High Court: Tax Appeal Tribunal does not have jurisdiction to hear cases related to non-tax revenue

High court has passed judgement stating that cases relating to non-tax revenue is not within the jurisdiction of the Tax Appeal Tribunal.

This judgement was passed by the High Court in relation to the  case lodged by the MIRA against the procedural judgement passed by the Tax Appeal Tribunal. The procedural judgement was with regards to the case filed against the MIRA by Amana Takaful (Maldives) Plc on 23rd January 2013 concerning foreign investment royalty. In the procedural judgement passed by the Tax Appeal Tribunal, it was stated that Amana Takaful can appeal at the Tribunal with regards to the fine incurred by the company for failure to pay the foreign investment royalty by the deadline.

However, it was decided by the High Court that as foreign investment royalty cannot be considered as a tax, and since the the amount is payable by Amana Takaful to the state under an agreement entered between the governement and the company, and as such amount is not classified as a tax under an Act passed by the parliament pursuant to the Constitution, this case does not come within the jurisdiction of the Tax Appeal Tribunal. Moreover, the High Court judgement also states that the tribunal does not have jurisdiction to oversee matters which are not clearly stated in the Tax Administration Act.

As such, the decision taken by the Tax Appeal Tribunal with regards to the procedural points raised by the MIRA was dismissed by the High Court and it was ruled that the case cannot be continued in the tribunal. 

10 Dec 13