Tax Appeal Procedures in Ethiopia

Abstract

No matter how good a tax system might be, disputes between the Tax Authority and the taxpayers are unavoidable, and this necessitates putting in place legal and institutional frameworks that regulate such disputes and give adequate remedies to aggrieved taxpayers. Since the 1940s, Ethiopia’s tax laws embodied provisions on tax appeal procedures with a view to providing for the right of taxpayers to be heard. The same is true with the current tax laws of the country. The current tax appeal procedures include the Review Committee under the auspices of the Tax Authority. However, the accountability of this organ to the Tax Authority renders its neutrality and impartiality questionable. Moreover, the powers accorded to this organ are confined to tax assessment issues. Another challenge encountered by a taxpayer in the course of using this forum is the requirement to lodge complaints against a contested tax assessment within ten days from the reception of notice of assessment. This...