In the previous article in this series, we considered what happens when a taxpayer receives an assessment from the Department of Inland Revenue (DIR) and is prepared to pay it. This article explains what a taxpayer must do when disputing an assessment.
As previously discussed in When Might the DIR Issue a VAT Assessment? , the Comptroller may issue a VAT assessment in circumstances including where:
There is reason to believe that a person will become liable to pay VAT but is unlikely to do so.
The DIR establishes the taxpayer’s liability by issuing a Notice of Assessment.
A taxpayer who disagrees with an assessment may challenge it by lodging a written Notice of Objection with the Comptroller.
A Notice of Objection must be lodged within 30 days after the date of service of the Comptroller’s Notice of Assessment.
This deadline is critical. However strong the taxpayer’s case may be, failing to file a valid objection on time may eliminate the right to challenge the assessment.
[Download a PDF version of this article here, Disagree with the DIR's Notice of Assessment? File Your Objection on Time]
The Comptroller may accept a late objection if satisfied that the taxpayer did not unreasonably delay filing it. A taxpayer filing outside the 30-day period should therefore explain the delay fully and provide a reasonable basis for it.
A taxpayer who fails to object to an appealable decision may have no further right of objection or appeal under the Value Added Tax Act.
The Notice of Objection must:
The objection should be prepared carefully, with the relevant legal arguments and supporting evidence clearly presented. The grounds on which the objection is made must be specified in detail. Also, where it is an objection to a tax assessment, it must be accompanied by payment of the amount assessed or security for the equivalent amount in a form acceptable to the Comptroller.
The Comptroller must consider the objection within 90 calendar days after it is lodged and may:
The Comptroller’s decision must be given in writing.
If the Comptroller does not determine the objection within 90 calendar days, the taxpayer may appeal to the Tax Appeal Commission as though the objection had been disallowed.
If the Comptroller issues a decision within the 90-day period but the taxpayer remains dissatisfied, the taxpayer may also appeal that decision to the Tax Appeal Commission. A taxpayer's failure to do so is fatal and results in no further right of objection or appeal under the statute.
In the next article in this series, we examine how a taxpayer may appeal if the DIR remains unrepentant and upholds its assessment in whole or in part.
Authors
Download a PDF version of this article here, Disagree with the DIR's Notice of Assessment? File Your Objection on Time
This article is intended for general informationonly and does not constitute legal advice. Specific issues and queries shouldbe discussed with qualified counsel.
In the previous article in this series, we considered what happens when a taxpayer receives an assessment from the Department of Inland Revenue (DIR) and is prepared to pay it. This article explains what a taxpayer must do when disputing an assessment.
As previously discussed in When Might the DIR Issue a VAT Assessment? , the Comptroller may issue a VAT assessment in circumstances including where:
There is reason to believe that a person will become liable to pay VAT but is unlikely to do so.
The DIR establishes the taxpayer’s liability by issuing a Notice of Assessment.
A taxpayer who disagrees with an assessment may challenge it by lodging a written Notice of Objection with the Comptroller.
A Notice of Objection must be lodged within 30 days after the date of service of the Comptroller’s Notice of Assessment.
This deadline is critical. However strong the taxpayer’s case may be, failing to file a valid objection on time may eliminate the right to challenge the assessment.
[Download a PDF version of this article here, Disagree with the DIR's Notice of Assessment? File Your Objection on Time]
The Comptroller may accept a late objection if satisfied that the taxpayer did not unreasonably delay filing it. A taxpayer filing outside the 30-day period should therefore explain the delay fully and provide a reasonable basis for it.
A taxpayer who fails to object to an appealable decision may have no further right of objection or appeal under the Value Added Tax Act.
The Notice of Objection must:
The objection should be prepared carefully, with the relevant legal arguments and supporting evidence clearly presented. The grounds on which the objection is made must be specified in detail. Also, where it is an objection to a tax assessment, it must be accompanied by payment of the amount assessed or security for the equivalent amount in a form acceptable to the Comptroller.
The Comptroller must consider the objection within 90 calendar days after it is lodged and may:
The Comptroller’s decision must be given in writing.
If the Comptroller does not determine the objection within 90 calendar days, the taxpayer may appeal to the Tax Appeal Commission as though the objection had been disallowed.
If the Comptroller issues a decision within the 90-day period but the taxpayer remains dissatisfied, the taxpayer may also appeal that decision to the Tax Appeal Commission. A taxpayer's failure to do so is fatal and results in no further right of objection or appeal under the statute.
In the next article in this series, we examine how a taxpayer may appeal if the DIR remains unrepentant and upholds its assessment in whole or in part.
Authors
Download a PDF version of this article here, Disagree with the DIR's Notice of Assessment? File Your Objection on Time
This article is intended for general informationonly and does not constitute legal advice. Specific issues and queries shouldbe discussed with qualified counsel.
In the previous article in this series, we considered what happens when a taxpayer receives an assessment from the Department of Inland Revenue (DIR) and is prepared to pay it. This article explains what a taxpayer must do when disputing an assessment.
As previously discussed in When Might the DIR Issue a VAT Assessment? , the Comptroller may issue a VAT assessment in circumstances including where:
There is reason to believe that a person will become liable to pay VAT but is unlikely to do so.
The DIR establishes the taxpayer’s liability by issuing a Notice of Assessment.
A taxpayer who disagrees with an assessment may challenge it by lodging a written Notice of Objection with the Comptroller.
A Notice of Objection must be lodged within 30 days after the date of service of the Comptroller’s Notice of Assessment.
This deadline is critical. However strong the taxpayer’s case may be, failing to file a valid objection on time may eliminate the right to challenge the assessment.
[Download a PDF version of this article here, Disagree with the DIR's Notice of Assessment? File Your Objection on Time]
The Comptroller may accept a late objection if satisfied that the taxpayer did not unreasonably delay filing it. A taxpayer filing outside the 30-day period should therefore explain the delay fully and provide a reasonable basis for it.
A taxpayer who fails to object to an appealable decision may have no further right of objection or appeal under the Value Added Tax Act.
The Notice of Objection must:
The objection should be prepared carefully, with the relevant legal arguments and supporting evidence clearly presented. The grounds on which the objection is made must be specified in detail. Also, where it is an objection to a tax assessment, it must be accompanied by payment of the amount assessed or security for the equivalent amount in a form acceptable to the Comptroller.
The Comptroller must consider the objection within 90 calendar days after it is lodged and may:
The Comptroller’s decision must be given in writing.
If the Comptroller does not determine the objection within 90 calendar days, the taxpayer may appeal to the Tax Appeal Commission as though the objection had been disallowed.
If the Comptroller issues a decision within the 90-day period but the taxpayer remains dissatisfied, the taxpayer may also appeal that decision to the Tax Appeal Commission. A taxpayer's failure to do so is fatal and results in no further right of objection or appeal under the statute.
In the next article in this series, we examine how a taxpayer may appeal if the DIR remains unrepentant and upholds its assessment in whole or in part.
Authors
Download a PDF version of this article here, Disagree with the DIR's Notice of Assessment? File Your Objection on Time
This article is intended for general informationonly and does not constitute legal advice. Specific issues and queries shouldbe discussed with qualified counsel.
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