Understanding the Formal Dispute Resolution Process for Tax Assessments in Afghanistan
This guide explains the formal dispute resolution process for tax assessments in Afghanistan, as outlined in the Income Tax Law of 2009.
Introduction
The Income Tax Law of 2009 outlines a formal administrative dispute resolution process for individuals dissatisfied with their tax assessments in Afghanistan. Article 89 of the law provides a structured approach involving three main steps: requesting an amendment, lodging an objection, and appealing to a court. This guide aims to explain the dispute resolution process, including how to request an amendment or file an objection to a tax assessment, along with the procedures and timeframes the Afghanistan Revenue Department (ARD) follows. Understanding the taxation system in Afghanistan is crucial for taxpayers who need to navigate these processes. Resources such as the Taxation System in Afghanistan PDF and the Afghanistan Tax Calculator can assist taxpayers in understanding their tax obligations.
What Matters May Be Subject to an Amendment Request or Objection?
If a taxpayer believes their tax return or assessment is incorrect, they can request an amendment or lodge an objection. Situations where a formal amendment request or objection can be made include: An error is discovered in a filed income tax return or business receipts tax form. The ARD revises the tax payable or imposes penalties and issues an assessment notice. No tax return or form has been filed, but the ARD has issued an assessment imposing income tax, business receipts tax, or penalties. A fixed tax is imposed as a final tax instead of an annual income tax. Understanding the Afghanistan Tax Law is essential to determine whether an amendment request or objection is appropriate. For instance, rent tax in Afghanistan is a common area where disputes may arise, and knowing the specifics of the law can guide the amendment process. However, formal amendment requests or objections cannot be made for matters such as withholding tax calculations, fixed taxes on imports or exports, enforcement actions, or any interpretations of law provided in public or private rulings.
How and When May a Matter of Formal Dispute Resolution Commence?
To commence a formal dispute resolution, an amendment request must be submitted in writing within five years of the due date of the relevant tax return. If an assessment is not received within 30 days before this period expires, the request can be made within 30 days of receiving the assessment. It is important to note that contesting a tax assessment does not delay the requirement to pay the assessed tax amount. The Afghanistan Revenue Department ensures that disputed taxes are still collected while the resolution process is underway.
The Process of Formal Dispute Resolution
The formal dispute resolution process involves the following steps, which must be taken sequentially:
Step 1: Submit a Request for Amendment
Submit your amendment request in writing using the Request for Amendment form from the ARD or its website. Clearly state the reasons for disagreement with the tax return or assessment notice, and attach relevant documents. Requests must be submitted in Dari or Pashto, with English copies aiding the process. Submit the request to the manager responsible for your tax return or assessment. Taxpayers can also check their TIN number online in Afghanistan, which is necessary when filing amendment requests or any tax-related documents.
Step 2: ARD Review of the Amendment Request
The Afghanistan Revenue Department will review the assessment considering your reasons and supporting documents. They may request further information or require you to present your case in person or through a representative. The ARD aims to issue a decision within 60 days of receiving your request. If no response is received within this timeframe, the request is considered disallowed.
Step 3: Lodge a Notice of Objection
If dissatisfied with the ARD's decision or if no decision is made within 60 days, you may file a Notice of Objection within 30 days of the decision or the 60-day period expiry. Use the Notice of Objection form from the ARD, providing reasons for your objection and any additional supporting documents. Submit the notice in Dari or Pashto, with English copies facilitating the process. Address the notice to: Attention Director General Appeals and Review Unit Afghanistan Revenue Department Ministry of Finance Kabul, Afghanistan
Step 4: ARD Review of the Objection
The ARD will reassess your objection, considering your reasons and documents provided. Additional information may be requested, and you might need to attend a hearing. An Objection Review Panel of three independent senior officials will decide your case, aiming to issue a decision within 60 days.
Step 5: Appeal to a Court
If dissatisfied with the decision on your objection, or if no decision is made within 60 days, you may appeal to a competent court within 30 days of the decision or the 60-day period expiry.
Payment of Disputed Income Tax
Despite any ongoing dispute resolution processes, the disputed tax remains due and payable. Failure to pay by the due date may result in additional taxes and enforcement actions by the ARD. Successful amendment or objection outcomes entitle taxpayers to a refund of the paid tax.
Customs Duties and Other Taxes
The dispute resolution process under the Income Tax Law 2009 applies only to taxes imposed by that law. Disputes concerning customs duties should be directed to the Afghanistan Customs Department.
Enforcement Provisions
Non-compliance with the Income Tax Law 2009 may lead to administrative actions by the ARD, including additional taxes and penalties. Intentional tax evasion can result in referral to the Attorney General's office for prosecution.
Conclusion
Taxpayers in Afghanistan have access to a structured process for resolving disputes related to tax assessments under the Income Tax Law 2009. Understanding the steps and requirements of this process can help ensure that disputes are addressed effectively and efficiently.
Additional Resources
For more information, forms, and guides, visit the Afghanistan Revenue Department’s website at www.ard.gov.af. The site offers downloadable resources, including the Income Tax Law 2009, public announcements, rulings, and a comprehensive Income Tax Manual. The Afghanistan Tax Site provides valuable tools such as tax calculators and guides to help taxpayers understand taxation in Afghanistan and navigate their tax responsibilities effectively.