other locations or by such other medium as the Department may determine. The Department may also specify any person to submit information, returns, or documents through electronic medium to the Department.
5. Briefly describe the provision related to the maintenance of documents
Every taxpayer should maintain in Nepal documents of the type, form and certification prescribed by the IRD including the following documents in Nepali or English language:
- documents that are necessary to explain information to be provided in a return or in any other document to be filed with the Department under this Act.
- documents that enable an accurate determination of the tax liability of a person.
- documents that substantiate deductions and outgoings.
The Department may also give approval to the person to maintain the above-mentioned documents in electronic version.
Unless the Department otherwise specifies by notice in writing, these documents should be retained for a period of five years from the end of the income year or years to which they are relevant. If these documents are not in the Nepali or English language, the Department may order in writing to the concerned person to get them translated into the Nepali language by an authorized, as per the prevailing law, translator at the person’s cost.
6. Write down the provisions regarding official secrecy as mentioned in Income Tax Act, 2058.
Every officer of the Inland Revenue Department is required to keep secret all documents and information coming into the officer’s possession or knowledge in connection with the performance of duties under the Act. However, an officer of the Department may disclose a document or information before the following persons in the following manner to the extent required in order to perform the officer’s duties under the Act; where required by a court or tribunal in relation to administrative review or proceedings with respect to a matter under the Act;
- to the Finance Minister;
- to any person where the disclosure is necessary for the purposes of any other fiscal law;
- to any person in the service of the Government of Nepal where who may require such disclosures for the performance of revenue or statistic related works;
- to the Auditor-General or any person authorized by the Auditor General where such en disclosure is necessary for the performance of official duties; or
- to the competent authority of the government of another country with which Nepal has entered into an international agreement, to the extent permitted under that agreement.
- Any person, court, tribunal, or authority receiving documents and information is required to keep them secret except to the minimum extent to which the disclosure is necessary.