Give taxpayers 30 days after lockdown to clear dues: SC

KATHMANDU, JUNE 11

The Supreme Court has issued an interim order to the government asking it to give taxpayers 30 days after the lockdown ends to pay their taxes.

The apex court stayed the government’s recent notice that asked taxpayers to pay their taxes by June 21.

The stay order was passed by a division bench of justices Anil Kumar Sinha and Manoj Kumar Sharma in response to petitions filed by advocates Srijana Adhikari and Thaneshwar Kaphle and others against the Inland Revenue Department, Ministry of Finance and others.

The SC observed that businesses and industries had been affected by the lockdown and it would not be justifiable to compel taxpayers to pay their taxes by June 21. The apex court added that it had set a precedent recently whereby people who had elapsed the statute of limitation due to lockdown could join court proceedings, file or contest cases or submit application in judicial bodies and quasi-judicial bodies up to 30 days after the lockdown ends and the same principle should be applied to taxpayers, giving them 30 days to clear tax dues after the lockdown ended.

The court observed that some businesses and industries might face adverse situation even after the lockdown ended if new problems arose.

The government should give justifiable timeframe to taxpayers whose businesses and industries would be affected to clear their dues.

However, the finance ministry will appeal to the Supreme Court to review the interim order to extend the time for payment of taxes.

After receiving the Supreme Court’s order, Finance Secretary Shishir Dhungana said discussions had started with legal practitioners on how to go for a review of the court order.

After receiving a copy of the order, discussions were held at the Ministry of Finance this afternoon between Finance Secretary Dhungana, Revenue Secretary Ram Sharan Pudasaini, Ministry of Finance Joint Secretary Yagya Prasad Dhungel and Director General of Inland Revenue Department Binod Bahadur Kunwar.

Dhungana said it would be difficult to move the state machinery forward by providing an extension of 30 days to collect taxes. “We are facing tough times and taxpayers should know the limitations of the government.”

On June 2, the government had ordered businesses and individuals to clear taxes and file returns for the current fiscal year by June 7, although businesses have remained shut due to the nationwide lockdown since March 24.

However, the government backtracked from its decision the very next day and revised the deadline to pay taxes for this fiscal to June 21.

A version of this article appears in e-paper on June 12, 2020, of The Himalayan Times.

The post Give taxpayers 30 days after lockdown to clear dues: SC appeared first on The Himalayan Times.

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