Appeal to the Assessment Review Committee (ARC)
A taxpayer may object to a tax assessment raised by the MRA and the objections will be dealt with by an independent unit- the Objections and Appeals Dispute Resolution unit (OADR) at the MRA itself. The OADR must determine the objections lodged within 4 months from the date the objections were lodged.
If the OADR maintains the MRA’s assessment, at first instance, a person who is aggrieved by a decision of the MRA may, within 28 days, lodge representations with the ARC, for a review of the determination of the OADR. The Mauritius Revenue Authority Act 2004 (MRAA) provides that the ARC shall aim to fix the case for hearing within 3 months from the date the representations were lodged and give its decision on the representations no later than 4 weeks from the end of the hearing.
However, hearings before the ARC depend on the complexity of the issue and normally take several years before a final ruling is delivered.
On 16 August 2024, the Revenue Appeal Tribunal Bill was published with the object establishing the Revenue Appeal Tribunal (RAT) to take over the functions and powers of the ARC under the MRAA. The RAT will benefit from certain additional powers such as make such order requiring the attendance of a person or the production of any record, document or exhibit as it thinks necessary or expedient for the disposal of an appeal and administer evidence on oath.
There is currently no indication when the Revenue Appeal Tribunal Bill will be passed as legislation.
Fast track system for objection to a tax assessment
An Alternative Tax Dispute Resolution (ATDR) panel was set up to deal with applications for review made by any person who has objected to an assessment. It is a fast-track system to resolve tax disputes with a view to promote resolution. The ADTR panel must make a decision within 6 months of being referred the case for review. The MRA may then amend or maintain the assessment in conformity with the decision of the ATDR panel.
The application may be lodged while the case is ongoing before the OADR. The law provides that the objection procedures will be suspended while the ATDR panel is considering the application. If no agreement is reached before the ATDR panel, the objection procedure will continue.
Further appeal
A person who is dissatisfied with a decision by the ARC on a point of law may lodge a written representation with the ARC requiring it to state a “case” for the opinion of the Supreme Court of Mauritius within 21 days of that decision. The ARC has 28 days to state and sign a “case” which is communicated to the appellant and to the other party. Upon receipt of the case stated, the appellant has 14 days to cause the “appeal” to be lodged, by way of notice.
The respondent in these appeals has 2 months, after the date of service of the notice, to serve on the appellant and file a notice of his intention to resist the appeal. The appeal case shall be fixed for trial within a year of receipt of the notice to resist appeal from the respondent. Judgment from the Supreme Court may take at least 2 years.
As a final resort, where a taxpayer or the MRA is dissatisfied with a judgment of the Supreme Court on a point of law, an appeal may be lodged to the Judicial Committee of the Privy Council, in the UK.
Under the Revenue Appeal Tribunal Bill, any appeals from the RAT would not be by way of case stated but as general appeals.
Alternatively, the taxpayer and the MRA also have the possibility to mediate before the ARC where the ARC considers that the issues raised in the written representations can be resolved through mediation.