Did you know that in terms of the enactments, a taxpayer has a remedy to object and appeal to an assessment which he deems is not fair to him. It is common for taxpayers to receive tax assessments from the Zimbabwe Revenue Authority (ZIMRA) and be asked by the tax authority to pay the outstanding tax as assessed. The assessment may be based on estimates or certain piece of legislation which may not be applicable to the taxpayer.
The Right of a Taxpayer to object.
A Taxpayer, who is aggravated, with an assessment, have a right to object to assessments and certain decisions issued by the Commissioner. The 11th Schedule of the Income Tax Act gives the decisions to which a person can object to. The following legislation is available to the taxpayer:
- Section 62 a.r.w the 11thSchedule of the Income Tax Act.
- Section 32 of the Value Added Tax Act.
- Section 25 of the Capital Gains Tax Act.
How to lodge an objection?
Any taxpayer aggrieved by the decision of the Commissioner may object or appeal against an assessment, decision or determination.
- Lodge within 30 days
- In writing
- Clearly state grounds of objection
- Objection considered disallowed if Commissioner fails to make decision within 3 months. Taxpayer can then take the case to Court.
- Objection disallowed then can appeal to Court (21 days notification of appeal; 60 days appellant case).
How ZIMRA deals with an objection from client?
Upon receipt of a notice of objection to an assessment, a decision or the determination of a reduction of tax the Commissioner—
- May reduce or alter the assessment, alter the decision or, as the case may be, increase or alter the reduction or may disallow the objection; and
- Shall send the person upon whom the assessment has been made or to whom the decision has been conveyed or, as the case may be, to whom the reduction has been allowed, notice of the reduction, increase, alteration or disallowance.
- Taxes legislation provides that a decision to an objection has to be done within three months (90 days) after receiving the notice of objection.
- Where a determination is not received within 90 days the objection is deemed to have been disallowed.
Why Taxpayers need to object?
- it is their right to do so.
- provides fair hearing regarding particular tax issues which they need recourse on.
- can reduce tax burden position of the aggrieved party.
Rights of a client to Appeal against decision.
If aggravated Taxpayer is not happy with the decision made by the commissioner, the client may seek redress though the High Court and Supreme Court. If a client is not happy with the determination of his/her objection, they can lodge an appeal in terms of the following sections of the Acts:
- Section 65 of the Income Tax Act, appeal at Special Court or High Court.
- Section 33 of the Value Added Tax Act appeal at Fiscal Appeals Court.
- Section 25 of the Capital Gains Act appeal at Special Court or High Court.
If the taxpayer is aggrieved by the lower court’s decision they have the right to appeal at the highest court which is the Supreme Court in terms of Section 66 of the Income Tax Act, Section 34 of VAT Act.
