Key Benefits:
88. Objection to assessment
(1) Any person aggrieved by an assessment made on him or her may, by notice in writing lodged with the Commissioner General within 60 days after the date of the notice of assessment, object to the assessment accordingly:
Provided that no objection shall be considered unless-
(a) a tax return for the tax year to which the assessment relates has been furnished; and
(b) tax due on the taxable income declared has been paid.
(2) Where the assessment is-
(a) an additional assessment; or
(b) a reduced assessment which, in part, imposes a fresh liability,
the person assessed shall have no further right of objection than he or she would have had if that assessment had not been made, except to the extent to which the assessment has imposed a fresh liability on him or her.
(3) An objection shall specify particulars of the grounds on which it is made.
(4) In this section "aggrieved by an assessment" means aggrieved by-
(a) the inclusion in an assessment of an amount as part of the taxable income;
(b) the disallowance in an assessment of an amount claimed as a deduction in ascertaining the taxable income;
(c) the determination by the Commissioner General of the amount of an assessed loss;
(d) the amount set off under section 61 or section 63;
(e) the imposition of any amount of penalty for failure to lodge a tax return within the prescribed time or any extended time allowed under section 77;
(f) the imposition of any amount of penalty for failure to lodge a correct tax return;
(g) any decision relating to the status of a company under sections 130, 131 and 132;
(h) a determination by the Commissioner General of the amount of capital losses on disposal of assets;
(i) a denial of issuance of a Tax Clearance Certificate under section 112A.
(5) Notwithstanding the provisions of subsection (1), the Commissioner General may consider an objection to an assessment-
(a) lodged with him or her any time after the 60 days' period prescribed by subsection (1), if the assessment was made following the furnishing to him or her of a tax return for the tax year to which the assessment relates;
(b) lodged with him or her, in the absence of such tax return, if such tax return is subsequently furnished to him or her within such period as he or she shall specify; or
(c) lodged with him or she within such further period as he or she shall specify if a tax return was furnished to him or her:
Provided that the Commissioner General shall not consider an objection to an assessment in terms of this subsection unless he or she is satisfied that reasonable cause has been shown for the delay in lodging the objection or furnishing the tax return, as the case may be, and tax due on the tax return furnished has been paid.
89. Decision by Commissioner General
(1) The Commissioner General shall consider any valid objection made under section 88 and may either disallow it or allow it either wholly or in part, and shall by notice in writing inform the person concerned of his or her decision.
(2) If a decision of the Commissioner General requires the reduction of an assessment made on any person, the Commissioner General shall issue a notice of reduced assessment to that person, together with the notice of his or her decision, or as soon as is practicable thereafter.
For the purposes of this Part there shall be a Board of Adjudicators constituted and regulated in accordance with the provisions of the Ninth Schedule.
91. Appeal from decision of Commissioner General
(1) Any person who is aggrieved by the decision of the Commissioner General on an objection (hereinafter referred to as the appellant) may, by notice of appeal, appeal therefrom to the Board of Adjudicators.
(2) Notice of appeal shall-
(a) be made in writing, in a format prescribed by the Minister;
(b) be served to the Commissioner General within a period of 14 days from the date of lodging the notice of appeal to the Board of adjudicators;
(c) be lodged with the Board of Adjudicators within 60 days after the date of service of the notice of the Commissioner General’s decision on the objection, or within such further time as the Board of Adjudicators may for good cause allow;
(d) be restricted to the grounds stated in the objection given to the Commissioner General except for such modifications as may be necessary arising from the partial allowance by the Commissioner General of the objection; and
(e) contain an address for service of notice of the date and place of hearing.
(3) In this section "aggrieved by a decision of the Commissioner General" means aggrieved by-
(a) the inclusion in an assessment of an amount as part of the taxable income;
(b) the disallowance in an assessment of an amount claimed as a deduction in ascertaining the taxable income;
(c) the determination by the Commissioner General of the amount of an assessed loss;
(d) the amount set off under section 61 or 63;
(e) the imposition of an amount of penalty for failure to lodge a tax return within the prescribed time or any extended time allowed under section 77;
(f) the imposition of any amount of penalty for failure to lodge a correct tax return; or
(g) any decision relating to the status of a company under sections 130, 131 and 132.
(4) Upon lodging a valid notice of appeal with the Board of Adjudicators, the appellant shall, within a period of 14 days from the date that he or she lodged the notice of appeal, lodge a comprehensive memorandum of appeal with the Board of Adjudicators, in a format prescribed by the Minister, and the memorandum of appeal shall not be valid unless it contains the following documents-
(a) the tax return;
(b) the notice of assessment;
(c) the notice of objection;
(d) the decision of the Commissioner on-
(i) the tax assessment,
(ii) the objection,
(iii) a refund application,
(iv) a taxpayer registration, or
(v) any other decision as the case may be;
(e) the notice of appeal; and
(f) the statement setting out the matter in dispute between the appellant and the Commissioner General.
(5) Upon lodging the memorandum of appeal with the Board of Adjudicators, the appellant shall serve, immediately, a copy of the memorandum of appeal to the Commissioner General.
(6) Upon receipt of the memorandum of appeal, the Commissioner General shall, within a period of 14 days or such other period as may be granted by the Board of Adjudicators, lodge a reply thereto with the Board of Adjudicators and immediately serve a copy of the reply to the appellant.
(7) A party aggrieved by the decision of the Board of Adjudicators may appeal to the High Court in the manner provided under section 93.
92. Hearing by the Board of Adjudicators or High Court
(1) Upon every hearing of an appeal by the Board of Adjudicators, the Board may confirm, increase, annul or order the reduction of any assessment, or may make such other order as it deems fit.
(2) On any appeal to which this section relates both the appellant and the Commissioner General shall bear their own costs, except where the Board of Adjudicators is of the opinion that-
(a) the decision of the Commissioner General on the objection was arbitrary and unreasonable; or
(b) the grounds of appeal by the appellant were frivolous,
when the Board of Adjudicators may make such order as to costs as it deems fit.
(3) On any appeal the burden of proof shall lie upon the appellant.
(4) At least 30 days before the date fixed for the hearing of an appeal by the Board of Adjudicators the Chairman shall, by notice in writing, advise the appellant and the Commissioner General of the date and place on and at which the appeal has been set down for hearing.
(5) At every hearing by the Board of Adjudicators the appellant and the Commissioner General shall be entitled to appear in person or by representation.
(6) The sittings of the Board of Adjudicators for the hearing of any appeal shall be open to the public, save for reasons reserved by the Board of Adjudicators, the hearing may be in camera.
(7) The decisions of the Board of Adjudicators may, from time to time, be published.
(8) The Minister may make regulations for the administration of the affairs of the Board of Adjudicators.
(1) The Commissioner General or the appellant may appeal to the High Court from any decision of the Board of Adjudicators which involves a question of law, including a question of mixed fact and law, or where the amount of tax in dispute exceeds the sum of P10,000, but in any other case the decision of the Board of Adjudicators on an appeal shall be final and not subject to further appeal.
(2) The Commissioner General or the appellant may appeal to the Court of Appeal as of right from any decision of the High Court which involves a question of law, including a question of mixed fact and law, but in any other case the decision of the High Court on an appeal shall be final and not subject to further appeal.
(3) On any further appeal to which this section relates the High Court or Court of Appeal, as the case may be-
(a) may confirm, increase, annul or order the reduction of any assessment;
(b) may make such other order as it deems fit; and
(c) may make such order as to costs as it deems fit.
(3A) On any further appeal to which this section relates, both the Commissioner General and appellant shall bear their own costs, except where High Court is of the opinion that-
(a) the decision of the Commissioner General on the objection was arbitrary and unreasonable; or
(b) the grounds of appeal by the appellant were frivolous, then the Court may make such order as to costs as it deems fit.
93A. Production of additional evidence
(1) The appellant shall not produce before the Board of Adjudicators or the High Court new evidence, whether oral or documentary, or a new witness,other than the evidence or witness produced by the appellant during the course of proceedings before the Commissioner General, except in the following circumstances-
(a) where the Commissioner General refused to admit evidence which ought to have been admitted;
(b) where the appellant was prevented, by sufficient cause, from producing the evidence which he or she was called upon to produce by the Commissioner General;
(c) where the appellant was prevented, by sufficient cause, from producing before the Commissioner General any evidence which is relevant to any ground of appeal; or
(d) where the Commissioner General has granted the order appealed against without giving sufficient opportunity to the appellant to adduce evidence that is relevant to any ground of appeal.
(2) No evidence shall be admitted under subsection (1) unless the Board of Adjudicators or the High Court records, in writing, the reasons for the admission of the evidence and a copy of the record is given to the Commissioner General.
(3) The Board of Adjudicators or the High Court shall not take into consideration any evidence produced under subsection (1) unless the Commissioner General has been allowed to-
(a) examine the new evidence or cross-examine the new witness produced by the appellant; and
(b) produce any new evidence, whether oral or documentary, or a new witness in rebuttal of the new evidence or witness produced by the appellant.
(4) Nothing contained in this section shall affect the powers of the Board of Adjudicators or the High Court to direct the production of any document or the examination of any witness to enable the Board of Adjudicators or the High Court to dispose of the appeal.
94. Payment of tax not suspended by notice of objection or appeal
The obligation to pay any tax chargeable under an assessment shall not be suspended by reason of any notice of objection or appeal having been given against such assessment, and the tax charged may be recovered as if no such notice of objection or appeal had been given.
