The Powers and Proceedings of the Review Departments in Tax Disputes: The Law and Practice of the Review Department in the Head Office and Large Taxpayers Branch Office
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Date
2022-12
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AAU
Abstract
Internal tax review system is a tax dispute settlement mechanism. As per the Ethiopian Tax administration system, it is a mandatory mechanism for a tax payer who objects a decision of a tax authority before a tax payer takes his/her case before the Tax Appeal Commission. The purpose of this thesis is to examine whether there are adequate rules for internal tax review mechanism and whether such rules are adhered by the internal review department and the practical challenges that the department faces. To this end the researcher employed qualitative research method and hence, analyzed the Tax Administration Proc. No,983/2016 and the Directive on internal tax review, Directive Number 171/2021 along with empirical data obtained from officers, lawyers, tax experts, by employing interview techniques and reviewing tax cases from the department. The thesis, therefore, argues that there are gaps in the Proclamation with regard to rules of evidence and cost of litigation before the department; gaps in the Directive with respect to composition of committee members, case handling, hearing and powers of the ministry. Also, the ministry did not establish well-functioning department. Both officers and taxpayers lack knowledge of internal tax review mechanism. Hence, the researcher recommends that legal reform measures on the gaps identified, conducting training and awareness creation for the Authority’s staffs and installing a suitable organizational structure and allocating adequate expert staffs are necessary for the proper functioning of the system.