Overview of the Expeditious Dispute Resolution Tax Scheme (EDRTS) in Mauritius
The Mauritian Revenue Authority (MRA) has implemented the Expeditious Dispute Resolution Tax Scheme (EDRTS) to facilitate a streamlined process for taxpayers seeking review of certain tax assessments and claims. This scheme aims to provide a quicker, more efficient alternative to traditional dispute resolution methods, thereby reducing the burden on both taxpayers and the administrative system.
Scope and Purpose of the Scheme
Established on 24 July 2017, the EDRTS covers assessments raised prior to 1 July 2016 for various tax types, including income tax, value-added tax (VAT), and gaming tax. Since 25 July 2019, the scheme's scope has expanded to include assessments or claims related to the Employees’ Provident Fund (EPF), as well as duties and taxes under the Customs Act. The scheme is operational until 31 August 2020, providing taxpayers with a dedicated avenue to seek review and potential relief from disputed assessments.
Who Is Eligible for the Scheme?
The EDRTS is designed for taxpayers who meet specific eligibility criteria:
- Assessments or claims must have been issued before 1 July 2016.
- The total tax claimed should not exceed Rs 10 million.
- The taxpayer must not have previously objected, lodged representations, or appealed against the assessment or claim, or such proceedings must be pending.
- Tax dues must be outstanding as of the date of application.
- The assessment or claim must not have been reviewed under any other scheme.
- The applicant must submit a formal affidavit, waiving rights to further legal proceedings following the panel’s decision.
- The applicant must not be involved in criminal activities related to drug trafficking, terrorism, money laundering, or corruption, nor should there be ongoing civil or criminal proceedings against them.
Application Process and Conditions
Applicants wishing to benefit from the scheme must submit their application before the deadline of 31 August 2020. The process involves the following steps:
- Submission of a formal application to the MRA, including the required affidavit.
- The application is reviewed by a dedicated panel of three officers within one month of receipt.
- Applicants are informed of the panel’s decision and may choose to accept the assessment or request a review.
- If the applicant agrees to the revised assessment, they are eligible for a full waiver of penalties and interest, provided the tax is settled within one month of the decision.
- In case of disagreement, the applicant may produce relevant documents or particulars for review. If an agreement is reached, penalties and interest may be waived by up to 75%, contingent on timely settlement.
- The final agreement, once signed, is binding and conclusive for both parties.
Key Points and Legal Considerations
The scheme emphasizes voluntary participation, with applicants required to waive their rights to further litigation after the panel’s decision. The process is designed to be swift, with determinations made within six months of application referral. It is crucial for applicants to ensure compliance with all conditions, including timely payment of the settled tax, to benefit from waivers of penalties and interest.
Support and Further Information
For assistance, taxpayers can contact the Objections, Appeals & Dispute Resolutions (OADR) Department at the MRA headquarters in Port Louis. The department provides guidance on objections, appeals, and dispute resolution procedures. Contact details include:
- Address: Level 6, Belfort Tower, Cnr Dauphine & Joseph Rivière Streets, Port-Louis
- Telephone: 207 5000
- Fax: 207 5050
- Email: objectionsappealsdr@mra.mu
- Official Website: www.mra.mu
Taxpayers are encouraged to consult the official MRA website for downloadable forms and detailed procedural guidance related to the EDRTS and other dispute resolution mechanisms.
Conclusion
The Expeditious Dispute Resolution Tax Scheme offers a valuable opportunity for eligible taxpayers to resolve disputes efficiently and with minimal penalties. By understanding the eligibility criteria, application procedures, and legal implications, taxpayers can effectively utilize this scheme to address past assessments and claims, thereby contributing to a fair and transparent tax administration system in Mauritius.
