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Amendment of Section 99 - Right of Appeal

Updated: Nov 26, 2023

A person aggrieved by an assessment made in respect of him may appeal to the Special Commissioners against the assessment by giving a written notice of appeal to the Director General within thirty days after the service of the notice of assessment.

In the case of an appeal against an assessment made under section 92, the appeal must be made within the first three months of the year of assessment following the year for which the assessment was made.

The notice of appeal should be in the prescribed form, stating the grounds of appeal and containing any other particulars required.

A person who has failed to furnish a return for a basis period for a year of assessment under subsection 77A(1) may appeal against the assessment made by the Director General under subsection 90(3).

This is done by furnishing a return for that basis period for that year of assessment along with the written notice of appeal within the stipulated time for giving the notice.

In cases where an assessment has been made for a person appointed under section 68 to be the agent of another person, both the agent and that other person are treated as the person in respect of whom the assessment was made.

If they both appeal against the assessment, their appeals are preferably dealt with together.

However, this provision does not apply to a receiver deemed by section 68(4) to have been appointed under section 68(1) to be a court agent.

In cases falling under section 67, where the principal has appealed against an assessment, the representative, regardless of whether he himself has appealed, may represent and act on behalf of the principal for the purposes of the provisions of this Act relating to appeals.


Section 99(4) specifies an exception to the general provisions of Section 99.

It states that Section 99, which deals with the right of appeal, does not apply to an assessment made under subsection 90(1) or section 91A, except when a person is aggrieved by the public ruling made under section 138A or any practice of the Director General generally prevailing at the time of the assessment.

Suppose a taxpayer receives an assessment under subsection 90(1) or section 91A.

Typically, the right of appeal under Section 99 would not apply to this type of assessment.

However, if the person believes that the public ruling made under section 138A or a certain practice followed by the Director General at the time of the assessment is causing them a grievance, they can still invoke the right of appeal under Section 99.

In simpler terms, while Section 99(4) generally excludes Subsection 90(1) and Section 91A assessments from the standard appeal process, it provides a specific avenue for appeal if the person is aggrieved by the public ruling or the Director General's practice related to the assessment.

The proposed amendment to Section 99, specifically Subsection 99(1A) of the Income Tax Act 1967, aims to expand the appeal rights for persons who have failed to furnish a return for a basis period under the newly proposed Subsection 77A(1B).

The amendment substitutes the words "subsection 77A(1)" with "subsection 77A(1) or (1B)."

In essence, this amendment enables taxpayers who have not submitted a return for a basis period in accordance with the proposed Subsection 77A(1B) to appeal against the assessment made by the Director General under Subsection 90(3).

The appeal process involves furnishing a return for the specified basis period, along with the written notice of appeal required by Subsection 99(1), within the stipulated time frame.

Tax Implications:

  1. Extended Appeal Rights: The amendment provides taxpayers with extended rights to appeal assessments, specifically targeting those who failed to furnish returns under the newly proposed Subsection 77A(1B).

  2. Compliance and Penalty Considerations: Taxpayers failing to comply with the new return-furnishing requirements may face penalties. The amendment encourages compliance by allowing an avenue for appeal.

  3. Timing of Implementation: The amendment is set to come into operation on 1 January 2024, indicating that taxpayers will be subject to these changes for assessments made from that date onward.

  4. Potential Impact on Tax Liability: The amendment doesn't directly alter tax rates but can influence the resolution of tax disputes. Taxpayers utilising this appeal avenue may see adjustments in their assessed tax liability based on the outcome of the appeal.

  5. Importance of Timely Compliance: Taxpayers should be mindful of the stipulated time frame for giving notice of appeal. Failing to adhere to the specified period could limit their ability to appeal and address grievances related to the assessment.

In summary, the amendment aligns with the broader objective of ensuring compliance with return-furnishing obligations and provides individuals with a mechanism to address assessments under certain circumstances.

It emphasises the importance of timely compliance to avoid potential penalties and disputes.

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