Loose Tools & Taxation
We are a branch of a foreign company having WLL status annually filing tax returns. Recently we have received a notification from the tax department with regard to assessment and in that we have objection in consideration of loose tools. How do we raise objections?
According to Article 28 of the tax Laws, the taxpayer may object the tax assessment decision within thirty days from the date of its notification by a registered letter to the department. The objection shall be submitted to the department and the submission of the objection shall result in the suspension of the execution of the assessment decision. If the taxpayer fails to submit an objection within the period mentioned above, the assessment decision shall become final and the tax shall become due. In sixty days, the department shall settle the objection and elapse of the said period with no response from the department shall be treated as an implicit refusal of the same.
If taxpayer does not accept the department’s decision on the objection, an appeal may be submitted within thirty days from the date of notification of the department’s decision on the objection or from the elapse of the period provided for to settle the objection with no response made, as the case may be before the tax appeal committee as provided under Article 31 of the Tax Laws.