Understanding the Alternative Tax Dispute Resolution (ATDR) Process in Mauritius
The Mauritius Revenue Authority (MRA) has established the Alternative Tax Dispute Resolution (ATDR) mechanism to provide taxpayers with an efficient and impartial pathway to resolve disputes related to tax assessments. This guide aims to clarify the purpose, scope, eligibility criteria, procedural steps, and important considerations surrounding the ATDR process, as outlined in the official June 2023 document.
Objective and Scope of the ATDR
The primary objective of the ATDR is to facilitate a fair and expedient resolution of tax disputes by establishing a specialized panel that reviews cases where taxpayers contest assessments under specific revenue laws. The ATDR Panel is empowered to review cases concerning assessments made under the following laws:
- Income Tax Act (Sections 129 and 129A)
- Value Added Tax Act (Section 37)
- Gambling Regulatory Authority Act (Section 119)
- Environment Protection Act (Section 69)
- Customs Act (Sections 15 and 24A)
This process is designed for cases where the disputed tax amount exceeds Rs. 5 million, and where the taxpayer has previously lodged objections, representations, or appeals at relevant review bodies or courts.
Eligibility and Conditions for Application
Applicants seeking to have their tax disputes reviewed by the ATDR Panel must meet specific conditions:
- The applicant must have previously objected to the tax assessment, made representations to the Assessment Review Committee (ARC), or appealed to higher courts such as the Supreme Court or the Judicial Committee of the Privy Council.
- The disputed tax amount should be greater than Rs. 5 million.
- The applicant should not be under investigation or have been convicted of offences related to trafficking of dangerous drugs, money laundering, terrorism financing, or corruption, as per relevant legislation.
- The grounds of dissatisfaction in the application must align with those previously raised in objections or appeals; no new grounds should be introduced.
Procedural Steps for Applying to the ATDR
To initiate a review, the applicant must complete the official application form, which is available for download on the MRA website (www.mra.mu). The completed form must then be sent to the ATDR Secretariat at the Mauritius Revenue Authority's offices:
Level 10, Ehram Court, Cnr. Mgr Gonin & Sir Virgil Naz Streets, Port Louis
Applicants can submit their applications via mail, fax, or email:
- Phone: 207 6000
- Fax: 207 6041
- Email: atdrpanel@mra.mu
Once received, the ATDR Panel may call the applicant to provide additional information or clarify issues relevant to the review. The Panel is mandated to deliver its decision within six months from the date the application is formally referred to it.
Decision-Making and Outcomes
The ATDR Panel's decision can result in:
- An agreement binding both parties, which must cover all disputed items, be final, and include terms for settling the tax liability.
- A rejection of the application if the case does not meet eligibility criteria or if the Panel finds insufficient grounds for review.
If an agreement is reached, the taxpayer must ensure that the settlement terms are adhered to, and if the case is under appeal, the agreement must be filed with the relevant court or tribunal.
In cases where the taxpayer disagrees with the Panel's decision, they have one month to notify the Panel and may proceed with their objection or appeal process. The objection or appeal will then be determined within four months from the date the Panel is informed of the disagreement.
Limitations and Withdrawal
The ATDR process does not apply to all cases. If the Panel determines that a case is ineligible, the applicant will be notified within one month, and they may then pursue their objection or appeal through the standard legal channels.
Furthermore, applicants retain the right to withdraw their case from the Panel at any stage, and they can revert to the traditional objection or appeal process. The withdrawal will be effective from the date the application is formally rescinded, and the case will be processed within four months thereafter.
Additional Support and Clarifications
For further information or assistance regarding the ATDR process, applicants are encouraged to contact the ATDR Secretariat directly or consult the official MRA website. The authority aims to promote transparency and accessibility of its dispute resolution services to all taxpayers.
Understanding the ATDR process ensures taxpayers are aware of alternative avenues for resolving disputes efficiently, reducing reliance on lengthy court procedures, and fostering a fair taxation environment in Mauritius.
