Businesses in Lesotho are being urged to take care when filing objections to amended tax assessments from the Revenue Services Lesotho (RSL), as a poorly prepared objection could limit their options in later appeals.

Under Lesotho law, any taxpayer dissatisfied with an assessment has the right to submit a written objection to the Commissioner General within the prescribed time limits. The objection must set out all relevant facts and legal grounds, provide an address within five kilometres of the RSL Head Office in Maseru, and be delivered to the Commissioner General at the address listed on the assessment.

The Commissioner General then considers the objection and issues a decision, which may allow or disallow the objection in full or in part. This process often includes an internal hearing at the RSL.

Experts caution that the way an objection is drafted is critical. If the objection is disallowed, taxpayers can appeal to the Revenue Appeals Tribunal. However, the Tribunal generally considers only the grounds raised in the original objection and the Commissioner General’s decision. According to the Revenue Appeals Tribunal Rules of 2005, additional arguments can only be introduced if the Tribunal grants special permission, which may incur extra costs.

Even seemingly minor points, such as prescription, can make a significant difference if raised at the objection stage. Failing to include them could prevent their consideration in an appeal, reducing the chances of lowering or overturning an assessment.

The Revenue Appeals Tribunal is an independent body with formal procedures and strict deadlines. While it can confirm, reduce, or set aside an assessment, its scope is usually limited to the arguments presented during the objection process.

Business advisors in Lesotho point out that submitting a comprehensive and well-documented objection is essential for protecting a company’s rights and improving the likelihood of a favourable outcome in any subsequent appeal.

–ChannelAfrica–