A PROCLAMATION TO PROVIDE FOR
THE ESTABLISHMENT OF THE
FEDERAL INLAND REVENUE AUTHORITY
WHREAS, the sharing of revenue between the Federal and Regional Governments has been made in line with the prevailing Federal state structure;
WHEREAS, the collection of legally specified Federal tax revenues, which originate and are dispersed in all the regions, has to be properly executed;
WHEREAS, it is deemed necessary to establish a Federal Inland Revenue Authority as an autonomous public office with the requisite powers and duties as well as an efficient working system;
NOW, THERFORE, 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 Inland Revenue Authority Establishment proclamation No. 61/1997.”
In this Proclamation, unless the context otherwise requires:
1) “Person” means may natural or juridical person;
2) “Tax Law” means legislation that provides for taxes and duties specified for collection by the Federal Government, except those levied on import and export goods;
3) “Board” means the Federal Government Revenues Board;
4) “Tax Assessment: means computation, in accordance with the relevant law, of the tax amount to be paid on the basis of a declaration of income submitted by a tax-payer, together with books of accounts and statements kept thereto, or by way of estimation where the law so permits.
1) The Federal Inland Revenue Authority/ hereinafter referred to as “ The Authority” / is hereby established as an autonomous public office having its own juridical personality.
2) The Authority shall be accountable to the Board.
4. Head Office
The Head Office of the Authority shall be in Addis Ababa and it may have branch offices, elsewhere, as may be necessary.
The Authority shall have the following objectives:
1) to enforce and implement tax laws, regulations and directives;
2) to assess, collect and execute legally specified federal taxes.
6. Power and Duties of the Authority
The Authority shall have the following powers and duties:
1) to assess and collect legally specified federal tax revenues categorized, by law, for collection by the Federal Government;
2) to collect, compile and disseminate information necessary for tax assessment;
3) to inspect documents, in any person’s possession where necessary for the execution of tax laws;
4) to devise systems and working methods for tax assessment, collection, keeping of accounts and other related activities and ensure the implementation thereof;
5) to take appropriate measures for the exercise of rights and fulfillment of obligations by tax-payers;
6) to undertake and submit, for approval by the Board, studies for the revision of tax laws, regulations and directives;
7) to cause the investigation, by police, of crimes committed in contravention of tax laws and upon having prosecutors appointed, initiate and pursue the prosecution thereof;
8) to delegate, in whole or in part, its tax assessment, collection and execution powers to the revenue collection organs of Regional Governments, whenever deemed necessary, and to provide the necessary support and advice for their implementation.
9) To provide schemes for training and skill upgrading with a view to developing competent personnel in tax administration;
10) To own property, enter into contracts and sue and be sued in its own name;
11) To carry out such other activities as are necessary for the attainment of its objectives.
7. Organization of the Authority
1) The Authority shall have:
a) a General Manger;
b) a Deputy General Manager; and
c) the necessary staff.
2) The General Manager shall be appointed by the Government upon recommendation of the Board.
3) The Deputy General Manager and other officials of the Authority, accountable to the General Manager or the Deputy General Manager, shall be appointed by the board upon recommendation of the General Manager.
8. Power and Duties of the General Manager
1) The General Manger shall, in accordance with general directives given by the board, plan, direct administer and supervise the activities of the Authority.
2) Without limiting the generality stated in sub-Article
(1) of this Article, the General Manager shall:
(a) exercise the powers and duties of the Authority specified in Article 6 of this Proclamation;
(b) prepare and submit to the board the annual plan, work programmes and budget of the Authority and implement same upon approval;
(c) effect payments in accordance with the approved budget and work programme of the Authority;
(d) employ and administer personnel of the Authority in accordance with directives approved by the Board in observance of the basic principles of federal civil service laws;
(e) represent the Authority in all its dealings with third parties.
3) The General Manger may delegate part of his powers and duties to the Deputy General Manager and other officials as well as personnel of the Authority to the extent necessary for the efficient management of the Authority.
4) The General Manager shall submit to the Board annual and, where necessary, periodic reports on the activities of the Authority.
The budget of the Authority shall be allocated by the Government.
10. Books of Accounts and Auditing
1) The Authority shall keep complete and accurate books of accounts.
2) The accounts of the Authority shall be audited annually by the Auditor General or by auditors designated by him.
11. Transfer of Rights and Obligations
1) The rights and obligations of the office known, formerly, as the Inland Revenue Administration and, later on, as the Inland Revenue Authority are hereby transferred to the Authority.
2) Designations made in tax and other laws as “Income Tax Authority”, “Tax Authority”, “Inland Revenue Department” and similar others are hereby substituted by: “Federal Inland Revenue Authority”,
Any official or personnel of the Authority who:
1) on grounds of relationship or other connection causes or attempts to cause non-payment or under-payment of taxes or duties hall be punishable with rigorous imprisonment from ten to fifteen years.
2) Destroys, hides, or falsifies by altering, information collected for purposes of assessment of taxes or duties shall be punishable with rigorous imprisonment from five to ten years.
3) Commits other offences in connection with his duty shall be held liable under the relevant provisions of the Federal Government of Ethiopia Financial Administration Proclamation 57/1996.
13. Inapplicable laws
All laws, regulations, directives and practices inconsistent with this Proclamation shall not apply to matters covered hereunder.
14. Effective Date
This Proclamation shall enter into force as of the 20th day of February, 1997.
Done at Addis Ababa, this 20th day of February, 1997.
NEGASO GIDADA (DR.)
PRESIDENT OF THE FEDERAL DEMOCRATIC
REPUBLIC OF ETHIOPIA