TAXATION

Chawala Simon Liwinga FCCA; MSc Str. Mgt; BAcc; CPA(M)

0888373188/0992589489

simonchawala@gmail.com

Malawi College Of Accountancy- Mzuzu

TAX APPEALS PROCEDURE
Learning Outcomes:
On completion of this chapter you should be able to:
• Explain circumstances that may result in a taxpayer being
aggrieved; and
• Explain the tax appeals procedure.
Introduction
This chapter discusses the tax appeals procedure and the grounds
which can necessitate the taxpayer to appeal to the Commissioner
General when aggrieved.
16.1 Valid Grounds of Appeal
Under the Taxation Act, a taxpayer may appeal if he:
a) is dissatisfied or aggrieved by any assessment made by the
Commissioner General;
b) is dissatisfied or aggrieved by any decision of the Commissioner
General to an assessment; or
c) is dissatisfied or aggrieved by the determination of the reduction
of tax;
The taxpayer may appeal to the Commissioner General against
such assessment within 30 days in writing.

The opportunity to appeal is given to taxpayers under the Act for

purposes of fairness.
16.2 Validity of an Appeal
Every appeal must have valid grounds. A taxpayer has no valid
grounds of appeal if:

• an appeal is made simply because the taxpayer does not want to

pay tax;

or

• has cash flow problems.

Valid grounds of appeal would be where the taxpayer does not
agree with the Commissioner General’s interpretation of the tax
law.

In any appeal process the burden of proof that any amount is

exempt from income tax; not liable to income tax; and is subject to
any deduction or allowance shall be upon the person claiming.
16.3 Appeals Procedures
16.3.1 Appeals to the Commissioner General
1. The taxpayer is required to make a written submission to the
Commissioner General within 30 days from the date the notice of
assessment or decision was despatched to him and should
specify the grounds of appeal.

The 30 day period may be extended if the Commissioner General is

satisfied with any reason given by the taxpayer for the delay.
2. The Commissioner General may require the personal attendance
of the appellant but if the appellant fails to do so the appeal may be
dealt with in his absence and the Commissioner General will send a
written notice of his decision to appellant.
16.3.2 Appeals to Special Arbitrator
The taxpayer who is not satisfied with the Commissioner General’s
decision may appeal to the special arbitrator (Chief Resident
Magistrate) through the Commissioner General and the procedures
for appeal are as follows:-

a. The taxpayer is supposed to notify the Commissioner General in

writing within 21 days of the issue by the Commissioner General
of the notice of his decision, of his intention to appeal.

b. The taxpayer should within 42 days of the issue by the

Commissioner General of the ‘notice of his decision’ lodge with
the Commissioner General a written statement (in duplicate) on
his grounds of appeal. This statement should contain facts and
points of law on which the appellant shall rely upon in the
appeal case.
c. Within 42 days of receiving appellant’s grounds of appeal, the
Commissioner General shall lodge with the special arbitrator the
appellants’ grounds of appeal and Commissioner General’s
reply.

d. Then an arbitrator will notify the taxpayer and the Commissioner

General the date and place of hearing the appeal.
Notes:
i. If any party is not present at the date of hearing the special
arbitrator may decide the appeal in his absence.

ii. The ruling by special arbitrator is final as regards to matters of

fact.

iii. Anyone publishing proceedings without the authority of special

arbitrator is fined K1,000.
16.3.3 Appeals to High Court
1. Any party aggrieved by special arbitrator’s decision shall lodge
with the high court his intention to appeal within 21 days of the
special arbitrator’s decision.

2. The appellant should within 42 days from the date he received

special arbitrators decision lodge with the high court (four
copies) a written statement specifying his ground of appeal.

3. Upon receipt of written statement of appeal the high court shall

send a copy to the respondent who is also supposed to write a
statement of reply (four copies) specifying the grounds upon
which he will rely on the hearing of appeal.
Summary:
This chapter has discussed the appeals procedures that an
aggrieved tax payer must follow when appealing on tax matters..
the appeals can be made to the Commissioner General, Special
arbitrator and the high court.