Company Tax：Appeal (Part 2)
REVIEW OF ASSESSMENT THROUGH APPLICATION FOR RELIEF IN RESPECT OF ERROR OR MISTAKE UNDER SECTION 131 OF THE ITA
1.Apart from an appeal under section 99 of the ITA, a taxpayer may make an application for relief under section 131 of the ITA in respect of error or mistake in the ITRF made by him. The determination whether a taxpayer has made an error or mistake is a question of fact and law.
2.The onus of proving that there is an error or mistake shall be on the taxpayer. The DGIR will review the assessment only if he is satisfied that the taxpayer has made an error or mistake in the ITRF or statement made by him for the purposes of the ITA which is furnished to the DGIR.
3.The conditions under subsections 131(1) and (4) of the ITA are:
a) Application for relief under Section 131 of the ITA will not be considered if the ITRF is made in accordance with the known stand, rules and practices of the DGIR prevailing at the time when the assessment is made.
b)The taxpayer must pay all taxes that have been made for the relevant year of assessment.
c)The taxpayer must make a written application by way of a letter or Form CP15C to the DGIR within five (5) years after the end of the year of assessment in which the assessment is deemed.
APPLICATION FOR RELIEF PROCEDURE
1.An application for relief can be made either by a letter or Form CP15C by stating the reasons in detail relating the application. CP15C can be downloaded and printed fro the following link: CP15C
2. In the event the letter or Form CP15C is not filled with the correct details, the application shall be returned to the taxpayer to enable the taxpayer to submit a new application.
3.If the application for relief is approved by the DGIR, the assessment will be amended and a reduced assessment will be issued.4.If the application for relief is rejected by the DGIR, a rejection letter together with the grounds of rejection will be issued to the taxpayer.
5.If the taxpayer disagree with the decision, he may request via a letter to the DGIR to send the application for relief (which was submitted earlier to the SCIT) within six (6) months from the date of the rejection. The DGIR shall forward the application to the SCIT within three (3) months from the date of receipt of the request.
6. In cases where a deemed assessment on ITRF or amended ITRF is made in accordance with the known stand, rules and practices of the DGIR prevailing at the time, the taxpayer's application for relief under sections 97A and 131 of the ITA will not be considered even though the taxpayer can prove that there is an error or mistake unless the error is arithmetical or computational.
DISPUTE RESOLUTION PROCEEDINGS (DRP)
1.DRP session may be conduct upon request by the taxpayer or initiate by the Dispute Resolution Department or State Director Office on case to case basis. This session is effective as a medium to review and to reach a settlement before forwarding Form Q to SCIT.
2.DRP can reduce cost and time spent by the taxpayer and IRB. It is and effective engagement platform between IRB and taxpayer.
3.If the taxpayer wish to request for a DRP session, taxpayer must first identify which level that handle their respective Form Q, whether it is reviewed by the Dispute Resolution Department or State Director Office. The request can then be sent to Dispute Resolution Department or the respective State Director Office which review the said appeal.
For further clarification and information with regard to appeal against an assessment, kindly refer to Public Ruling No.12/2017.