In June 2021, the Minister of Finance issued the Tax Appeal Tribunal (Procedure) Rules 2021 (the “Rules”). The Rules require the payment of a security deposit of 50% of the disputed amount into an account designated by the Tribunal. This provision was affirmed by the Tribunal in the case of Multichoice Africa Holdings B.V v FIRS.
The Tribunal held that the Rules were contradictory to Paragraph 15(7) of the FIRS Establishment Act (FIRSEA). The Rules make it mandatory for the Appellant to pay a security deposit of 50% of the disputed assessment before its appeal can be heard, while the FIRSEA vests the Tribunal with discretion to make an order for the payment of security deposits, only upon proof of certain conditions by the FIRS.
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