*¥-

r~:r-r-*,f t..1..t-"~ -t qoht-ft.f~ tTof1t\.h

AoY-u&-A '1;JtT ;JUffJ

FEDERAL NEGARIT GAZETA
OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

Um~;;: 'foo-r cfr'J'C ti'li 9111Year No. 21

01\. -rf" Ii f &..1..&." ce Jl 'JUtJ&.l\f'f 6 r-f1l\.tJ
"Jlia "Oll-;t-IJUfP'1)1+' ntn~ ADDIS ABABA-3IIt December. 2002
';"1111 .,.wttf"~ ?'"tICo.-r ml14:H' ,wllJ

"7ar6fiJ. CONTENTS

"":E- cfr'J'CJ:f~/IiiU~ 'f.9'" Proclamation No. 308/2002

''''C1 "iic ;J-tJia Turnover Tax
"":E- "'" "K' Iif.?)~ Proclamation , """""" : ,. , Page 2024

"":E- cfr'J'CJ:f~/Iun~ PROCLAMATION NO. 308/2002

fi-C1 "iic ;J-tJia t\D7iah4C.A TURNOVER TAX PROCLAMATION
'WIlJ "":E-
WHERb"AS, it has been determined that there shall be
cfrml11'i" h.1iiiaTooiT t\D7i\f.<? : ;J-tJ{) hootIJ.A enacted a value-added tax to enhance saving and investment,
t\oolr1i W~9'" 0;",. w.ia'J' fDt;J-fw.i tJtt:"'-r (lopm+9'" minimize the damage that may be caused by attempts to avoid
;J-tJ{).1 "t\ootJ4C.A '''7.f.~"w. 'J'~T t\.fiah-rA f"7.~t\W.i or evade taxes, stimulate economic growth, and improve the
M-r t\OO+~iaf fl\."'''''Dt iJY;,,-ri t\D74.mif ~'i" Om:""" relationsl}ip between Gross Domestic Product and Govern-
ment Revenue;
'''"C w.ia'J' 9'"C-r'i"Oooi<?P'.}- "0. ootthA ft\W.i <?ij.~:"
t\D7?f?fAf'.,.£Q.D76 ~(\-r ;J-tlia UP'&. ".e ~iJlW.A 'i-wM WHEREAS, administrative feasibility considerations limit
Oooll"~ f the registration of persons under the value-added tax to those
'.,.£Q.D76 ~(\-r .+tJiai "ia.,..&;f.C "oo:f~-r "?9'"T with annual taxable transactions the total value of which
exeeds 500,000 Birr;
w.ia'J' OD7ia"l1-rt\;J-tJ{). '''toou"o- (a9'~ ;J-tJia 'Dth4C.AO:"
'foo;J-ce <?-o.e-r h1lC ~fn: o".e ~i.llll"i 'i-wM iat\II"~: . WHEREAS, an equalization turnover tax imposed on
Oi<?Y; <?ij.~T w.ia'J' tt:"""'ce~-ri t\D7ia4C.
i : persons not registered for value-added tax allows them to
fulfill their obligations and also enhances fairness in commer-
""'aJ.D76 ~(\-r ;J-tJia fA'''OOU''o- (a9'~ <?1..;J-:fw.i
cial relations and makes complete the coverage of the tax
iJ1,mffiof "'i" , ;J-tJia P'C'f-l:i 114.if.,."", t\D71: ~<?
"Mia.,.tthf system;
"'Ci"iic :t'tJia "":E- D7W.IlJ-r "ia4C."1. II"lf
00011'1:1 NO~ THEREFORE, in accordance with Article 55(1)
and (11) of the Constitution, it is hereby proclaimed as
0;"1 ooi"iJ"''I: ."i+;r 2~(1i) ~'i" (Iii) OOIPt.:r fDth
follows:
.,.t\w. ;J-W.~AI2
SECTION ONE
htt:A "if: General
m:"" " 1. Short Tide
Ii' ,,~C CiJia This Proclamation may be cited as the "Turnover Tax
,
~IJ 1t'f':E-",.,.e; "iic ;l'tJia J\«f':E-cfr'J'CJ:f~/Htfj~" Proclamation No.308/2002.'
.,.111\-t\.m+il .e'f"AI2

n~ 'P:J 4.85 .
~:J~"" ;Jtt.frJ r'PI.4l. it1f.li
Unit Price Negarit G.P.O.Box 80,001
 ,.,.. Federal Negarit Gazeta- No. 2131" December,2002-Page 2025
'JK" 11£.1~ u-.u\ );J~+ ,:JII ,*-rc Iii :l"U"'P'II +1 liin~

I- :"C=\DI£ 2. Definitions
i. {UUJ A1f'~ 10-1\...+C,.,. fA"'''IIJTIO- .4>,,:,.'i 1) For the purpose of this Proclamtion, unless defined
th~.,.if O.,.~~& ~f\"" :l'hl\ h"'~ ck-rC Uit~1 otherwise in this Proclamation, terms used herein
IUng (htltJ 0:\1\ "f"'{,Q,,,IM~I\.:" :l'hl\ 1\"'~" shall have the meaning as defined in the Value-
"'-{1"" O"'l.nv""IO-) 10-"''1' f1'(tIJ}TiD-') :'-C1-9"
Added Tax Proclamation No. 285/2002 (hereinafter
f,f,tf ~1
referred to as the "V AT Proclamation");
I. "10:""1\ f1if~ 10." "'I\~ ftDlJd. "'4>'7i "J.',f..t...,
10. ftlf') I f.,.ifm-:" b.4>~'f f-f'not.1: 2) "Gross Receipts" means income, without reduction
f"'"1' 10:"""
o:""}m,,1JO f"""".O:"') CP;Jf,""9"&.I:\1 of expenses, including the cost of goods sold;
f' ":I'hl\ f"th4.AO:" ..,11f,:"" "'7l\:" OfttJ htp~ 3) "Taxable Transaction" means a :.upply of goods or
1\')+W 1 h+C1 1-iic :l'hla ." h"'1.~1l!}o ..,11f,:'- a rendition of services in the course or furtherance of
OI\.,.4>C o')..,t.- I"~ Y.1.+ tDf,9" f,)"'~ ",lr1
a taxable activity, other than an exempt transaction
~ ,):"1\.4>1\ "",ififA O"'l.~l'" '!'~:,. b:J'~'f')
(JJf,1J8h1A..,tt-.,.if') oPl\m:" "0J0>I described in Article 7 of this Proclamtion;
"':"(.-{1
4) "Person not Registered for VAT" means a person
§- "1\.,.£L1.""/& ~I\:" ;1-hl\ fA.,.ootl10 (tm-" "'11\:'-
0"'£L1."'~ ~I\+ :l'hll hCP~ ,*-rC Uit?;/Iu~jQ who, according to Article 16 and 17 of the Value
h')4>W II "1\'1 I1 0.,.1.""1m- 001P~:" ~(/D:I'-e Added Tax Proclamation, is not registered by reason
f1if~ ~ ,):"1\.4>4.10-h-oc ?;fif. 1Df,9" "7.~il:'--r of his annual turnover being below Birr 500,000 or
h"7.!DI\.,m- 0010') o:l'if 000(.1'''' 9"h').fT tDf,cr threshold set by the Minister; or by reason of not
{iU1.~"+ 11:\"'00""0 (am- 1m-j having applied for voluntary registration;
?;- "(aIO-" ",1\+ "'I')"i'm-1J8..,I\(t-o j' t.-C~:" tDf,9"
5) "Person" shall mean any individual, body or
",10C ftlf') I 1\.1\') (am- ooomhA "'4>"'~"i:
10-1\... If':" f')..,t.- P'~ f"'l.fttY.t.-') association of persons and includes a business
O"-+\"'kl
('')..,t.- mh.A ~~"trAj representative residing and doing business in
I- "t.-C~+" "71\+ f''''t.-",~ f"tJ'ttY.t.- "''Tm-9'' Ethiopia on behalf of the principal;
h-11'),f 'Df,1J8 f",00""0 f1iCtJ'I t1I/10~ roJ.',9" 6) "Body" shall mean any company, registered part-
h",00""0 f1ich'l ",10C ;JC "'OO""J.', \"If.,' nership, entity formed under foreign law resembling
n~ h1C ih.., oolP(.T f.,.ststiJII t.-C~+ tDJ.',9"
a company or resgistered partnership; or any public
"''TID-'r fOD')"'",+
fA"''''' t.-C~:" tDJ.',9"
enterprise Or financiai agency that carries out
f1')"-o t.-C~+ ftlf1 I OIO-6l"""C fl\1 hilA
OoomhA O"-+\"'kl 10-1\1' f1"'~ Fir f"7.Y'n.'l. business activities including body of persons cor-
1.10-1 mh.A ~' 6')'" 0"'1.11'&-0+ Oh...,.r-kftDJ.',9" porate or unincorporated whether created or recog-
mf,1JO bm-:"' 111 nized under a law in force in Ethiopia or elsewhere,
0""1\ h1C ih.., f"'oPlP~'"
0.1f"}9" 11101f19'' ~ ') 1. t.-C~"" f"7. 14>,,4>irJ and any foreign body's business agent doing
f,£L1.1JO &-A j
busicess in Ethiopia on behalf of the principal;
i- "b?" ",,,+ fA1O-1IM'cp;J fl\lO- 1104>"7.:1'f°'1.l1'1'
7) "Goods" means any type of goods or commodity
mf,1JO tt:I\.,.+ f"'l.1":1..1\ "'I'ITIO-IJO b.4>mf,9" if.,.'I'
that has exchange value, utility and brings about
ft(.l'') ~11\"+11JO 1-£IJ8&-AI
~. "1il~" "71\+ 6:J>~if1 O...&. 11"-11 (1Jf,9" satisfaction, and includes animals;
Olif,.,+ 00101f+ ~' f.,.m(a" htt:f 0004>01:\ 8) "Sale" means exchange of goods in cash or in kind
h1A..,I\-+ 001\10+ (l1f1 I :l'hl\ hci-~ fl\hrt.f and rendering of services upon receipt of payment,
f"'l.(aIlJTIO-1 b:J>~"f m101JOf~4>CI1Tm-1 h11:\.., and includes goods supplied or services rendered by
"".,.if ~~"trAI the taxpayer free of charge;
D- "h1A..,tt-+" "71\+ fb:J>9'if') 1flD-ID-C f",J.', 9) "Service" means work done for others which does
~IJ8C Ohtt:l f"'l.h'lID') "'I'ITIO-IJO.,...,I1C .,m-I
not result in the transfer of goods;
I- ~~f:l'hh I1I\P'AnJ')" ",1\+ f~1.&-A h1C 10-1\'1'
10. I1I\p'AIIJ,) CP'lOD"'~1 0.+ ~' O"'l\f~ fh1ti: 10) "Tax Authority " means the Federal Inland
htt:tt-if f.,.stst :tC11tt: JtihL+ o.-r-:t:~1Jlu-9" Revenue Authority and the tax authorities of the
ffhAA- ~' ftl1""7 ool\.,..c;~C'if f10. (a1l"0. Regional States and city administrations;
1\111\:" ':f1O-1 11) "Tax" means Turnover Tax payable whenever
Iii- ":f"hl\" "71\+ f6J'9''f 1D101JO
fh1A..,"""''f 1if~ transaction of sales of goods and services is carried
O.,.h'iID" C fDthLA .,.C1 1-iic :l'hl\ ~IO-I
out;
II- ":f"hl\ h~~" "7I\T f.,.C1 1-iiC :l'hl\ t'H11\fl
12) "Taxpayer"means a person obliged to collect and
I\:f"h,," I1I\P'AIII,) 10. ~'U1.C"l"'1.:I' f.,.IIII\O""
1'\10-"10-1 transfer Turnover Tax to the Tax Authority;
lr- "Dttl\otc" ~'I' "-tth:"C" "71\.}- ~11.:t-1.1JO 13) "Ministry" and "Minister" means the Ministry
.,.h.,./t- ('1')"-{1'i . t t A..,+ DtthotC ~'i and Minister of Finance and Economic Develop-
-tth:"C """11 ment, respectively.
1A" liLn U,.lrA. ~;J&T ;Jt1t11cfl'l'C~li :t'U~P' ~I"',) Ilin~ 'H". Federal Negarit Gazeta No. 21 31" December, 2002 Page 2026

f' f h 'P:( .,.~" "7.~:'f- 3. Scope

0 H.U h 'P~ h ')+ 1\ 1 CDf,9" h 'P:( ') 00 IP /.:'f- flOlJ.(' /...,
Unless exempted under Article 7 of this Proclamation or
0"7. CDII) lD- 0000 1,1 ~, i1~ .,.1./.,. fl il.,.+C: /\ of-(;J;},OIJ
I,
directives to be issued thereunder, Turnover Tax shall be
"f\:'f- ;I'll il 1 ~ "'00"1 0- (a~:f flh 1C lD-il'l' flDIJ.i'i
m-
payable on goods supplied and services rendered" by
'PTlD-iJJ'Y':f "li h1~..,ft-"':f flH.Uh'P~ OOIP/':"
"" persons not registered for Value Added Tax.
.,.C') laiic ;l'llil f,h~"~::

Iltt:~ o-/\:'f- SECTION TWO

The Rate of Tax and Exemption
f;l'llil OIJilh~ ~Il il/\oolD(a') "li
h;l' Il fa- ~" il /\OIJ.(' /..., 4. Rate of Turnover Tax
g. f.,.C') 1-iiC ;l'llil "'00') The Turnover Tax shall be:
i' O""liTlD-9" Oh1C lD-il'l' 0"7.7\'m-iJJ'~:f 1) 2% (two percent) on Goods sold locally
""
1 000'" (o-/\:'f- TC(a'):'f-) 2) for Services rendered locally;
I' Oh1C lD-il'l' 0"7.(am- h1~..,ft-"':f "", (a) 2% (two percent) on Contractors, grain mills,
V) fP'&- .,.*&-~:f : f"U~ lDtt:~ o..,.:f: f,"'t.1l tractors and combine-harvesters;
.,.~:f "li 1'19"l}"') vciiil+~"f h1~..,ft-:" (b) 10% (ten percent) on others.
I 000'" (o-/\:'f- TC(a'):'f-): 5. Base of Computation of the Turnover Tax
/\) ibft-:f I noo'" (hP'C TC(a'):'f-)
Base of computation of the Turnover Tax shall be the
.,.C') 1-iic ;l'llil f,h~"~11
gross receipts in respect of goods supplied or services
~. f.,.C') 1-iic ;l'llil ilib:'f- OOIP/.:'f- rendered.
;I'll fa- f"7.(a" o:'f- 'P ;J f iJJ' lD- lD"9" f h 1 ~ .., ft-1: m.p""
6. Obligation to Collect and Transfer the Turnover Tax
f1il"'1" 1 11.~lD-::
f.,.C') 1-iiC ;l'llil (a-f1ilf1111. fOlJ.('/..., ~"k~:'f- A person who sells goods'imd services has the obligation
I'
iJJ'~~,) to collect the Turnover Tax from the buyer arid transfer
OJ"9" h1~..,ft-"':f') f"7.7\''I' 0IJ')?/lD-9" (aID-
same to the Tax Authority. Hence, the seller is principally
01ilak I\.h~~ f"7.1l}ID-') ;l'llil h1=frID- (a-f1ilfl
"" accountable for the payment of the tax.
/\;I'Ilfa-l}/\P'~Il)') 1n. fll7.('/..., ..,10;1' h/\O:":: il/\(J'~9"
~ak il/\;I'll fa- f 001..00 1,1 of-ml-t "(J'li ~ II 7. Exemption
il/\OOIf,) 1) The following shall be exempted from Turnover
I' h;l'llil~'
i' f"7.h.,.ft-:'f- nH.U h'P~ h+II)/\ID- f+C') 1-iiC ;J-tJil Tax:
1lft:1 ~, liTlD-I (a) the sale or transfer of a dwelling used for a
V) 11.1,)il o-/\:'f- CJoo:'f-/1/\1/\ ootil,l 0.:" ?i1"'" minimum of two years, or the lease of a
"li footi 1,1 o.:'f- \1.&-": dwelling;
/\) f"-f,lj')il h1~..,ft-"':f: (b) the rendering of financial services;
th) /\ ..,') -I:'l":f li ""l~ 1\.1 ~"f 'I' li:'f- h 1 ~ ..,{\-:,. (c) the supply of national or foreign currency
"
h"7.lD-ft-:'f- Oil.,.+C fh1C ID-il'l'li fID-"'" h1C (except for that used for numismatic purposes)
1') f1:f') "li f'P il:'f-li M p.:f') OIJ(at.lJ1.:": and of securities;
00) "
OYf,OIJti:'f- .('C~"':f f"7.(am- f"9"~:'f- lD"9" (d) the rendering by religious organizations of
hh9" ~ 1'1:'f-;JC f"7.1lij. h 1 ~ ..,ft-.,.:f: religious or other related services;
IP) fihll9"li h1~..,ft-"':f "". h..,l}1t l}/\ID- foo,) (e) the supply of prescription drugs specified in
..,P':'f- 00
P' 1,1 o.:'f- 0"7. mil) 00001,1 ODIP/...,. directives issued by the relevant government
Oth \1.9" f"7.;I'" If- 00 .('~~ .,.:f:
agency, and the rendering of medical services;
/.) o:'f-9"uc:'f- .,.*II7:'f- f"7.(am- fOlJilTt1lJC h1~'" (f) the rendering of educational services provided
ft-.,.:f "')-'l0-9" /\ih'li:'f- 'I'OJ' Ooo'PiJ/\ ih'li:'f-
by educational institutions, as well as child care
f"7.(am h 1 ~ "'H:f:
services for children at pre-school institutions;
(a) /\.\of1CJC£ iJC~;I' f"7.(Doft- iJJ'~:fli h1~'"
(g) the supply of goods and rendering of services in
H:ff
the form of humanitarian aid;
1£) f~ibtJ."t-l,llf fh.~"" ') "li flD-Y h.pCf1:'f-:
(h) the supply of electricity, kerosene, and water;
+) f:'f-&-') il7'C:'f- h 1 ~ ..,t\-.,.:f:
(i) the provision of transport;
0) ""?/ lD-')9" f P' &-,,').p ilJ' f\ /\OIJhli OJ') /\ "7.(a'I'
(j) permits and license fees;
U 1: /\1ID')"'P':'f- f"7.LJ\9" htt:lf
.,.)
(k) the supply of goods or services by a workshop
~ 01lD'" 0"" 1P&-.,.ifo:J: hi1~ ,.~.,.~:f
employing disabled individuals if more than
flf).O:'f- hi1~ ,,~"'ifo:f') +'I'~ f"7.flPt.
60% of the employees are disabled; and
.('c~:'f- f"7.f+Cl}TlD- iJJ'~:ftj h1~..,ft-"':f:
:r:) 08' ihft::'f-:: (I) the supply of books.
f1,)"ofIli h.l'1ti"7. ~1I7:'f- "7.~il:'f-C O"'"l.flDlI)lD- 2) The Minister of Finance and Economic Develop-
I'
O8IIDI,I Oibft-T iJJ'Y':fli h1~"'H:f ",. f"7.h ment may, by directive, exempt other goods and
~f\lD- ;l'llil +1, "')-'lan I\.~.p.(' ,.:fI\A.1t services.
1W l1tnu.~" ):Mt ;JnllJ 4t1'C~li :rUUfP'~I +, Iilf7~ '-9". Federal Negarit Gazet~- No. 21 31" December,2002-Pag~ 2027.

Olf.tJh'}+W f+Hl"~T h:J"hi! ~, fODtJ',}OD1)"'~ 3) The Minister of ~~venue may, by directive, deter-
r"
hL '8fO f1o.9''f "7.tlt -rC O"'l1mil)OJc (lPOD~1 mine the scope and manner of exemptions provided
f.m(a'i All for,in this Article.
I

hti:A ,..It:'' SECTION THREE

f:Nu't. hlt+~~C P'Cq:,. Administrative Procedures
~" ;J-hfl-1 f"7i1"'~~C ~'i ~;rc-r f"7:"l-f1 ~"L .,:,.
8. Responsibility for Administration and Reporting
!f OtlU hCP~ ODlPl'-" f.,.C') MIC ;t-l"If1o,)ltt\.:" 1) The responsibility for the correct calculation and
O..,.htlA f"7b'im'}! f:J'hfl-,} "7lt;J-CD'tf 01'OJ
0J0 q i\P' A IJ)'} f"7:" timely payment of Turnover Tax and presentation of
fI'i f1.lL 1~ -0 ID-{}'I' A:1'h
a return to the Authority by the prescribed deadline
lfl'l ;J-h(\-'} 01.fl.aJo fODht.A ~"L~:" f:t'hlt h"'~
~(J)oll rests on the tax payer in accordance with this
f+C,) Proclamation.
g" "iic ;J-hia'} f"7"'+'&;1.C ~"k~:" f:t'tJfI- 2) The Turnover Tax is administered by the Tax
1li\P'AtIJ'} ~fDoll
Authority.
i" f'LIt-o 0011'1-0 lti\uP 111
9. Records
010. ..,l1C h'P~ <k'l'C Iliti/Iitf1§ h'}"'R' ~:S f'tlt11 Tax payers subject to the record-keeping requirement of
00111-0 fOD111 ..,~:t' f.,.tlJi\IVfOJc :t'hli h4-r-~ i\i'C,}
Article 48 of the Income Tax Proclamation No. 286/2002
""iie ;J-hlt hOJIt(a'} 'h'}~f1i\"'A 010. "l-oC h'P~ shall keep the records prescribed therein for use in
f :t"H"OJc'} f'tltil uP1I1-o ODf1l hi\IlT(J}o1l
, detennining Turnover Tax.
! f+C'} 1-iiC ;J-tJlt O?lt;J-m'tf lti\"7:"l-o 'he; :t'tJ
It''oPhLA 10. Filing of Turnover Tax Return and Payment
1) Tax payers subject to Turnover Tax shall:
Ii" f+C'} 1-iiC :t'tJil h~r-~=
V) 'h!,}~,}~ f'tIt-o'UL O"'m'i"'''' Oh'}~ OJC1.H. (a) file a Turnover Tax return with the Tax
OJclt'l' A;J-hlt 1li\P'AtIJ'} r.,.c'} ).iiC ;rnlt Authority within one month after the end of
"7lt;rOJ'tf "7.pl1l= every accounting period;
A) f+C'} 1-iiC ;rtllt tllJlt;J-OJ'tf i\"7:"lo.f (b) pay the tax for every accounting period by the
(1+(am 0Jc f1. tJ. 1~ -0 0JcIt'I' 0't It-0 1.H.CD- deadline for filing the Turnover Tax return.
uPhLA fAO:"') ;J-hlt fODht.&\i 2) For purposes of this Article "Accounting period"
..,~;r "Aq~OJcII shaH mean:
i\If.U h ,}+R' hL 'OfO "f'llt-o 'l.tJ." "7"""; (a) for taxpayers classified as category' A' tax-
I"
V) (110. ..,-oc htp~ <k'l'C Uitl/lun§ f~ljf 'u' payers under the Income Tax proclamation No.
"1-0C h '" r-~ .,.-0i\0Jc f "7.;J-OJ<k 'h'i i\+Q.l,"7~ 286/2002, but are not required to register for
'hll.:r-;J-hlt fuPuP1f11) ..,~:t' fl\.ftllTOJo :t'hll VAT, the calendar month;
h"'r-:f OfOJ?-= (b) for category "B" taxpayers who are required
A) 010. ..,-OCh'P~ <k'l'C Ilit.?:/Ii!fj§ l1-f'~~'J'J0J0 to keep records under the Income Tax
uPlPl:" f'lUf-o uP1I1-o i\1I'/..~H-f~l)f "it" Proclamation No. 286/2002 each three month
..,-oC h~r-~ Oh.-rr-kf f01::" qoP-r OJ~fO period commencing from the first day of the
O;J-hfl-lli\P'AtIJ'} t'LL+Y; OhfDoC'.T HODi Ethiopian fiscal year or when approved by the
"
hoJlIJmC hquPi: fuP1:uP~f +'} 1:fOr: Tax Authority, the first day of the Gregorian
f"7."'mC ffv>lt-r OJC 1.tJ.=
calendar year;
th) 010. ..,-OC h'P~ <I:'I'C Ilitl/IJilj§ O-f'~ ~110Jc (c) for Category "C" taxpayers, who are not
uPlPl-r f'lUf-o uP1I1-o i\"7~H- f~ljf "th" required to keep records under Income Tax
..,-oc h4.r-~ fO~-r quPi:; Proclamation No. 286/2002, the fiscal year.
~OJcJI 11. Assessment of the Tax
1) If, after review by the Tax Authority, it appears that a
Ii" f+C'} "iic ;J-hll hmlt(a'}
person has understated his tax obligation, the
Ii" f;J-hfl- IlAP'AtIJ'} f;J-hlt h"'~,}'lUf-o huPluPl
Authority shall issue an additional assessment.
0:\" ;J-hlt h"'~ i\.hti:A fD7.1QOJc'} :t'tllt hlt'}(\
flt;J-m+ ODt1'~'} f~l(aO-r ~'}~In +(J;},"7~ f:t'tJlt 2) If, for any reason, the books of account are unaccep-
OJcIt~"(atIJAII table to the Tax Authority, or if the tax.payer fails to
submit same when requested by the Tax Authority,
I" f;J-hlth"'~ f'l.Uf-o uP""'-O-r'i ~;Jk M~:t: O"7lf
T~ fOh')f.} O;J-hlt 1li\P'AtIJ). "'}~ ++Il~H' or if no books of account and supporting documents
tJ"1j.,m,.fO O;J-hlt IlAP'AtIJ~ 'h'}JL+CO--f'm~'" are maintained, the Tax Authority shall assess the tax
tJA+lo- OJ~fO f'LUf-o uP""'-O-r'i ~;Jk M~~ on the basis of infonnation available to it or on the
basis of market price of such good or service in the
h"'~ f;J-hfl-IlAP'AtIJ'} :t'tJfI-,} qAOJcuPljf OJ~fO local market or if the market price is unknown, on the
fiJ~OJo'} m,.9'" fh1A..,l\-i:'} fh1C (I)olt'l'10f 'P;Ji
'P;J0J0 f"7~;J-m:" htr~ f-f'(1Dltlt~') f10f 'P;J basis of the market price of an equivalent good or
uPlPl-r O"7Y:'l.., ~DJla'iAII service.
C" 010. ..,-OC h'P~ 01-~ ~110J0 uPlP/':" f't Uf-o 3) A presumptive turnover tax shall be payable by
uP1I1-o f"7,.H- f~l~ u th" ..,-OC h"'r-:f f-f'C,}
Category' 'C" taxpayers who are not required to
"WC ;J-hil O~C'I' ,.m(a'iAII O<l:C'I' fOlJ.ht.ftOJc keep records. The base for the presumptive turnover
1-C'},"iie ;J-hlt ltl\.-r uPlPl-r A10. ..,-oC uPlPl-r
flf~OJo 10:""" 10. ~fDoll tax. shall be the total turnover used as base for the
income tax.
1K' 11£.~~ ~1.t-&\ '1.76.}o.7ILtIJ~'I'C ~l! ;1'UUffP ~I +'} linG ~.9'" Federal Negarit Gazeta-No. 2131'" December, 2002-Page 2028

g. f;t-hl\- flAP'AIlJ') fflmCD- f;l'hil CD-""~ OOlJil;t- 4) The assessment made shall be prepared in an
met' +";J~ A;l'hil h4.~ ,e.ftI1A:: fCD-""~ O'fil;t- assessment notification and be delivered to the tax
met' fooft h- ~L '189" 010. "HIC ~lf~ f:') ;J1.9'1- payer. Delivery of the assessment notification shall
OOIP{.:" ,e.L8tPJA:: be made in accordance with provisions of the Income
?;. f;t-hl\- flAP'AI1}') O')o-il ~').,.'" (li) OOIP{.7o Tax Proclamation.
+a.1.0IJ& f;t-hil CD-ta~ fflm 'h'i f;rhil CD-"1). 5) If the Authority makes an additional assessment
OIJil;t-met' f 1.{.flCD- flCD-OIJil;t- met' CD-Of. (.flCD- under Sub-Article (1), and within 30 days of the
0~ .,.') CD-
il'l' 'h').It h fj:A f + m f.,. CD-') + (J;1,0IJ
&
notice and demand the person assessed does not pay
;t-hil
0 ~ ').,.
,AhLA

'"
1)li
m,e.9" OCD-ta~CD-
00 IP{.:,. ,e."lll ~ ,
ftf. .pt,;t- I1ACD-
ft .,. (.0 'h ') f. U",
the additional assessment or appeal the assessment as
provided under Article 21, the person is in default.
'l'4.+~ ~CD-:: 6) If the Tax Authority fails to assess the tax and notify
}. OILO ~cp~ ~').,.'" ~ OOIP{.:" ;l'hil h4.~ ;l'h"",)
the taxpayer of the amount still due within five years
~il;t-CD-'" hhLA070 fO~7o qoo7o 00a.1.{.7j ~,)il,y.
from the date of declaration and payment of the tax
O?i qoo:" 'UL CD-il'l' f;t-h flftP'AIlJ') f;J-h ')
by the taxpayer in accordance with Article 8 of this
Ah millf .,.& 'l"111 oolf<;.') I1ftil;t-m'" fi'hLftCD-
Proclamation, the tax so paid shall be final and
;t-hil octl)' fOOQ;l.{.7j ,e.U''iA:: U'lf9" ;t-hil h4.~
conclusive. In case where the taxpayer has not
10.CD-') 'I\il;t-m'" m~9" fi'''J.1'O{.O{. f10. OIJil;J-
,.,.{.O 'h') 1.U'~ f ;t-h llftP'AIlJ') 00lJ'i declared his income or has submitted a fraudulent
met'
TCD-9" ft.lt :h"1 f+1.~11CD- ~C;J ta,"1f.CD- ;J-h ') declaration, no time limit provided in any other law
OOlJ'i'TlD-9" 1.H. oomfl') f?,1-ftA:: shall bar. the assessment of the tax by the Tax
Authority.
hfj:A ~t.,,,,
f;rlll\- ~flflfl1l hL'I09° SECTION FOUR
Collection Enforcement
II' f;rhl\- flAP'AIlJ') P'AIlJ')
70 0+ Q;l.0IJ & f;J- h ....
0 fl LJ'',If ~ ft.ft-1- ~ ')"'1- 1- hi' m .,. 12. Powers and Duties of the Tax Authority
fI/\P'AIl)') f"7.h+ACD- P'AIlJ')'.' i'''1f1C ~If (.lfA; In addition to the powers vested in it in other provisions
lie ~O') ~lf~ 0P't. ft~ fOlJlfA 'h'i rll'1ilL89" ;}ftk":" of this Proclamation, the Tax Authority shall have the
f;t-hl\- flAP'AITJ') ~U''iA; following powers and duties:
g. {lI'7I)'TCD-9"ft.ft :h"1 CD-il'l'i':J't.~ fU''t- f:');J1.9'1- 1) The implementation and enforcement of this
0. If <;.9'": f;t- h fIA,... A fi)') noy 'i TCD-9" 1.11. Proclamation shall be the duty of the Tax Authority.
O;t-h il h...,e. f.,. {.0- 0Ij'}~ TCD-'}9" 00"1ft65J.9'1-: 2) Notwithstanding any provisions to the contrary in
fl"1p.."f'i f,£..,11 OD1I1!l"f ft°'1{.;J1'1': any other law, the Tax Authority shall be em-
(J) :h;J If P' A 1lJ'} f + flllJrCD-'} ',,"'1lJ fi]&sP1-
powered to investigate any statements, records and
m1.;t-hil h4.~ f'}"1f: (D~9" f(/D'f P't. (1;J-
books of account submitted by any taxpayer at any
OtTDl\h f'£"111 00"1i\65J.9'1-'): Mp..:f.'} 'h'i
time by:
f'l"1-o 001l1(1:f'} (IJ~9" 10.1)' lDlJ.\'} f"7.fta~
(a) sending duly accredited inspectors to check the
Mp.."f'): /\')",f: f+hOlJ~ ():J'sP"f') m,e.9"
statements, records and books of account, or
Ibfr-'f ():J'9'1-') AOIjootahC'i /\oooocooC:
any vouchers, stocks or other material items at
A) ;t-hil h4.~'} (JJ~9" f'l"'11 001'1f11-') 'hlJ
fl~p..'f') m~9" 00{.1f'} (\"'1"1170 f01/.'ff\CD-') the person's place of business or practice;
(b) requiring the person or any employee who has
m~r 'h~IlO't- ftiDmO.p ~ftk~7o f+flmCD-'}
OI/'}~CD-'}9" f;t-hil h4.~'} "''''IlJ~ o~oo:f access to or custody of any information,
f:t'hl\- flftP'AIlJ'} fP't. flq,y.'f 'h'i u",jlti: records or books of account to produce the
+1~"" AOIJ."'C 0- A70 ft1-.';~ ~ "1fI11 , i\TCD-
same and to attend during normal office hours
1',4:9''f ooAil 'h'M.fl1'iJ' f+fJ",."f'19" MJl.'f at any reasonably convenient tax office and
'h')U+C1I AOI/1:{."1: answer any questions relating thereto;
tit) OI/U;J1f o.:"i f4.~'i,}h O'f,}~ (c) requiring any person including a municipality,
+*9" m~r
fI)<'}9" f4..1.t.A m~9"fhAA OU,}"1P':" body, financial institution, department or
0fJr &, 0.+ t;Q.9"C' OI/,}~(Ocr flCD-(H\..+h l\ agency of Federal or Regional Government to
h4-~ f"t!CD-"'CD-') 00 {.~ (JJ~'I'" f P' to 'h'}:,. 4isclose particulars of any information or
il:J'c\ 1iC1IC 'h'}.It1 Ail AOI/f:{.,? ~'fftA:: transactions relating to a certain taxpayer.
Ir. ;J-hit AODc...,lfl1l V1I:" ilAoo 111
Ii' nlto "').,.,, ')o-il Ji'}"'", (§) f+1. ~1"CD-~., f...,. 13. Seizure of Property to Collect Tax
mn.,. Iflj OI/'i:fCD-9"(lftO "lf~ f+llJftCD- ;t-hil 1) Subject to Sub-Article (4) of tilis Article, if any
f"tLA"'IO:" flCD- n"'}cI'" Hi ')Ooh ,,')+" (?i) person liable to pay any tax imposed by this
1)i '}o-il ",.,." (I) 0+1.~11(Do Proclamation is in default under Sub-Article (5) of
ID"" 0"''''''
IIDIP~:" 'I'4.+~ ;r'r f+11' ~11.1f~ f;J-hl"l- flAP' Article 11 or Sub..Article (2) of Article 21, it shall be
AtIJ') fflU'} :J-hil h4-~ V1I:" 000111 A"tLi\"'IO"-" lawful for the Authority to collect such tax (and such
;J-hil "I)' ,}1I{'of:'} AlID111 f""1.{.1~'} +g;).01/& further amount as shall be suffient to cover the
IDAl AIIDn'L' "'-'l.CD<A A"7t:{.., ih:>'£ P'AtIJ' ~1CnenY_4;of thp. ~~i7.II1?) hv ~i7.inp ;tnv nmrwtv
,,, 11£.lil U.~A ~?tT ?UnJ .1'C Iii ;t'U"tP- II .,., Iilf7G 'H". Federal Nega:it Gazeta - No. 21 31" December.2002-Page 2029

I' lULU ht;:/;\ "L'fJ9'" "ODI11" O"7'i"TlD-9'" 00111.' 2) For purposes of this Section, the term "seizure"
(1011111 ~1"ll1-9'" fTC')}lOC ;J-hil fOlJ."'-t\"1f1-r includes seizure by any means, as weli as collection
lllD- fIT~ 11"11 OJ"9'" 111l"'" o,,~ h0l/..1~ 1'\lD- froin a person who owes money or property to the
;J-hil ODll-flll111 "la9'"t.A:: OlLU "'-1>'" 1o-fl person liable for Turnover Tax. Except as provided
"'-1>'" (r.) ~'i" (?;) 0+~1llD- ODlPl-r I1Arr" in Sub-Article (3) and (6), a seizure shall extend only
Ofl++C OD111 fOO!~:rftlD- fOD 1tt- -rbtf1l 01'l'ImO-r to property possessed by and obligations owed tothe
'UL O"Jf;J- FC f"7. rS 111l.) foo Iff- 1'<lJllC taxpayer existing at the time the seizure is made. The
"" O-l-oo/\h1' 1I:r
0"7.ht;tD10.} 1.H. 01.,. 11\ <lJ1-c;J-1 Authority may request the attendance of a police
~lD-1If;J-h«\- I1/\FAtlJ1 f;J-hh h4-~1 UiI-r nOt.e officer during the seizure. Where the Authority
11O.} 1.", f;r ILiI IP t:.ce.} "I1A ~'M. 1:OSILm.e:j> seizes any property as provided herein ;:;.bove.it shall
"~I\AII 11/\P'AtIJ). hlLU Ol\.e O+ODt\h+lD- have the right to sell the seized goods at public
ODlPl.} Ul1-1:1 h,"O.} -1>1 ,,', ,. hOt~mc hI auction or in any other manner approved by the
("FC) .,.C;.} 1.", 0:\1\ Omt:.~ OJ.e9'" OI1/\FAtIJ). Authority not less than 10 days after the seizure.
O+L-I>1. fl"7'i"TlD-9'" 1\.1\"1.. fl"lD-1111l:" ovii1' except that when the goods seized are perishable. the
,,"fI\A:: ITtj9'" 111l-l: fDtOI\7i hIT" f111l-1:' Authority can sell the goods after any reasonable
I1UC" h<IJ9'".} m-it1' 00'/il111.} +10. ODfl/to period having regard to the nature of the goods.
O"7.;J-fm- 1.", ILii'mlD- ,,"fI\AII 3) Whenever any property on which seizure had been
(, O?'i"TCD-9"f+l" 111l-r /\oPltt- 9'"h11.) frr'iro-'} made is not sufficiep~ to satisfy the claim for which
f;J-hit b.'; /\ODii'L 1 net It.eIT1 f-l>l ~'1.rr~ f;J-h«\- seizure is made, the Authority may, there after and as
I1/\FAtlJ1 h;J-hil h4.'- I\.e f"7.L/\1CJ- f:t'tJfl b.'; may be necessary, proceed to seize other property
~'i" hlLU ;JC f+lltt- A~ A~ tOQ;1.?,"f 1'htt:/\ro. liable to seizure of the person against whom the
~ilh"7.m'i"-I><k 1:lil f;J-hil b.';lD-fD7.Lt\<lJO-r1 (tor claim exists until the amount due from such person,
I\.h""f Ul1'Y."f OD111 ,,"fI\A:: together with all expenses, is fully paid.
§, hlLU 01\" 010-il "'-1>'" (Ii) 0+1.'111lD- 00IPl7 4) Seizure under Sub-Article (1) on property of any
I1A+hLA f;J-hil 6.'; 9'"h11:" 1-C1l-r 00111 person in default with respect to any unpaid tax may
f"7.:r/\lD- f;J-h«\- I1/\FAtlJ1 Ul1-1:1 fool11 utt{l
be made only after the Authority has notified such
~ 1.c;/\lD- ~ iI-I>1:1JP/\;J-h iI h4- ~ th-t;: t) fl;r to<I'ro.
person in writing of the intention to make such
°'"
0:\1\ "IT'i"AII OlLU '}.e~-1- f"7.llmtD- "7fl;J-OJ<t1
seizure. The notice shall be delivered not less than
Ul11: hODItt- hI!) (lll\l't) -1>1 Ok-1- /\;J-hil h4-~
thirty 30 (thirty) days before the day of the seizure.
IL1.ClllD- .e111~11
5) If the Authority makes a finding that the collection of
~. f;J-h(t. I1/\FAtlJ1 f;J-hl\-1 "lll1ll11 fOtlf.'i:"t;:
the tax is in jeopardy and demanded for immediate
l1-~;J- OD'f~1 f"-l.l; 'h11.IT'1'i 010-fl 1\1-1>'" (li)
payment of such tax (without regard to the 30 days
f+t1D/\h+lD- fl!) -1>1 f1.", 11.11 tt"mO:" :J-tJ(}.
period) provided in Sub-Article (1) and )4) upon
to.Il!lD-). ~1JlhLA /\O?1:l" 1'14: t}-I>lO
failure or refusal of the taxpayer to pay such tax,
~1Jll1-9'" ;J-hil h4-~ /\ODhLA U,e.'i'/ t}Arr'1
collection of the tax by seizure of property before
111l-1-1 OODI1I ;J-hil fODlll1llO" "L'89'" ~;Jce
such period shall be lawful.
"IT'i"AII
6) If a seizure has been made or is about to be made on
I' "7'iTOJ.9'" 111lT f+l" to"9'" ~1Jl11l f;J-I'\O hrr'1
any property, any person having custody or control
iI/\lLl1- 111l-1- O?illj{ f"tlf" tof,9'"oo",/\65J, fIn
of any books or records containing evidence or
ll~1: to"9'" OD1I111 o~~ f"7.'I:OS to"9'" O<h1'1'~
statements relating to the property subject to seizure
FC 1/\ "7'i"TlD-9'" llOJ. O:t"hll. I1/\FAtlJ1 1'14:
shaH, on demand, exhibit such books or records to
ll.-I>Cl1/\-1- ll~~ 1 to"9'" OD1I10-1 /\O?flljf'1-r
O?.}>ll1 "/\0-1-:1 the Authority.
Ot;:C1: 0.-1- -1-6"11 f+hOltO"9'" O"L~~9'" ,,~ 1/\
7) Any person in possession of (or obligated with
l'
t}AIT~ Oil+-I>c O?'iTlD-9'" respect to) property subject to seizure shall, on
to"9'" (I'PiI+'i" f+l"
O:t"hil 9'"h11+ f+ln 'Hll+ o~~ f"7.1~ OJ"9" demand, surrender such property to the Authority (or
/\:t"hil h4-~ "7'i"TtIJ"9'"..,1..:t" 1/\0+ lllD- f:t"h«\- discharge such obligation), except such part of the
I1/\FAtlJ1ll.mUlD- fl"lD-1 U-O-1-/\:t"h«\- I1/\F property is, at the time of such demand, subject to a
AtlJ1 f"7i1lh-fl tD"9'" 1/\0+1 "l1..:t" fODL'lt.9" prior secured claim of creditors and subject to an
attachment or execution under any judicial process.
~"k ~-1-"/\0+::
t, "7'i"TlD-9'" l1lD- f:t"h«\- I1/\FAtlJ1 ll.m"-I>~ 8) Any person who fails or refuses to surrender any
property subject to seizure, when demanded by the
"'1:' f+l" 111l-1- /\"7i1lh-fl Uf.'i'/ l't.err1
f-l>l ~11.1f~ O+I"lD-1-f1lT ODm1 O..,A +mlet Authority, shall be personally liable to the govern-
,,1f'i"Alllftj9'" "'mlet~-I: /\1-f1l-l: OD11I9'"tJ11T ment in a sum equal to the value of the property not
hlf~ro. f:t"hil 6.'; ODm1 (O:t"h(t. 6.1; 1\" f"7.:t"ll so surrendered, but not exceeding the amount of tax
Om-1 dJ~ ~'i to/\1: ~,.,C') t\.1At;: ",,"fA9"1I for the collection of which seizure has been sought
(together with costs and interest on such sum).
I' O'O-h ",-1>,. (t) h"'OII/\h"'lD- f..,A "'mlet~-r
0"'~"7~ '-flli:' fl"m- ltm-'-flli:' i\"7i1lhl1 9) In addition to the personalliablity imposed by Sub-
U1."1 IAIf~m- I/\Oet ,.,!1".}o hlf~ 010-il Article (8), if the failure or refusal to surrender is
",.,.,. (~) OIIlPl+ f"7.L/\1lD-' f""-fI ODm1 2 without reasonable cause, such person shall be liable
TCll'+ (Y9'"l't 0011"') O"'Q;I."7~ ~1.1lht;:A for an additional charge equal to fifty per cent (50%)
Ml.;Jl\fJ of the amount recoverable under Sub-Article (8),
,.. l1ti L1.1rA. ";1&-1-.nLtIJ rII'1'Cftli :hJ"IP' ftl +, Iif1~ ,.9". Federal Negarit Gazeta-No. 2131"December, 2002-Page2030

OlltJ h,}"''' OOIPt.~ O,etl;rlD- P'C fAlD-'} ,}11t.~
I'
fltt.hO m,e9" O;J-tJlt h4.~ f"'l.LA"lO~'" 1,}"11
h;rtJ{}- ClAP'AlIJ'} O+mf"'lD- OOIPt.~ 10. f1.t.1
O7'iTlD-9" (\lD-ttltt.hOlD- ') "1I..}' m,e9" 10. tt1.t.1lD-
1,}"11 ;JC O-l-ff" f;rtJlt "l~:ND''} ClA-I'mllJlD-
;r tJ It h 4.,e m,e9" O7'iTlD-9" 1\." (\lD- h "'l.6'.A"l 0 ~
()J; m,e9" ttAO~ "l~;r ." ,e1F'iA::
10) Any person in possession of Ithe property of a
taxpayer in default and who surrenders such property
or pays the tax in occordance with this Article to
which the owner is liable, shall be discharged from
any obligation or liability to the deliquent or to any
other person arising from such surrender or payment.

oo11~ 'I' f4:

14. Preferential Claim to Assets
Ii' ov ~ ",e f"'l. "'C11 f"'1.9"~"~
1) Subject to the prior secured claims of creditors, the
Ii' CPlt~'i f-l-(\lIJTlD- fl\.f\o"f hOJ;~?J"f f:"f:"'l.f
0011~ ~,}1.-I-mO'" IFlf-=OlltJ hCP~ OOIPt.~ ;rtJlt
,Authority has a preferential claim upon the assets of
-I-h4.,e h"'l.IF,}O~ .,.') h '}It.,. -I-h~A" ~lthhA"'O~ the person liable to pay the tax until the tax is paid
'Lit f:t.lt ;rtJlt foutJLA "l~;r ClAO~ (\lD- U11~ from the date on which tax becomes due and payable
",e f;rtJ{}- ClAP'Al1J'} f"'1.9"~"~ oo11~ under this Proclamation.
,elf t.CPA:: 2) Where a person is in default of paying tax, the
I' O7'iTlD-9" (\lD- :t'tJlt footJLA "l~;rlD-') ClAou Authority may, by notice in writing, inform that
mllJ~ '1'4.-1-;;: IFlf f"'17 ~,}f,lF" f;f.tJ('t- ClAP' person of the Authroity's intention to apply to the
AlIJ'} O'l'4.~ 9"tJ'}l~ fA-I-hLAlD-'} ;rtJlt ~'i Registering Authority to register a security interest in
;rtJ{}-'} A07lthLA f"'l.1.t.1lD- ~ '}:''It.4' (I, f"'l.flth~ any asset which is owned by that person, to cover any
AlD-'} m{;L1,O7lthLA ~'}.It~A f;f'tJ('t- ()J; f"'l.LA unpaid tax together with any expense incurred in
"l0~ (\(1)0V11~ OCPlt~'i -I',etl ~'}.It.f.,e ,)11t.-I:'} recovery proceedings.
AOOU10lD- httA f')""~ ~()"1f fO'/..(\'I' oolF.,.')
3) If the person on whom a notice has been served under
f"7.1A" O7ltm'}.,.<tf A-I-OO"1fllD- (\lD- ,e(\lIJA::
Sub Article (2) fails to pay the amount specified in
r. O'}o-lt h'}+" (I) f-l-1AOlD- O7ltm'}.,.<tf f1.t.(\lD-
the notice within 30 days after the date of service, the
;rtJlt h4.,e O7ltm'}.,.<tflD- 01.t.(\lD- Oc!).,.'} m-lt'l'
;rtJ{}-'} fAhLA ~,}1.IF" f;rtJ{}- ClAP'AlIJ'} Authority may, by notice in writing, direct the
A,}-ot.~ ou1f;Jo.m. flAP'AlIJ'} f-l-OOU10m- (\m. Registering Authority that the asset, to the extent of
V-O~ ClAThLAm. f;rtJlt ()J; oom') OCPlt~'i -I-,etl the defaulter's interest therein, shall be the subject of
~'}.It.f.,e ~M1f ,e.OllJA:: security for the total amount of unpaid tax.
O'}o-lt h,}"''' (() OOIPt.~ f;rtJ{}- ClAP'AlIJ'} ;rtJlt 4) Where the 1).uthority has served a notice on the
i'
f"7.LA"lO~ (\m. Y11~ nCPlt~'i -I-,ett ~ 1.!l.f.,e Registering Authority under Sub-Article (3), the
~()"1f f(\m f1.1F')-=oP1f;Jo.m. ClAF'AlIJ'} O7'i:f Registering Authority shall, without fee, register the
lD-'}9" tJ~1 ",em,e:" '}-ot.-I: OCPlt."''i ~ '}.IlJ'1f notice of security as if the notice were an instrument
f1.l(\m.'} ~()"1f ~ ') 1.OV/'iTm.9" OV11-1:",e ~ '}J;A . of mortgage over or charge on, as the case may be,
fool"'- (\H~...f.OOU"lClA::.,.1.9" f1.A f-l'om fool"'- such asset, and such registration shall, subject to any
oo-o~ ~,}1.-I-mO'" IFlf-=fCPlt~'im. 9"1I1C1f"7.LA prior mortgage or charge, operate while it subsists in
1m.') ;rtJlt A07lthLA OO7'iTm.9" OOAn- O~"l
all respects as a legal mortgage over or charge on the
~,}1."",(\m 001"'- m,e9" 'h'}1.07'iTm.9" 1\." ()J;
asset to secure the amount due.
m,e9" h~llFlf ,e.f.mt-A::

:J-hlt h4.~ It''AlD- '1'0.4' 15. Taxpayer's Safeguards

I~'
OlltJ h~A § OOIPt.~ f+l" ,}1It.~ Any property seized under this Section 4 shall be seized,
"7'iTCD-9"
f"7.1Um.f f"7.mO.,.m. -=~'i f"7.OD"10(l)c O;rtl{}- ClAP' held, and accounted for only by the Authority. No other
AlIJ'} -o~ ,e1f'iAu O7'iTm.9'" 1\." fOO'}"'P'~ h\1A agency of the government may require the property
OlltJ h~A OOIPt.~ f-l'IUlD-1 ,}11t.~ O7'iTm.'}9" h." seized to be transferred or given over to it for any cause
9"h,}I.}- OOIP t..}- 007,(-t..., ~ ') .ltf1mm. m,e9" ~ '}.It-1'''A whatsoever. If any property seized is sold, any portion of
~A.}- ODmf:" h,e'fA9'"1I f-l-I" '}1It.+ f-l-ifm ~,}1.II''' the proceeds in excess of the person's liabilities shall be
h1ilall h-l-17lD- 1'}U-o m.lt'l' ;rtJlt h4.~ h"7.LA"'O+ returned promptly to the owner.
6.41 Ol\.e fll'~lD- 1'}UlI A'}lIt.-I: ClAo..}- m.ltlfD-'"
~A"AII 16. Duties of Receivers
1) In this A..rticle"receiver" means a person who, with
II' f"'~\1o. ..,1.:J- respect to an asset in Ethiopia of a registered person,
Ii OlltJ h'}.,.W lD-lt'l' "-I-t.\10." "'IA.}- Oh..}-,.kf
CD-l\'rf"'l..1~'} f;rhlt hof.~,} VlI.}- O-l-ODAh-l-f is:
v) fh-Cl'}1 n-o~+ htil~ II'cr f-l-(\fODf (a) a liquidator of a company;
A) h~Cf: 0.+ (Do~ tD.ef" O~f: 0.+ f-t-l"OD (b) a receiver appointed out of court or by a court;
"'~\1o.f (c) a trustee for an unrehabilitated insolvent;
th) Oh.Uft- ID-lt'l' f"'f.1~'f:C~+ QAh1.t-f (d) a mortgagee in possession;
-) (III"'" O"";l-CD-JPC f"t1~1 (e) an executor of a deceased's'estate; or
IP) f"..,., (aID-')-o~+ f"'l.J'lt-l-.-sf:CI OJ.e,.
 ,t
,~ litc9li L1.J,.1\ ~.7t-r .7",11).'I'C ~li :1"U"lP ~I"" !iin~ '-9"- Federal Negarit Gazeta - No.2131 December, 2002-Page 2031

l) O;h.., "ftt-;I- f"'t\lD-1 (}lD- f1..,.(- F (,. fUWJ.f (t) any other person conducting a business on
11'£,(-: behalf of a person legally incapacitated.
O'/ljTlD-1JO (}lD- ~lD-1I 2) A receiver shall notify, in writing, his appointment or
I- Oh.-rf"kf lD-ll'l' ft\ 111l.} +ll1fl. Iftj f+7ioo his possession to the Authority within 14 days after
mf,1JO 111l.} Of.fI;I'lD- FC f+1.l1 .,..ll1fl. h.,..7i having been appointed to the position or taken
ooO-r mf.1JO 111l-J: Of.fI;I'lD- FC h.,..1.l10.} possession of an asset in Ethiopia, whichever first
h o-t\ -J: h.,. 1.00 lD- .,.1 1.1JOr: 0 I g .,.1 1. H. (I)-II'I' occurs.
f+7ioo mf.1JO Of.fI;l-lD- FC fl\. OOIf)'1 t\;l-hft. 3) The Authority may, notify a receiverin writing ofthe
qt\F~1I)1 O'/ll;l-m:t ht\O.}:: amount which appears to the Authroity to be
i:' f;l-hft. qt\F~1I)1 111l-J: O+lttfl.lD- f.fI;I- FC ft\ sufficient to provide for tax which ii. ur will become
(}lD- fO'l.Lt\..,0-r1 f;l'hll b~ t\ooi'iL 1 fUWJ.fllLA payable by the person whose assets are in the
1lD-1 f11Hl1 oom1 t\+ll1fl.lD- OX-,h.'f: fll;l' possession of the receiver.
lD-:I'A:: 4) A receiver:
g' +ll1(llD-: (a) shall set aside, out of the proceeds of sale of an
U) 01D-ll h1.,.R"' (i:) oolPl.} O;l-hll qt\FAII)). asset, the amount specified by the Authority
f"'1t\OlD-1 f11HlI oom1 mf.1JO hO'/ll;l-m under Sub-Article (3), or such a lesser amount
ctflD- O:).It 01l9'"1JO~-rf+1.l(}0.}1 "'1\ f11HlI as is subsequently agreed on by the Authority;
oom1 h111l-J: 7if~ I\f. .,.1(\ t\1I~lD- fll.,.
(b) is liable to the extent of the amount set aside for
IJOII) A::
the tax of the person who owned the asset; and
t\) .,..,.1(\ i\1I~lD- O+",oomlD- f11HlI oom') Ah
(c) may notwithstanding any provision of this
fTlhOlD- 111l-r f1t\n..} hlf~lD- (}lD- t\O'I.L
Article pay any debt that has priority over the
t\1(Do f;l-hll b~ +mfct f.lfljA::
tax referred to in this Article.
tit) OH.U h'}"'X- f.,.oofth"'lD- fl.tjC9" h;l'hll
5) A receiver is personally liable to the extent of any
"'1.IJO-r~-r ft\lD-'} 0'/'iTlD-11JO b~ t\.h'f:A
y,':fl\I:\:: amount required to be set aside under Sub-Article (4)
for the tax "referred to in Sub-Article (3) if, the
~. +ltlfl.lD- (l1o-11 h1"'1\ .(i:) f"'m"'(}lD-1 ;l'hll
O.,..oot\h.,. 01o-il h1.,.X- (g) oolPl.} +.,.1(\ receiver fails to comply with the requirements of this
t\1I~lD- ~ 1-'t"'OO'l' f.,.f.l1lD-1 f1')H1I oom1 OH.U Article.
h1.,.X- t\+m"'(}lD- ;l-hlll11\CPt\ ++1(\ 1\.1I~ 0.,...,.
OOmlD-11HlI Ah OcqA +mfct f.1f'iA:: 17. Notification of Changes
A registered taxpayer shall notify the Authority, in
Ii' t\ (Do(I1"f1 it i\0'/ ll;/" m:t writing, of
O'/liTlD-IJO;l-hll h<f.f.:
(a) any change in the name, address, place of
6' llao-: h.(-t,.?fw- : f1..,.(- FlrlD- (1;1' : hf.l~1.-I::
business, constitution, or nature of the principal
(Df.l}" ;l'hll fO'l.hLAfI-r') CP1~lD- f')..,f: p(,.
., ,q(,..} taxable activity or activities of the person; and
~ 1:"Il:l'ft mf.1}" fO'l.fh'ilD-C;:flD-1 (b) any change of address from which, or name in
'f.~-r: which, a taxable activity is carried on by the
(,.
I' ;l-hil fO'l.hLAO.} f,)"',(- F h 1:t{I:I'(l, fO'l.h'i"m registered person,
') 11-r1 h'(- (,.?f m f.1JO it IJO:
f.,.fl ~1f.1f~ f.U1). Ii;l'hft. qt\FAII)1
within 21 days following such change.
0116 4>'i":r 1.H.
lD-il'l' O'/ll;l'm:t ht\O.} :1
SECTION FIVE
Appeal Procedure
h'f:A h9"ll-r
f...,q~ fO'l.+ClI 0'-'" P'Cf}-r 18. Review Committee
fhn.-I::t' hll)& POt-l; Members of the Review Committee shall be appointed by
I~'
fM1.-J:~ hll)& taO'l.-f: hql\-} O;l'hll qt\FAIIJ). ~I\k the Minsiter of Revenue or the competent authority of the
h:t>t-fl.~-r h'1.h..,qll~-J: 01fl.9'"f DI/.~Il:"C mf.1]" regional government, as appropriate, upon the recom-
h..,qllll"lD- fhAA t1l\P'AII)'} f.(}fD7lt> :: mendation of the head of the Authority.

Ii' f h n.-J:;1-1\11)& ttO'l.""lD- llt\ 0'1.tj llD- FA 11)1'i" .,..., '1C

19. Powers and Duties of the Review Committee
i' 1'10'1.
i:lD- "'m& ~1: t\;t'hft. qftFAtlJ1 Iftj :
1) The Review Committee shall be accountable to the
U) O;l-hll h4.f""f oo"'Al ~1-'t~1t i mt\.(- .,.&
head of the Authority and shall have the following
~1~t..., mf.1JO f;l-hll ..,,.;1- ~1-'t?f?fA
duties:
f"t.,.Co- O'/ooAh;J=$P"f1 t\OOODCooC'i" lD-It). "

(a) to examine and decide on all appolications

t\ooilm."f' i
Ii) h"'lo-+ ho.-I:;I'P"f ?C "'11-~+ fl\TlD-1
submitted by tax payers for compromise of
O'/ljTlD-11JOf1\,h.'f: ~hl)f~"f mf.1JOODl7f9'"f
penality, interest and on the tax assessed;
OD(}-fI(}lI! (b) to gather any written evidence or information
th) OV-CODt- It,. f""I:'-flD-"} ~.e. O"7.ODtm-r l1.(- relevant to the matter submitted to it;
(c) to summon any person who directly or indirec-
"'Cfl f"tm''''lD-"} 1'14: ~1-'tODAIl h;l-hf\-
hmlt(}"} .;:JC0"''1';1- m,.". "''I';/'' qAIf~ 0011.(- tly has dealt. with the assessment, to appear
""}1-~-r 1l\1D<"},,"~1O-1" (}lD-fOD1't--r I before it to answer questions about the case
underi~investigation;and
 ,.,.. Federal Negarit Gazeta-- No. 21 3111December, 2002--Page 2032
1W lit01 U.~A 'I;Jt+ ;JUtIJ .'1'C ~li :,"U"IP' trl+' Iin~

00) f;J-t)(\- I1AP'A"" fltllllD- f;J-tJlt lD-Uf~

..,.tJtJ A'1 If.,..,." 'h e; f.U11 h cp~ lIl-o ~ f .,.ltlll (d) to review the accuracy, completeness, and
compliance with this Proclamation. of the tax
00"''''' fll'/ ~;J11' I
P'Atq') f.1f~i'1A II assesment made by the Authority.
I' f M1.oJ:;J- h llJ~ \1°'.-1: h;J-tJ It h 4-f':f f"7."'C 0 lD-1 2) The Committee shall only review applications
M1.oJ:;J- A./f. f"7.:fAlD- ;J-tJlt h4-~ f;J-tJlt lD-It~ submitted to it within 10 days of receipt of tax
11'/It;J- fD~1 01.llt lD- 0 I .,.e;:,. lD-lt1' M1. oJ:;J-lD-1 assessment notification.
l1+l0 "lD- II 3) The Head of the Tax Authority may approve the
f:' f;J-tJl1- I1AP'AII!1 ~"4. f\1"7.-I:lD-1 flD-It~ Vlt-o recommendations or remand the case, with his
A.11.1:+lD- fDf.9" OlD-It~ vitO- I1A.,.ltll'/lI'/ 9"tJ1 observations, to the Committee for further review.
/1:1 ooo"'A~ .,..I;~ 'h11.1e; 'h1Jt;J-f. A\1"7.-I:lD-
A.OOlAltlD- f.:f"1A11
20. Waiver of Penalty
S' oo"'oi5j,1 ItA11'/1It""
., h.., 1111 The Review Committee may waive administrative
\1°'1.:1:lD- 'h 1 1.h.., 11-0 -I: f1 n.9':f "7. t It''''C fDf.9"
penalties, wholly or partly, in accordance the directives
IAlD- ftJlA/A I1AP'lAllJ1 0"7.1fDllJlD- 0000~1 OOIP~""
to be issued by the Minister of Revenue or by the
O;J- tJ It h 4- ~ "f. f.,.llJ AlD- h It .,..1;1.~ ce oo+oi5j, 0 ao-
"" competent authority of the regional government, as may
mf.9" Oh4.A 'h1Jt.,ltll'/l:~'" f.'f"1A 81
be appropriate.
~li' f."'"~
li~tJl1- I1AP'AllJ1 f"'''ALtD-1 f"'Q;\,II'/~ ;J-tJlt
lD-It~f"7.ft'fDlJO1I'/e;:flD-9";J-tJlt h4-f. f;J-tJlt lD-It~ 21. Appeal
II'/lt;J-fD-t1 h1.~ltlD- fDf.9" OM1.1:;J- hllJ~ \1"7.-1: 1) Any person who objects to an additional assessment
t1Jolt~h.,.ltm 0"" .,., "f.9" (: 0 c!)(IP" It) +e;"" lD-lt1' made.by the Authority has the right to appeal, within
nI1AP'AllJ.,. f.,.wlt)ID-1 "'Q;\,OI/~;J-tJlt Y noo", 30 days from the receipt of assessment notification,
('1,..1t TClt''''') I1AP'IAII'). I: 0.,lt111 t\,...,q~ or from the date of decision of the Review Commit-
"'
It'''l. "'"~ f."lI1~ fll'/:"~-o oo-o-r hAlD- 81 tee, to the Tax Appeal Commission by depositing in
I' OflU h1+'" 10-lt 1\'+" (Ii) OOIP~:" ff."'"~ cash with the Authority 50% (fifty percent) of the
M1.1:;J- +C!' f..,-oC f."'"~ .,.ql\. ;J-tJi'I h4-~ additional tax assessed.
n"'~""t f.,.mlt.,O"'" ;J-tJlt Oao-A-fD1-9"Oh4./A 2) If a person appeals in accordance with Sub-Article
foohLA ..,1.:1- 'h1.1;l\O'-'"lD-It~hltlllO:" +1 h1it.,. (1) and the Tax Appeal Commission determines that
00 iP"Uf +1 1.H. lD-lt1' ;J-tJlt h4-' fOl/.,LA..,O"'" the person is liable for the additional assessment, he
.,.Q;\,B'/t ;J-hlt I1AhLA 1'4-"'~ "lD- II
shall be in default unless he pays the additional
f:' OtI.U h'+'" 10-it hi.,.", (Ii) O"'OOAh"'lD- 1.", assessment determined by the Tax Appeal Commis-
lD-lt'l' .e."'Q~ 111A+~0 fjl1j\P'AllJ.,. f"'fDMm- sion within thirty (30) days of the rendition of such a
"'~II'/~ ;J-tJii ..,.tJtJA2j=e;fOOQ;\,~7ftrlf fDJtIw-", decision.
"'h4-.e. f.tre; IA II 3) If no appeal is made within the period prescribed in
g. fllt) h1"'~' 1tN" h'+'" (Ii) Y:');11. 'h11."'lIlO.,.
111ft 010. ..,.,lC hCP~ ltAf."'"~ f1'~""'" h1.,.P'.f Sub-Article (1) of this Article, the Additional
'h11.h..,I1-o.,;J-TlD- OflU h'f'~ OOIP~:" f"'fD(a"" assessment of the tax made by the Authority shall be
;J-tJf\:f'} O"'l.ooAh'} A"7.+Co- f."'lI17t:f .,.L''''I. deemed to be correct and final, and shall be
f.1Te; A- II immediately payable.
. 4) Without prejudice to Sub-Article (1) of this Article,
SI' Mltl.l;"" ~"4."""
f-t'fDc"t"lD- ..,l1C 01l:J;A fDf.9" f;J-hc"t- QAP'lAtrJ' the provisions of the Income Tax Proclamation
fc"tllllD- co-It~ ..,.htJA h1-1.A9" O"7.~ O"7.+C-o-tJCt!C relating to appeals shall, mutatis mutandis, apply to
. appeals regarding taxes imposed by this
f"7it~.cs1: ~"L""" f1'fDl1"tD-1 ;J-tJl\ fDf.tp fl1AP'1A
tfJ.,., lD-It~ f"7.ft'fDOOlD- (alD-f.tre; IA II Proclamation.
22. Burden of Proof
tJ ti:A It.(- It'''' The burden of proving that an assessment is excessive or
hlt.,.JS~~ce :"llJ.,..:f that a decision of the Authority is wrong is on the person
objecting to the assessment or decision.
f1fih;J-mcf:n 01.tt. I1A"'I:"~-o ltA~~_(J'J" :"llJ:"
~r' f:t'hh SECTION SIX
i' OJUJ h'P~ Ot\." h\».:\1 'h1JtL1.9" h"'fD(a'tm- Administrative Penalties
ota.,..,.C t o.,.mlt"lD- 1.tt. lD-h'1' f;J-tJlt "'Ih;J-fD:"
23. Penalties for Late Filing
..,1..;J-lD-1 IA"'lDllJ ;J-tJlt h4-f. 1\""'fO"" A'h11
1) Except as otherwise provided in this Proclamation, a
.l;1~ tOC mf.r ffD~ h4.A (Ur~lD- "i.fI. f 1/A.,.hL
person who faiis to file a timely return is liable for a
AlD-") ;J-hi\ ~ OOD'" (h9"ta:r 'TClt,..,.) S~ OOD'"
penalty equal to 5 per cent of the amount of tax
("II "SJOlt"" 'TC(a1T) 'hlttt/I"" .(-~lt 00+MiJ.
underpayment for each month (or portion thereof)
f.n~i\A .aJ
fDf.1f6 f(j)~ during which the failure continues, upto 25%
I' f:J-nlt #flt;J-mcf:1 oo:"l'il 11/\0:" fDC
tJti:A Otr'lfDo 1.tt. f;J-hlt OI/l\;rfDcf:II"+lO c"tCD- (twenty five per cent) of such amount.
OIlU h 1+Jt 10-lt h ,+ Jt (Ii) 1:1 ;1'1. ODei' G"" 2) The penalty under Sub-Article (1) of this Article is
flPll.h~AOJo oo+Ri h-oc y it (Y9"1t1(U)hf.OIA'1'9" limited to 50,000 Birr for the first month (or portion
II thereot) in which no return is f1led.
r. AllI' h1+'" hL'IJ9'" IA.,.hLA ;J-hlt ~lD-f"7.I1j\lD- 3) For purposes of this Article, an u~derpayment of tax
O;J-tJlt "711;J-1Dcf:1"f. oo;J-f"" O.,OlO"" 'he; ;J-tll1- is the difference between the -tax required to be
oohLA QAO"" .,., O-rb4f.AtIJo ;J-tJlt ODl1hA IAtIJo shown on the return and the amount of tax paid.by
IAf..,:" 'l tIJo.. the due date.
1A" 11t0r Uwt-A. ~;JtT ;Jt&.'"4t'l'C Ii :1'u..,,.. II"" Iiif2~ ,.f'". Federal Negarit Gazeta-No. 2131- December, 2OQ2-Page2933

g' O"'l'iTOJo9'" IJ-).;J- f"'l..ll)hOJo ~Il)-r +'1'1\- h"'OOh . 4)

hi:-1r h1l :,..,.~ 0J0 1'1l. h~I1"J9'" !
U) .fic I 1(u (1\P'C 1(u l1C):
h) O;J-hl'1 "'I1'1;J-m-tJ' I\~ OOOOAh'}- h~OlO.}-
. f;J-hl'1 oom1 f 000"" (1\11: 00"" TC(}1.}-)1I
~g' H..,U O.,.hLh ;J-hl'1 I\~ I'1h"'l..;J-(}l1mh1:
U) oohLA O~OlO-r1.tl.I\A"'hLh ;J-hl'1i oohLA
h~OlO-r +1 ~l'1h"'hLhO.}- +1 l}hOJo 1.tI.
0J01'1'1'
;J-hl'1 h4-~ mh1: foohLA ..,1..;J- 1\hO.}-1I
M OltU 1\1+1\ 10-1'1 h1+1\ (U) oolPl-r f"'l..h
LhOJo mh1: f"'ll'1hL! Ah l}hLOJo f~l1 ~OO..,.
01..,1: l}1haT I'" &- I\~ O'PhOJo hc;:"'~OJo
f"'101.~J' mh1: 9'"1l))'1\~ ~~ 000"" ('/ J' h9'"l'1.}-
TC(}1-r) ;J-hl\-O.}- ~1F'iA II
In any event the penalty may not be less than the
.
smaller of the two amounts:
(a) 10,000 birr (ten thousand Birr);
(b) 100 percent of the amount of tax required to be
shown on the return.
24. Late Payment Interest
(a) If any amount of tax is not paid by the due date, the
person liable is obliged to pay interest on such
amount for the period from the due date to the date
the tax is paid.
(b) The interest rate under Sub-Article (a) ofthis Article
is set at 25% (twenty five percent) over and above
the highest commercial banks, lending interest rate
that prevailed during the preceding quarter. .

SECTION SEVEN
hC;:A (}l}-r
Criminal Offences
fm11:A :"1l)""T
25. Procedure in Tax Offence Cases
~~. O;J-hl'1 I\~ f"'l..Leao- m11:I\-T I'1h"'l..oo~O-r P'~ A tax offence under this Section is a violation of the
P'C~-r . criminal law of Ethiopia and shall be charged,
OltU htt:A f"'HI.H~-r O;J-hl'1 I\~. f"'l..J..Oao- m11:I\-T prosecuted, and appealed in accordance with the
ffD11:h~ ...:,...ih.,.., 000.,.1\I\tt: f"'l..LBao- OOOIF~h()' Ethiopian Criminal Procedure Code.
. f"'l..oolPl.,.OJo f f"7.;J-fOJo ~'i~..,l}:OS f"'l..+COOJo Om1
1:h~ 00:"" ih.., 1"''' P'C~-r ODlPl-r ~1F'iA II 26. Tax Evasion
ft. ih.." 0-1l)1'1 ;J-hl'1 I'1l\hoohLA A person who evades the declaration or payment of tax,
ffiO(}00J01 ;J-hl'1 J'1\1'1;J-fD+ m~9'" f"7.Lh..,0-r1 ;J-hl'1 commits an offence and, in addition to any penalty under
J'AhLh tI'f'iTOJo9'" (}0J0fD11:A ~11.LBoo ~~m&-A II Section 6, may be prosecuted and, on conviction, be
I'1hlF.,9'"OltU h'P:f htt:A 1; oolPl-r h"7.liJAO.}o 00+65J. subject to imprisonment for a term of not less than 5 (five)
O.,.Q;1."'M 'I'4-"'~ 001F~ OC;:C.(-o.-r (}.l:J1'1' h~ l}oo.}- years.
0"'l1'J1'1 ~P'&--r ~+Il)/'\ II 27. Making False or Misleading Statements
. 1) A taxpayer who,
n. fth(}.}- m~9'" h""T ool)l' I'1A"'I:"ll1
6, DfI'i:ftDotr;J-h 1'1h"~ (a) makes a false or misleading in a material
u) h;J-h(}. l}hP'AIl)1 IP&-"'~ h11:1 ~'I'11 0"'00 particularstatement to a tax officer of the
hh.,. fU(}-r fD~9'"h""T ool)l' l+l0 i m~9'" Authority, or
h) h;J-h(}. l}hP'AIl)1 IP&-"'~ t\.+ClI h"'l..1l}0J0 (b) omits, from a statement made to an officer of
ooel,h.. 0J01'1'1'00..,h"0J01 t\.f1.C.., the Authority, any matter or thing without
h""T which the statement is misleading in a material
O"7.TA h\\:\1 oota"'-r f"'l..1l}T0J01 '1'1'(lT
.
particular.
J'1'1+l "'1.IF~f
commits an offence and is liable on conviCtion.
ffD11:A hl'1 ~lPl-rO;J-AII
2) Where the false statement or omission is made
I' f th(}-r 00"'''''0J0 f"'(}mCD- m~1JD ool'}.,..}-
without reasonable excuse,
f"'l..1l}0J0 ~'I'1I f.,..,.mOJo J'hO-t 9'"h1 f.}- fin
(a) and if the inaccuracy of the statement undetec-
~11.ii'~f
u) fOO..,""OJo -rhhh~ IhooIF1 t\..f.lI'10.}- ted would have resulted in an underpayment of
tax by an amount not exceeding 1,000 Birr, the
. Ift-~tr t\.hLA f"'l..1l}0J0 ;J-hl'1 hllC 6 1(11
taxpayer shall be subject to a fine of not less
O"'l~OA'I' h1(a ~1JlhJ..A f"7.!1.C1 hlF~
than 10,000 Birr and not more than 20,000 Birr
;J-hl'1 h4-~ hofiCI 1(u 0"'I1'J1'1 ~'i hllC ~ 1(u
-and imprisonment for a term of not less than
O"7~nA'I' f11HlI -+.. ~'i hh'.(- ~oo.}- one (1) year and not more than three (3) years:
0"71'J1'1 ~'i hY'l'1-r Ii--r O"'l~OA'I' ~P'&--r
and
UIIJAII
(b) if the underpayment of the tax is in an amount
h) h1(a ~1JlhLA f"7.1.l1d)o ;J-hl'1 hllC 6 itu
. exceeding 1,000 Birr, to a fine of not less than
f"'lOA'I' hIT" h-f1C ~ 1(u 0"'lJ'11'1~'i hl1C 20,000 birr and not more than 100,000 Birr,
lif1(u O"'I~OA'I' f11HlI 00+" ~'i" hY'I'1""
and to imprisonment for aterm of not less than
~--r 0"71'J1'1~'i hhrl'1-r Ii--r n"'l~OA'I' three (3) years and not more than five (5) years,
~P' &--r ~+IIJAII 3) Where the false statement or omission is made
r.fth(}-r -..,h.. f"'''mOJo tlJ~'" -ta"'-r f"7.1l}0J0 knowingly or recklessly,
"'1'-(1 ~1...ta.,..:t- IA.,.1.l10J0 1T1 1'of1l\- m~9. (a) and if the inaccuracy of the statement were
Ohl}.(- TA.,.:OS"-rflF., ~11.If"f
undetected would have resulted in an under-
v) f-..,h..OJo -rhhh'i' Ih-1f1 tV:.lI'10-r paYlI}Cntof tax by an amourtt not exceedinl
Ih-~tr t\.hJ..A f"'l.1l}0J0 ;J-hlt hllC Ii it l,qOOBirr, the taxpayer shall be subject to a fine
o-'I~O/.\'I' h1(a ~1JlhJ../.\ f"'l.1f..C'" hIT" /of not less than 50,000 Birr and not more than
~h" h4-tt h-nC !l 1( 0"71'11 "'I' hofiCif 1( 100,000 Birr and to imprisonment for a tenn of
""'~O/.\'I' f11Uofi-+1 ~'i tI"'''''''-r liOD-r not less than five (5) years an4not more than ten
,...,,,,, ~'i hhP'C Ii--r ""'~O/.\'I' ~~-rf (10) years; and
,.. P:il ~A );J~+ ;JlillJ ..-rc Ii :f"1MP'r. ..., !iif2~ ,.,.. Federal Negarit Gazeta- No. 21 31" December,2002-Page 2034

A) J\'h\ 7-"t"'bLA f"U-l1dJo ;J-h... hof1C i it (b) if the underpayment of the tax is in an amount
'fIIIJIA-r bart hof1CCt~ n: 0"711'" 7-~ hof1CIf exceeding 1,000 BiIT, the tax payer shall be
it O"'~O~-r f11,HI 0I8"'~ 7-~ hI 'ou+ subject to a fine of not less than -=75,000BiIT
f1"711'" 7-~ hI~ '018+ n"7~OA-r "P'&-+ and not more than 200,000 BiIT, and to
fA"IfJA.' imprisonment for a term of not less than ten
(10) years and not more than fifteen (15) years.
ft. f;J-h,,"1 '1AP'AIfJ1 JP&-"'A"'(8~hA
i' ,,"~m-r' (8dJol 28. Obstruction of Tax Administratjon
(I) Otl.tJ J\"~ OI8IPl+ JP&-tJJc1 (1"'h~m1 ,,~ 1) Any person who:
lit' f:f"h'" I1/tJPAIfJ1 IPt--t-IjI-t-..,'1CJ'(8~hA (a) ohstructs or attempts to obstruct an officer of
ID~" ""'(8~hA f'Phll m~" the Authority in the perfoITnance of duties
A) f"":(1 h~'8" O"'l~T~" A." "1).:\1 under this Proclamation, or
1(8~h/t (JJ~" /t"''''~hA f'Phl "'1.If~i (b) otherwise impedes or attempts to impede the
1D11:A OI8L,,"" -t-l?"'(fl r\.~l.('O+ hof1C implementation of the Proclamation,
Ii n: 0..,,,... 7-~ bof1Cif if. O"'~OA'I' f11"11 commits an offence and is liable, on convic-
018+-& 7-~ O.,./t+ 1018+ ~P'&-+ tion, to a fine of not less than 1,000 BiITand not
UIfJAIi more than 100,000 BiIT, and to imprisonment
I. /t10-'"",.,.,. (i) hL'"'' t"'tb.,.A-+"~"HltJ1 for a term of two (2) years,
f-""'A- tt.~":f """'ie'":f f;J-hc\o1 '1/tJPAIfJ1P't- 2) For the purposes of Sub-Article (1), the following
M"'~hA "'''''1&-+ II"tdJo ~1D(8~A-1 and other similar actions are considered to constitute
obstruction:
u) f;J-h... b4-"1fl """1; fP'&- ",;r."'''I\~T (a) refusal to satisfy the request of the Authority
f"t-/th-l: ...~p,.":f11t:rC.,.":f1 ID~" A.fro":f for inspection of documents, repOlts, or other
"7'i=fm-'" -l'K,,":f It_OI8CODCf;J-h*," '1/t information relating to a taxpayer's income
P'A.IfJ' f\m~;r. U'1.~ II"If1/t0l81"1+i producing activities;
It) f;J-hh- '1/tP'AIfJ1 /t-rI41 "'-\"'Ct(1 f\11I (b) non compliance with the Authority's request
U1.tt II"Ifl/tlll'1"1+1 to report for an interview;
th) f;J-ht'\- ,../tP'AIfJ1 IP&-"'~ 1D1.;J-h... h4-' (c) interference with a tax officer's right to enter
"..,~ P't- f1;J- /t"...,'1+ l/tdJo1 ODt(1+ the taxpayer's business premises.
OD11.of1l1
.
29. Failure to Notify
fl. /tCD--r' 1/t..,...;J-ID;r. A person who fails to notify the Authority of a change as
J\,+W 11 O"tl"CD- ODIPl+ OU-~;J-"T ,,~ f"'1.~"" required by Article 17 commits an offence, and on
AdJotP":f1 A;J-hc\o '1AP'AfIJ' ,""';J-ID+ "'~TdJo" (8dJo conviction:
-r4-.,.tt -II"), 04=C~ n.+ f\l?1-r'
u) '1'4.-1:f.,.U-"" If') ID~" Ob'1~ :fA'" (a) where the failure was made knowingly or reckles-
'S~+ fll"t 7\'''lI"t b-OC 1 n: 0"711'" ,",1"t(1 sly, is liable to a fine of not less than 10,000 Bin-and
-+17\~ Oh'~ 101'+ 7\P't-+, to imprisonment for one year; or
A) 0tt.A-":f lJet.:f-,,":f h-oc I n: 0-711'" """-0 (b) in any other cases, to a fine of not less than 5,000
01'''''' J\~ 0,. .C 7\P't-+, Bin- and to imprisonment for a term of six months.
~+IfIAIi
30. Offences by Tax Officer
j. O;J-hft-f'lAP'Ann 1Pt-.,.1JI":f f-..U"" -r4.-f":f 1) Any tax officeror former taxationofficer employed
Ii- fILII') J\"~ ~;J1."":f A.,,,,U.,. O;J-h... '1AP' in carrying out the provisions of this Proclamation
Alii), ftHomt 1Pt-.,.tt .~,. f+1:'I" ++trtt who:
ftOt' (a) directly or indirectly asks for, or receives in
U) 0...1 -lPt+ A./1T",. h-",'1 h~' .~,. connection with any of the taxation officer's
1IA"+ GNI\ h+tmtO+ """'1C;JC0.,.,," duties. a payment or reward, whether
.,.".,., .,.,. .,..,.,.,..f'lAlI"t""~ """-0 pecuniaryor otherwise, or promiseor security
.,.,. M ..,.t+ h~' .,.,. laIR;J- J\,,ut for that payment or reward, not being a
1A+ 'm'''' .,.,. '+tOA! Ah~I" .,.,. payment or reward which the officer is law-
. .
AlaIR:J-"+184..,.,. ..,..,. fm'+ .~,. fully entitled to receive, or
'+tOA'.,.,.
1A"1n:1j)~U-I,.l\ ";J~T ;tu.1IJ""'C fti :t"U"IP ftl .,., IIlf2~ ,.,.. Federal Negarit Gazeta - No.213111
December,2002-Page 203S

A) h:t'hla 0"7.11aJo 10. "y, "7~OCOC OJy,,.. (b) enters into or acquiesces in anagreement t9 do .

~lltJ ~cP~ 1:') ?1.,,"f ?C OJy,1J"h+(amaJo or to abstain frQmdoing, permit, conceal, or -

~"4.~"" OD~t}1J"~L'OIJ" ?C f"7.:J'l,) +..,flC
AODLOIJ"I Dl/1:l'1 f"7.1qaJo') h"71:l"
AOD:t'+-o1 +10. 1/:\.1f~,) ~'IC AODfi:+1:1
O:t'hla "y, f"7.LOIJ",) fDl/~OCOC +..,qC
AOD1.0:"1 OJy,1J" O"7.la1'C AOD+"'OC aJoA
f1q OJy,1J"0"7.1qaJo Dl/CjTlD-1J"aJo/:\. aJola1'
Off.tJ +..,q C OD+q O~ ') f"7.1 Ity, lalJ"IJ"H'
f(aml
1'4-"'~ ODIf~ Ofi:C1: 0."" "-l?11' hl1C 2 i'(,
ODl/Y,O/:\.1' f1')lfl1 OD+651. ~Cj hI 1OD"" 0"71')'"
htJ 1OD"" ODI/Y,O/:\.l' ~F to"" y,+trJ /:\.II
f:t'hla qAF/:\.trJ~ 1Pt-+~ fIn OJf.1J" f~Ol ~Cj
I'
fff.tJ') ~cP~ 1:')?1.,,"f ADl/laL'l.1J"f++mll 0"'-""
v-k I ')..,1: ih.., 0')'" 1: ? II.
t rJ :t'''''IJU ~') "l OJtrJ
h:t'lflfaJo 1y,H' ODl)f Ola++Cl
u) :t'h la,) 0"7 laL'l.1J" l11: q AaJo F /:\.trJ') OJy,1J"
.., 1..:t' IJ"h ') ''''' IOJ+aJo') f (aaJo Dl/CjT
"'''
aJo')fV tlDlJf ADl/CjT(JJ<1J" (aaJoOJy,1J"fff.1
"'''
(aaJoroh.A AIf~ (aaJo~It/:\.l.': f(tml
A) Off.tJ ~cP~ ODlPl"" :t'hla,) OO71\L'l.1J"l'l1:
lAm-') FAtrJ') AODm+1J" OJy,1J" f F to
.., l..:t'aJo') AODOJtrJ"" ~ ') U la"f~ O:t'h 1\ q A
Fl\trJ~ 1f,)1: f"7.11aJo') "7CjTaJo11J" ODl:(
Ott:C1: 0."" """tf1l t}/:\.If~ OI\++C A"'la""~
OJ1') ~"/:\.l.': f(am ~,)1.If~1
1'4-+~ ODIf~ Ofi:C1: 0."" "-l?11' hl1C Ii'(,
ODl/l,)la f1')lfl1 OD+Mi ~Cj hv-A"" 1OD"" ODl/I,)la
~Cj hJ\lJ"laT 1OD"" O"7Y,OA1' ~Fto"" Y,+trJ/:\'1I
[. fff.tJ ~')+1\ 1:,)?1. f:t'hla qAF/:\.trJ~ IPto+~1
u) Dl/CjTaJo')9" (t~1: OJ~IJ" ODlJfI
(i) AlltJ ~cP~ tDf.IjO ADl/CjTaJol}"1')If-o ~h
~cP~ ~L'OIJ" MIL"'!. Olf~ 1.lLl
(ii) Oih.., f+(amaJo') .,...,qCCj ;)"4.~T
t\oeCDII)"" ~I\L"'l. "-1f'}1 ACPCjaJo1-.\i'cr
if»
(iii) ODl){ AOD" CD"'1+ 1.to to 0. ..,-0C') t\"7 la
+l"" "'-""V-til h"'h-"f ~1~'f ?C q1.l
.,"faJo itrlJ" ~..,. ODIPl"" ~ eIJq 11
""
fA.h-"f ~1~"f qftFAtrJ'i"f1
(iv) Oih.., f+ltmaJo') +..,qCli ~,,4.~""
AODdJlIJ"" ~laL"1. "-1f')1 AF~ 1J"",qCCj
AOl ao-ll Cjit "7.1i') f
(v) hlltJ O"y, "A+1AO ADl/CjT(D-1J",ih..,
~ laL~ "7. OD/0."" .., 1..:t'lD-') A OD LOIJ"
f"7.1la "fAaJo ODl)f )\')-'lltm8J' h10.,,"f
"7.t 1\-1:C 01\ th-tt: "-:t'II1I11
A) ~"4.~:t'TOJ-') (\OUCDtrJ"" ~I\L"1. hl\hlf~
1:l11 ~,)1:,) (taJo 1l1-+iD- fDl/Y,m:""" ODl:(
,,"f') ADl/CjTaJolJ"(1OD'}'"F"'" '10. F to "y,
AOV1 n..,IA h Cj t\ l\:t'''''1\-t tll\ OD /0.""
1Pt-"'~1
hOD lam"" ~1"'1.aJo""1
~i' /tY,L+1: :t'hla I\i\OD"lI(a-o
Dl/CjTaJolJ" (aaJoOff.tJ ~cP~ ODlPl"" taY,L4>1:f\"":"hl\
CDf.1J" ~') l.:t'h la f"7.:t' Y, tIfi:1 f It 0" (1 OJ",..
"'''
f\ODlt-o(al1 flJUhl OJ'))!/:\' fLOOD Iftii 1'4-+;;: ODI1'~
Ott:C1: 0."" "-l?11' hilC 2ft fDl/f,)fi f1'),,11 OD+Al
~Cj h~"'ll"" 1OD"" ODI/I111 hJ\laC 1OD.}- ODl/Y,O/:\.1'
).p't-T 1A>trJA81
connive at any act or thing whereby the tax
revenue is or may be defrauded or which is
contrary to the provisions of this Proclamation
or to the proper execution of the taxation
officer's duty; .
commits an offence and is liable on conviction
to a fine of not more than 50,000 Birr and to .
imprisonment for a term of not less than ten
(10) years and not more than twenty (20) YC",Ms.
2) A tax officer or a former tax officer engaged in
carrying out the provisions of this Proclamation,
except such information is required by the Commer-
cial Code of Ethiopia to be published in the Trade
Gazette, who,
(a) discloses to any person or his representative,
any matter in respect of another person, that
may, in the exercise of the taxation officer's
powers or the performance of the taxation
officer's duties under the said provisions, come
to the taxation officer's knowledge; or
(b) permits any other person to have access to
records in the possession or custody of the
Authority, ~xcept in the exercise of the
taxation officer's powers or the .performance
of the other's duties under this Proclamation or
by order of a court;
commits an offence and is liable on conviction to a
fine of not less than 10,000 Birr and to imprisonment
for a tenn of not less than two (2) years and not more
than five (5) years.
3) Nothing in this Article shall prevent a taxation
officer from disclosing:
(a) any document or information to:
(i) any pef!~onwhere the disclosure is neces-
sary for the purposes of this Proclamation
or any other fiscal law;
(ii) the Auditor-General where the disclosure
is necessary for the performance
. of duties
entrustedto it by law;
(Hi) the competent authority of the govern-
ment of another country with which
Ethiopia has entered into an agreement
for the avoidance of double taxation or
TaJo for the exchange of information, to the
extent permitted under the agreement;
(iv) the Ethics and Anti-Corruption Commis.,
sion where the disclosurcds necessary for
the performance of duties entrusted to it
by law;
(v) a law enforcement agency not described
above, where the Minister of Revenue
issues written authorization to. make dis-
closures necessary for the enforcement of
the laws under the agency's authority; or
(b) to any person in the service of the State in a
revenue or statistical department, information
which does not identify a specific person
where such disclosure is necessary. for the
performance of the person's official duties.
31. Unauthorized Tax Collection
Any person not authorized to collect tax under this
Proclamation who collects or attempts to collect tax (or
an amount the person describes as. tax) commits an
offence and is liable. on conviction to a fine of not less
$an 50,000 Birr and to imprisonment for a term of not
lessthan five (5) years and not more than ten (l0) years.
1A" 1i£.01 t.1.~A ~;J6:" .?It.tIJ4I1'CIii :l'UUfP' II +, Iii11~ 'H". Federal Negarit Gazeta - No. 21 31" December, 2002-Page 2036

01'
(1WIC~ + fD f,9" "'70 l;J- ;1-+ 32.
Aiding or Abetting
117'i¥'(Dc'l'" (a(J}o filii 1'1";€ 1:1,?1.9'"f ~1JlnJf1- fl.~: A person who aids, abets, incites, or conspires with
fOl;J-;1-: fF.,,: fDf,9" O"7.lvrC f.,.110l ~1~l'" another person, to commit a violation of this
~ 1 ~ "'~ ID- 'J'af."'~ fflU') h"~ 1:1 :J1.sP"f 0O!J1f) it Procla.mation, also commits an offence. He may be
'J'4-'-" "/"""'1A1I hlltJ Ol\f, f"'"I."~'-"1 f ~KOO(lID-i subject to prosecution and, on conviction, be liable to a
'J'4-"'~ 0011'), Otj:C~ 0."" ft.1.;J1'J' 6C";;J-CD-1fDf,'" fine and imprisonment, not in excess of the amount of
,-".,H1~ , A(am0+ '1'4-'-" h+m(a ~ID- f11"00 ~ 'i
fine or period of imprisonment provided for the ottence
f~P.t-'-" :"11):"t}AOl\m 01')"-(1 "'i O~,...t-+ f,4'IlJAII
aided or abetted.
t!)~. 01:c:E-.,."f f"7.Lt.'" 'J'4--1-
33. Offences by Entities
Ii' OH.IJ 1'1'}"'W'to-n 1'11"'~ (r) f"'~~11fD- ~11.'"
mO.,. l1''iI 1\11: 1:C~+ ,e.tJ', 1'1"~ 000"'''1\~ 1) Subject to Sub-Article (3) of this Article, where. an
'J'~+ fLKODh11.11'~ 'J'4-i: O.,..LKOD1.", f,(-C;e:i: enitity commits. an offence, the person who is a
P't- J\llh.f~ fl1'~ "7liTID-9" (aID-01:C~i: f.,.l,K manager of that entity at the time the offence is
00ID-1 '1'4-+ ~1~4U00 .,.of'J'e" OfltJ J\'P~ committed, is treated as also having committed the
f 1-11)I\ID<:"IIJ + .,. ~~ "7. f,11'1 0;1-1AII same offence and is liable to a fine and imprison-
I' OlltJ J\,.,.W 10-ll 1'11.,.W (r) f"'~~11ID- h1~'" ment under this Proclamation.
100.,. .F'ii D7'iTID-9" 1:C~"" OfltJ1'1"~ 001P1.""
2) Subje~t to Sub-Article (3) of this Article, where an
il.hLIA f"7.1'I(J}o') mf,9" 1'1"~ ~11.;f'tlit f"7.~'J'
entity commits an offence by failing to pay an
I.ID-' "7'iTID-11}O "'1\ tltt:f 10. "'f~C'" r4'l
amount of tax, including an amount treated by this
~ 1~11'~ 'I'4-i: h.,.UODO+ 'UI. hit.,.1:"., 0~t1~""
...1:n+ fDt-+ m-ll'J' f1:C:E-i: P'&- hllh.l~ f~O~ Proclamation as though it were tax, the person who
(asP"f h1:C';i: ~'i hl\.l\ID- (aID- ;JC Oh11:H'Cj was a manager of that entity at the time of such
O"''imlA f;J-tJf1- 111\P'AIIJ1 I\"7.LIA11D- ;1-hit 'h'i failure or was a manager within six (6) months prior
I\.fr-'f h~J''''f +mJ'-t f,11''i/r:: to the date of commission is jointly and severally
f' o,o-n "''''Jt (Ii) ~r; (I) f.,.1.~1,.:"i liable with that entity and that other person for the
V) 'J'4-i: f.,.l.KODID-..,I\lla- "fID-:" fD~9" ""il amount due to the Authority.
,.",,0:" h"'~ 1 3) Sub-Articles (1)and(2) do not apply where,
a\) 1'11.(' ~1t:'f1 O'J'1:J><J: f"7.f,e. flm- 0""00 (a) the offence is committed without that person's
""f, v-~;J- ID-ll'r f'J'4-i:1 ooU9" I\ooh"hlA knowledge or consent; and
f,fD n";T" IA .,.-11fr- f"7. 1 ooi: 'J'1 :J><J:sP'f1 I
(b) that person has exercised the degree of care,
",,0.ID-1 +;J+ ~'i f1'1lPlrC 'J'O-o f.,.".,I\O""
~C9")f ..,I\flO' fDll,. f"'1; ~1~11'~:
diligence and skill that a reasonable prudent
.,.l.A""l. 1'1,e.II')'O+9"11 person would have exercised in comparable
g. I\10-ll 1'11.,.W (Ii) ~'i (I) 1'1l.AA9"" P't- 1'1ilh.f~" circumstances to prevent the commission of
"71\:r-I the offence.
V) f"lich'i "710C'} O"7.ool\h+ f"lich'iID- 4) In Sub-Articles (1) and (2), "manager" means,
"'10C 1'1111Amf,9" f"710~ P'&- "llh.f~ (a) in the case of a partnership a partner or
fDf,'" hv-I\i: ~I\kH"'f O1'11~ "'~"7.IPt- manager of the partnership or a person purpor-
1I''i f"7.;J- f,1 ting to act in either of those capacities;
A) h-111f1 O"7.ooAh+ fh-111 fID- f P' t- oo~i
(b) in the case of a company, a director, manager,
P't- 1'1IIh.f~ fD f,9" "7'iTID-9" 1\.1\ 1f.9" fDf,9"
or officer of the company or a person purpor-
h~~lltJ ~I\kH"'f O1'11~ ~1~"7.1Pt- 11''i
f,1 ting to act in any of those capacities;
f"U"
th) ffl9''f1 1-111.+ O"7.ool\h+ f1-o1.-I: P'&- (c) in the case of an association of persons, a
1'1llh.f~ fDf,'" 01lV- ~I\k~+ ~1~"7.1Pt- manager or a person purporting to act in that
1I''i f"t;J-"1 capacity .
~fDooil 34. Offences by Receivers
t!)§. O.,.ltJo.9''f f"7.l.A9" 'J'4-+ 1) A person wh9 fails to comply with the requirements
i' "'I'iTfDooIJ" fafDoo O1'11.,.W n;
10-il "''''W (g) of Article 16(4) commits an offence and is liable, on
0"'1.~11fDoooolPl+ ",e.LW,.. f.,.1. ~11.1I'~1 'J'4-.,. conviction to a fine of 5,000 Birr and to imprison-
'1~-Ia0~1: 0.+ C\.l;J1'J' -I1C~7f. f11"-I1 OD"'~
ment for a term of one (1) year.
~'i 01'111: ~OD+ ~P't-+ f,"'1IJ1A11
2) Where a person is convicted of an offence under Sub
I' 'I'i:ftDJr fafDooO1'11.,.W n; 10-ll 1'11.,.W (g)
-lPl+ A:l"hll h~' f"7.fDool\fDoo1
11"-11 1\"'" Article (1) of this Article for failing to set aside an
I1A..,".,.-"" goh1,+ 010-" 1'11.,.W(Ii) ODIPI.+ amount as required under Article 16(4), the court
fl.-t'1 If.,. f.,.,-r "'I.II'~1 ":C1: 0.-1: h11"-I1'i may, in addition to imposing a fine and prison
J.IP&o+-~ O"'~~ A".,. fl\""'ODmfDoo1 sentence, order. the convicted person to pay. to the
f"Ho(1 -m1 A:l"hl\- QAP'AIIJ1 10. "'Ul.c-I Authority, an amount not exceeding the amount
l\J1I ,e.'fttAII which the person failed to set aside.
 ..,.. lit¥JI'IJ.j,.A ~,,7~"",,7 +rc II tI?1,- n +1 Iln",", Federal Negarit Gazeta- No. 21 31- December,2002-Paae 2037

0~.~ , f'r+"'~'f' ta,. a..7H.III

A~"., + 3S. Publication of Names
'f- 't'~hl\- flAP'A,," arr.., 1\~ ''''''+1- 'HI 1) The AuthoritY shall from time to time publish '.by
f"'~~1"+' 'tD'lA 1+f.~a~LA" ."'LU. notice in a Gazette a list of pei10ns who have beep
flTcD-...,.T-",.1IC1IC ah.H...a6A:J-! .,7H."'~ convicted of offences under any of the provisions of
:tr+fD ).''''IDIII 1'-C.,7A- Articles 2S to 34 of this proclamation.
,I' alt.., 1.1+" ,'o-ta, 1\"+,,,,; (I) -lPt"" :J-:"'"
, 2) The list published in terms of Sub-Article (I) shall
f"1lDllltJJo 1fC1lCI specify:
u) f'(-c~" (a) die name, address. and principal enterprise of
-'" """0-, 18,. )''i ,t.~601f1 the person;
A),,1IAP'A"I;~.'t20.t8a,.A-P7.1r")O+1
'ID' (b) such particularsof the offence as the Authority
J:A-' A~"1fC1lCl may think fit;
dt) '1'4-." 1.1-0'" fi8H1C".., eu- (c) the tax period or tax periods, in which the
'
,,,tIfI':''''' offence occurred;
~) "ta.r.ba ,;"t.., -NI(:.-.0'1 (d) the 'amount or estimated amount of the tax
,IP). .n~~~ "''''hf:A'''''.uo+ "'of)CtJA evaded; and
""').1 (e) ,the amount. if any. or the additional tax im-
f"'t1A4,~'i. posed.
}I~ (a"'j:
SECTION EIOIIT
~
.. ,f-+AfIf;: 11J-
MiscellaneousProvisions
36. Duty to Cooperate
i.t, ~.""X- OP-~u.' ir"f'rA ,~ )''i 'bAA 1) All F~ and Regional government authorities
"'~~:I"+ 'I""A,,,"",",, eh.A-JC'ffDo0.,."" Ibd their agencies, Bodies. Kcbcle Adminisb'ations
"~"'1:C~~' ,4tOA.-h""'~).'i""'O~+ and Associations shall have the duty to cooperate
M'f\P,
11:1"h-"qAl-A ,
AAfI=fGJ...
PC , qnc ..,I.:J- ,.withthe Tax Authority in the enforcement of this
Proclamation.
n,...,,.'S+"u: u ItAn-,.,. 2) (a) No Ministry. Municipality, Department or Of-
I~~) ':I"hl\-'lAP'
,
fice of ptcFcderal Q~Regional Government
Alii' ''''H-
"

'?hia -h1.11J1. tJAilm ,

shall issue or renew any license to any

OiaH-C' :l"h18
"'" '~o+1
a " fIW.AhA..,II')..U-
-HIe ,~payer, unless the appl~t
,
produces a
A"''' -AI
:"hh Certificatefroln the Tax Authority to the effect,
114.,., O-z.-Ah+ ':iii" h4-1o that tax due Inrespect of-the preceding year or
"''''C ~+tO ,""ofotC "U1:,"'- years have been paid, or where the taxpayer is
"1th"~' "'.7~ ~""1.1-~ 'U- ,
seeking lice~ for the fIrSt time a taxpayer
fhAA -1"'1.1 ,IL"" Mia n..,.(- P'~ identification number (TIN) issued by the Tax
U.(- -tam+ -""",.,I.h ~1o~A"" AuthoritX. unless an appeal, is pending, or
A) f:*-111\-qAl-Ann time for payment is extended by the Tax
~h" 114-,IAO+''''1.:f" Authority.
iaA-U.-- frht¥:.., etf''' ,.,,.tvr "LI"
..
~ (b) If the Tax Authority 'refuses to issue a cer-
lat\"'~ IA.., rb',+ 04il!IICIIC Am/t.... tificate it shaQ.on demand by the applicantfor
MiliA..
the liCense,provide him or it with a written
~) ,,.lahC ..~++, AAiI",. R1A'" 'U- statementof its reasons therefor.
n..,~'p.~.UI: n-lPt". r-HlC~tt1o." (c) Any applicantwho is aggrievedby the reasons
flAP'AnrJ ail"""f*h":"~ -tC ,.,.~,. stated by the Tax Authority for refusing to
~,..,. :J-hhb..." ftUo'" MIL.,,:" issue a certificateor by the revocationof his or
AIII~"-z.otA..t~ ,,'fitA- its licensemay appeal in writins to the Review
M- '-ttn-N-P'A"n Committee. '

Ii"':" At'~ A.A-~ A'+1'f h+1"'" O"'''''1~ 37. Po.wroftheMinister

"'ltla-k M."".-z. f A~O~t .",. Mh-MI.C The Minister may, waive. in whole or in part, the tax
"h',,,,~ ID"" 0111. cICI\"~ +PC Uti/Ilftl levied under this Proclamation for economic.soeial or
administrative reasons or for reasons specific~LUftder
",+"" ~I(A) f8.,1"t"~rb11"'~ alt.., "..~ Alticre'C(b) , of ' the InCQme Tax Proclamation No. 2861
b+nIA" :l"hhtM:10"'. -U-OIWoA ~, f"fl:t1 2002.'
Jt»AIfJ' +"'",",,:J-A II
,3.~ Po..- to Issue Directivt:8
.,- (IfI(IfI~I"'''''''''''' '-Ann The Minister of Revenue may issue directives for the
nil"" "'ltla+CAlt..,"'..~ J\ua,. M~ -"~I proper implementation of this Proclamation.
,.~ A-rcD-nJ+,.~~.. 39. IllflNJ '

iJI- "AtIfI1fc The Salea and Excise Tax Proclamation No. 6111993 (as
~u "'''~ O,-~ UIrPA"" Xrt: ~ ,1IIIeDded)shall bO .acindedas &om the day on which
u ,." :l"hh"'~' +rc: II/IIN'I ~'~+If'ItA) ... Procl8mation becomes 'of full foR:e and effect.
+6C1LA-
,~,' ;11t..~~~;Jt+ ;JJI,"! ".,C Ii :f"UUfP' II +,11126 ,.,.. Federal Negarit Gazeta- No.2131"December,2002-Page 2038

,. fOD7r;J1&1
~';J1. 40. TransitoryProvisions
1-U "":E- hOD~'i"-J:04."" "'1-hLA f+l. f1if~ ~bi\ All sales tax due prior to the coming-into force of this
Proclamation shall be collected in accordance with the
01if~'i" hob"'1-" ~hit hCf:E- 0"'~~11tD- ODlPl.""
Sales and Excise Tax Proclamation.
f"tltOltofl ""'i"AII
41. Effective Date
iji. "CP:( f"'-''iO'''' "Lit. This Proclamationshallenter into force as of the 31" day
1-U "''':E- h~U"'P' 3'1 +, Iiil'?; ,.9'" 'f.9'"r:fIJ'i of December,2002.
1-1f'i"AI'

Done at Addis Ababa, this 31 day of December, 2002.

II

"Jli\ "°«1 ~U"'P' 3'1 .,., titn?; ,.9'"

GIRMA WOLDE GIORGIS

"1M OJIA~ l.foC1..it PRESIDENT OF THE FEDERAL
flt...,.fokl d.1.~"ce Jl'P'bt-lt.fce &Tof1f\.b DEMOCRATIC REPUBLIC OF ETmOPIA
T ~Il.&;'''''