Skip to main content

Do you know your rights as a Taxpayer?

We all are aware that taxes needs to be paid on any income earned from the income generating activities. There is no way we can remain untouched. There is a famous quote that only two things are certain in this life 1) Death 2) Taxes

There is huge compliance cost when it comes to taxation. Keeping a proper books of accounts, making sure that it is auditable and filing of periodic tax return. It notly only takes a lot of your time, money but also gives us a fear whether we haave done everything rightly or not? Whether there will be finess and penalities? 

I have seen people who are actually afraid to face tax officers and right letters to tax department. Most common reason is fear. We fear that anything we do or say will be held against us. We fear that we will not be given an opportunity to explain. But, that is not so true. Nepalese Income Tax Act, 2058 has assured certain rights for every taxpayer. These are fundamentals rights which we can exercise:

1) Right to respectful behavior

2) Right to receive any information related to tax as per the prevailing laws

3) Right to get an opportunity of submitting proof in tax matters

4) Right to appoint lawyers or auditor's for defense during tax-related litigation

5) Right to secrecy and to keep it inviolable

However, I feel these are still vague and require simplification. My rationale is that the easier it is to understand and less burdensome it is to comply more voluntary chances for 100% acceptance. Its a change in behavior of the tax office and its officers that would make tax administration more user friendly and approachable to common people. 

Then, I went to do some research on the topic and went through rights secured in some of the developed countries. The one from USA actually helped me retain my position. I really liked the way they have cleared out amibiguity. I was, in fact, impressed that they had even mentioned quality service as the fundamental right. The whole world and tax regime in Nepal would be different if only tax payers are treated as a customer. Here's the fundamentals rights mentioned in Taxpayer Bill of Rights:

1) Right to be informed

2) Right to quality service

3) Right to pay no more than that correct amount of tax

4) Right to challenge the Tax Office (they call it IRS) position and be heard.

5) Right to appeal an IRS Decision in an idependent forum

6) Right to finality

7) Right to privacy

8) Right to confidentiality

9) Right to retain representation

10) Right to a fair and just tax system

In the end, let me put a question to you:

1) How you feel when you visit Tax Office or interact with Tax Officers?

2) Do you feel Nepal Govt. and Inland Revenue Department has done enough to help you secure these rights?

Thanks for going our post. You know by now we are also on Instagram, TikTok and Facebook. Just search for @arthabicharnepal. 

Have a great day.

Labels:
Location: Kathmandu 44600, Nepal

Comments

Post a Comment

Most Viewed

Tax Collection Agency codes for IRD Offices all over Nepal

Inland Revenue Department Nepal has published the agency codes that shall be used for the collection of direct and indirect taxes for the general public's information. Each code consists of 9 numbers. There are in total 59 agency codes currently in use. From these codes, we can classify that there are four types of IRD offices currently in operation. 1) Inland Revenue Office 2) Tax Payer Service Office 3) Large Tax Payer Service Office, and 4) Medium Tax Payer Service Office When shall you use these codes? It shall be used while choosing the agency where the tax should be deposited while completing the form for depositing the taxes. Agency Code list below: S.N. Agency Code Name Address 1 305011620 Inland Revenue Office Lahan 2 305030201 Tax Payer Service office Phidim 3 305030301 Tax Payer Service office Illam 4 305030401 Tax Payer Service office Khandbari 5 305030601 ...
1 comment
Read more

What is Nepal Standard Industrial Classification (NSIC Code)? Brief Explanation

NSIC (Nepal Standard Industrial Classification) Code is an economic classification of the economic activities that happen within the territory of Nepal. It has four digits representing different economic transactors bringing in consistency in collection and reporting of the economic data. It is mainly helpful for the economic data analysis hence, the economists, researchers and the policy makers including government will benefit from it. NSIC Code is formulated in accordance with ISIC (International Standard Industrial Classification) bringing in homogeneity and comparability of economic data with the world who has adopted ISIC framework. To localize the codes, guidance has been followed as prescribed by System of National Account, SNA – 1993 and International Standard Classification of Occupation, ISCO – 88. NSIC Code has defined Nepalese economic and institutional sector in three categories, mainly, to define the principal activities of the producing agents within Nepales...
1 comment
Read more

What is Presumptive Tax for resident person having Income from Business in Nepal?

Presumptive taxation involves the use of indirect means to ascertain tax liability, which differs from the usual rules based on the taxpayer's accounts. The term "presumptive" is used to indicate that there is a legal presumption that the taxpayer's income is no less than the amount resulting from the application of the indirect method. Presumptive techniques may be employed for a variety of reasons. Simplication in relation to the compliance burden on taxpayers with very low turnover (from the tax office perspective administrative burden of auditing such taxpayers) Providing relief from the detailed calculation of tax liability thereby reducing the requirement to go through tedious paperwork reducing the cost to hire a professional. Combat tax avoidance or evasion by widening the tax bracket while making it user friendly Presumptive taxpayers have fixed tax amounts. In Nepal, there are two kinds of presumptive tax in existence: For business For vehicle owners In this...
2 comments
Read more