THE RULES OF PROCEDURE & POWER OF THE TAX APPEAL TRIBUNAL
The Minister issued new Tax Appeal Tribunal (Procedure) Rules in 2021. The Rules were issued under powers in paragraph 21 of the Fifth Schedule to the Federal Inland Revenue Service (Establishment) Act. The Rules, which override the 2010 Rules, are meant to direct Tax Appeal Tribunal hearings in terms of practice and procedure. The new innovations contained in the rule include:
a. Electronic filing: According to the Rules, all processes and documents to be submitted to the TAT secretariat may be submitted electronically if so requested by the TAT.[11]Similar to this, processes and papers are correctly served when sent electronically, as specified by the TAT, whether by email or another method;[12]
b. Virtual hearing of application: The Rules allow for virtual proceedings particularly for delivering rulings and applications using technology or platforms recommended by the TAT;[13]
c. Place of filing appeal: According to the Rules, appeals may be submitted in any of the secretariats of the eight zones as long as the Notice of Appeal and any supporting documentation are correctly headed with the name of the relevant zone of the Tribunal where the matter is to be heard. The appeal would subsequently be moved to the appropriate zone in accordance with the Chairman’s instructions;[14]
d. Pre-trial conference: The TAT may order a Pre-trial conference to help resolve disputes by focusing on fewer topics;[15]
e. Mandatory payment of 50% of tax assessed: A taxpayer who intends to appeal must first deposit 50% of the tax that is being contested into an account that the TAT has designated as security for the appeal. The taxpayer must also submit a deposition to that effect together with the appeal;[16]
f. Documents only procedure: Where a dispute may be settled through documentary evidence, the parties may forgo an oral hearing. Then all the parties need to do is submit any pertinent paperwork with the Notice of Appeal or Reply, Witness Statement on Oath, Written Address;[17]
g. Costs: The Tribunal now has discretion to order cost against a party, its representative or a legal practitioner for any misconduct, undue delays or defaults.[18]
To this end, the Tax Appeal Tribunal is empowered pursuant to paragraph 20(2) of the Fifth Schedule of the FIRS (Establishment) Act, to:
a. Require the discovery and production of documents;
b. Receive evidence on affidavits;
c. Dismiss an application for default or deciding matters ex-parte;
d. Summon and enforce the attendance of the person and examine him on oath;
e. Set aside any order or dismiss any application for default or any order passed by it ex-parte;
f. Call for the examination of witnesses or documents, review its decisions; and
g. Do anything which in the opinion of the Tribunal is incidental or ancillary to its functions.