Reforming Tax Appeals in Mauritius: The Revenue Tribunal Bill Explained

A Shift in Tax Appeal Jurisdiction

Under the proposed framework, any person aggrieved by a revenue determination made by the Director-General of the Mauritius Revenue Authority (MRA) or the Registrar-General would appeal to the Revenue Tribunal. This would replace the current system where such appeals are directed to the Assessment Review Committee. The Tribunal would be empowered to adjudicate a broad range of tax-related disputes, including assessments, determinations, and notices issued under various revenue laws.

Structure and Composition of the Tribunal

The proposed Tribunal is intended to operate independently and professionally. It would be chaired by a barrister with no less than ten years of standing, appointed by the Public   Service Commission. Supporting the Chairperson would be one or more Vice-chairpersons and up to ten members with expertise in fields such as law, taxation, economics, accountancy, or business administration. To safeguard impartiality, these members would be prohibited from having affiliations with the MRA, the Ministry of Finance, or any political entity.

The Tribunal would be organized into divisions, each comprising the Chairperson or a Vice-chairperson and one or more members, depending on the complexity of the case. This flexible structure is designed to enable the Tribunal to manage its caseload efficiently while maintaining the quality of its deliberations.

Simplified and Time-Bound Proceedings

A key feature of the Bill is the introduction of strict timelines for the handling of appeals. The Tribunal would be required to schedule a preliminary hearing within 120 days of an appeal being lodged and to deliver its decision within 90 days of the hearing’s conclusion. These deadlines are intended to reduce procedural delays and ensure timely justice for taxpayers.

The Tribunal would also be vested with powers to summon witnesses, request documents, and take evidence under oath. Proceedings could be held in camera to protect privacy or the interests of justice. Parties would be allowed legal representation or other authorized representation, and the Tribunal would be encouraged to avoid unnecessary formalities in its procedures.

Mediation as an Alternative Dispute Resolution Mechanism

The Bill proposes the introduction of a formal mediation process, allowing parties to resolve disputes amicably before proceeding to a full hearing. If both parties agree, the Chairperson could refer the matter to a mediation panel. Any agreement reached through this process would be binding and treated as a decision of the Tribunal. This mechanism is expected to reduce litigation costs and promote a more collaborative approach to resolving tax disputes.

Expanded Rights of Appeal

Another notable provision in the Bill is the expanded scope for appeals to the Supreme Court. Under the current system, such appeals are limited to questions of law. The proposed legislation would allow appellants to challenge both legal and factual findings of the Revenue Tribunal, thereby significantly enhancing the rights of taxpayers.

To initiate an appeal to the Supreme Court, a party would be required to file a notice within 21 days of the Tribunal’s decision and comply with procedural requirements, including the payment of costs and the submission of necessary documentation. The Tribunal’s decision would remain binding unless overturned by the Supreme Court.

Legal and Administrative Reforms

The implementation of the Revenue Tribunal Bill would necessitate amendments to over a dozen existing laws, including the Income Tax Act, Value Added Tax Act, Customs Act, and Excise Act. These amendments would replace references to the Assessment Review Committee with the Revenue Tribunal and align procedural rules with the new framework.

The Bill also proposes the repeal of the Revenue and Valuation Appeal Tribunal Act 2013 and outlines transitional provisions for the seamless transfer of ongoing cases, staff, and resources from the Assessment Review Committee to the new Tribunal. Employees of the former Committee would be transferred with continuity of service and terms of employment preserved.

Safeguards and Offences

To uphold the integrity of its proceedings, the Bill outlines a range of offences, including failure to attend when summoned, refusal to testify or produce documents, and misconduct during hearings. Convictions could result in fines of up to MUR 100,000 and imprisonment for up to two years. The Tribunal and its members would also be granted legal protection for actions taken in good faith in the discharge of their duties

Conclusion

The Revenue Tribunal Bill marks a pivotal advancement in Mauritius’ tax administration landscape, promising a more structured, transparent, and accessible system for resolving revenue disputes. By replacing the Assessment Review Committee with a dedicated Tribunal, the government has laid the groundwork for a more efficient and rights-based approach to tax appeals.

However, a significant challenge lies ahead. The newly established Revenue Tribunal will inherit a substantial backlog of unresolved cases from the former Assessment Review Committee. These pending matters will also be subject to the statutory requirement of being scheduled for a preliminary hearing within 120 days. This influx of cases, coupled with the strict procedural timelines, may place considerable pressure on the Tribunal’s operational capacity.

To meet these deadlines without compromising the quality of adjudication, the Tribunal may be compelled to either expedite cases at the risk of not fully considering their merits or significantly expand its human resources through additional recruitment. The success of this reform will therefore hinge not only on the legal framework but also on the effectiveness of its practical implementation. A smooth and well-resourced transition will be essential to ensure that justice is delivered both swiftly and substantively.