The Inland Revenue Department has published their revised Interpretation and Practice Note No. 6 to reflect legislative changes to the rights of appeal against tax assessments, which began to be applied from April 1 this year.
These notes are issued for the information of taxpayers and their tax representatives. They contain the Department’s interpretation and practices in relation to the law as it stood at the date of publication. Taxpayers are reminded that their right of objection against the assessment and their right of appeal to the Commissioner, the Board of Review or the Court are not affected by the application of these notes.
With effect from 1 April 2016, a taxpayer who disputes an assessment may apply directly to a court of first instance for leave to appeal against the IRD’s decision on a matter of law. The leave application should be made inter partes. If the Court of First Instance grants leave to appeal, it will hear and determine the substantive issue of the appeal. If the Court of First Instance refuses to grant leave to appeal, the appellant or Commissioner may make a further application to the Court of Appeal for leave to appeal. If the Court of Appeal grants leave to appeal, the case will be heard by the Court of First Instance.
Those cases delivered before April 1 will continue to be processed under the previous practice, which required an appellant or the Commissioner to make an application requiring the Board of Review to present the case to the lower court.
