PROCLAMATION No. 233/2001
A PROCLAMATION TO PROVIDE FOR THE
ESTABLISHMENT OF THE FEDERAL
TAX APPEAL TRIBUNAL
WHEREAS, it has become necessary to establish an organ which examines and decides on appeals lodged by tax payers against the assessment of tax revenue which are designated by law for collection by the Federal Government;
NOW, THEREFORE, in accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is
hereby proclaimed as follows:
1. Short Title
This Proclamation may be cited as the “Federal Tax Appeal Tribunal Establishment Proclamation No. 233/2001”.
In this Proclamation:
1) “Tax” means any tax which is designated by law for collection by the Federal Government excluding stamp duty and taxes levied on import and export goods;
2) “Authority” means the Federal Inland Revenue Authority;
3) “Tribunal” means the Federal tax appeal tribunal;
4) “Person” means any natural of juridical person.
Tax Appeal Tribunal
1) The Federal Tax Appeal Tribunal /herein after referred to as “the Tribunal” /is hereby established as an autonomous public body of the Federal Government having its own legal personality.
2) The Tribunal shall be accountable to the Prime Minister.
4. Head Office
1) The tribunal shall have its head office in Addis Ababa and it may have branch offices in other places to be determined by the tribunal.
2) In the region where the tribunal is not established, the Tax Appeal Tribunal of the Region, in accordance with a delegation given to it by the tribunal shall have the additional power provided under Article 5 of this Proclamation.
The objective of the tribunal shall be to examine and decide on appeals lodged by the tax payers against tax assessment made by the Authority.
6. Powers and Duties of the Tribunal
Any tribunal established in accordance with this Proclamation shall have the following powers and duties:
1) to examine and decide on appeal cases referred to it pursuant to Article 10(2) (a) of this Proclamation;
2) to give order for the presentation of records or documents to any person to appear and give information necessary
for the determination of a case submitted to it;
3) to uphold, reduce, increase, or cancel and assessment made by the Authority as well as give further consequential order necessary for the final disposition of the case. However, the tribunal shall state, in its decision, the legal reasons for the reduction or cancellation of tax assessment made by the Authority;
4) The tribunal shall serve parties to the dispute with a copy of its decision.
7. Meetings of the Tribunal
1) There shall be a quorum where three of the members of the tribunal are present at its meeting.
2) The tribunal shall decide on appeal cases by a majority vote; in case of a tie, the chairperson shall have a casting vote.
3) Dissenting opinion of any member shall be stated in the decision thereof.
8. Organization of the Tribunal
1) The Tax Appeal Tribunal shall have:
(a) a President;
(b) members of the Tribunal;
(c) secretariat and the necessary staff.
2) The President of the tribunal shall be appointed by the Government.
9. Powers and Duties of the President of the Tribunal.
The president of the tribunal shall have the following powers and duties:
1) to preside over the tribunal;
2) to assign members and designate the chairman for each tribunal;
3) to employ and administer employees of the secretariat in accordance with the Federal Civil Service laws;
4) to prepare and submit the annual work program and budget of the tribunal;
5) to effect expenditure in accordance with the approved work program and budget of the tribunal;
6) to represent the tribunal in all its dealings with third parties;
7) to cause the decision with respect to the allowance of the members of the tribunal;
8) to delegate part of his powers and duties to other officials and employees of the secretariat to the extent necessary for the efficient work of the secretariat;
9) to submit, to the Prime Minister, annual and, where necessary, periodic report on the activities of the tribunal.
10. Members of the Tribunal
1) Each tribunal shall have five members, one chairman and a deputy chairman who acts in the absence of the chairman.
2) The tribunal shall have members represented by the representatives and the procedure for representation shall be regulated by a directive.
3) Without prejudice to the provisions of Sub-Article (2) of this Article, the other members of the tribunal shall be appointed by the government upon the recommendation of the president.
4) The terms of office of the members of the tribunal shall be four years. Any member may, however, be re-elected or reappointed for one additional term of office.
11. Powers and Duties of the Chairman of the Tribunal.
The chairman of the tribunal shall;
1) preside over the tax appeal hearing; ensure the observance of order of the proceedings;
2) ensure that all verbal and written statements of the proceedings are properly kept and recorded in minutes and decisions.
12. Secretariat of the Tribunal
1) The secretariat shall be accountable to the president.
2) The secretariat shall;
(a) accept appeals lodged against the tax assessment made by the Authority, after having ascertained that the conditions required for the making of an appeal set by this Proclamation are satisfied;
(b) refer appeals accepted in accordance with Sub-Article (2) (a) of this Article within seven working days to the tribunal;
(c) keep in tribunal’s decision and documents and also provide the administrative support necessary to the tribunal;
(d) perform such other duties as may be assigned by the president.
The budget of the tribunal shall be allocated by the Federal Government.
14. Books of Account
1) The tribunal shall keep complete and accurate book of accounts.
2) The account of the tribunal shall be audited annually by the Auditor General or by auditors designated by him.
15. Conditions Required for the Making of an Appeal
1) Appeals against the tax assessment by the Authority shall be made in writing and be submitted in, at least, three copies.
2) It shall be a condition to the appeal that appellants shall, before the end of the period prescribed in Article 14 thereof, deposit with the Authority the following amount:
(a) an amount equal to seventy-five percent (75%) of the tax assessed by the Authority; or
(b) an amount equal to seventy-five percent (75%) of the tax assessed on the appellant’s to which final and conclusive assessment has been made. The amount which shall be deposited is which ever of the above amount is the lesser;
(c) Notwithstanding the provisions of Sub-Article (2)(b) of this Article, the amount which shall be deposited shall in no case be lower than the amount of the tax payable by the tax payer on income declared by him;
(d) Where the tax payer is assessed for the first time, the amount to be deposited shall be at least the amount of tax payable on income declared by him, or if the tax payer has made no declaration, an amount equal to fifty percent (50%) of the tax assessed by the Authority;
(e) Notwithstanding the above provisions, it shall be a condition to the making of an appeal that the appellant shall deposit an amount equal to fifty percent (50%) of the tax assessed in accordance with the Sales and Excise Tax Proclamation No. 68/1993 (as amended).
16. Period of Appeal
1) An appeal must be made within thirty (30) days from the date of delivery of the notification of the tax assessment to the tax payer.
2) Where a tax payer fails to appeal within the period prescribed in Sub Article (1) of this Article, or fails to deposit, or pay the amounts referred to in Article 13 hereof, the tax assessment made by the Authority shall be considered as final, conclusive, and immediately enforceable.
17. Appeal from the Decision of the Tribunal
1) Where the Authority or the tax payer dissatisfied with the decision of the tribunal on the ground that it is erroneous on any matter of law, either party may, within thirty (30) days from the date of delivery of notification of said decision, appeal to the Federal High Court .
2) Where the court of appeal, to which the appeal is taken pursuant to Sub Article (1) of this Article, after examining the appeal, has found out that the decision of the tribunal contains error or any matter of law, it shall, determine on any question of law that arise, notify its decision to the parties, and return the case to the tribunal.
3) The court of appeal, in no case may enter into the merits of the assessment.
4) An appeal made from the decision of the Federal High Court shall be confined to the points considered by the same court.
18. Execution proceedings
1) Any appeal made on the decision of the Tribunal may not prohibit the execution of the decision.
2) Where the assessed amount is altered as a consequence of the decision of the highest court of appeal to which an appeal is taken:
(a) any amount over paid shall be immediately refunded to the tax payer; or
(b) any balance due shall be immediately paid by the tax payer.
19. Duty to Cooperate
Any person shall have the duty to cooperate with the tribunal in the implementation of this Proclamation.
20. Transitory Provisions
1) Appeals pending against the tax assessed by the Authority, prior to the coming into force of this Proclamation, shall be
heard by the tribunal established pursuant to this Proclamation.
2) Previously decided cases are regarded as decisions taken by the tribunal established in accordance with this Proclamation.
21. Inapplicable Laws
1) The provisions of Article 49 through 61 (inclusive) of the Income Tax Proclamation No. 173/61 (as amended); and
2) All laws or regulations inconsistent with this Proclamation shall not apply to matters covered herein.
22. Effective Date
This Proclamation shall enter into force as of the 8th day of March, 2001.
Done at Addis Ababa, this 8th day of March, 2001.
NEGASO GIDADA (DR.)
PRESIDENT OF THE FEDERAL
DEMOCRATIC REPUBLIC OF ETHIOPIA