REGULATION NO. 2000/20
12 April 2000
The Special Representative of the Secretary-General,
Pursuant to the authority given to him under United
Nations Security Council resolution 1244
(1999) of 10 June 1999,
Taking into account United Nations Interim
Administration Mission in Kosovo (UNMIK) Regulation No. 1999/1, as amended, of
25 July 1999 on the Authority of the Interim Administration in Kosovo, and
UNMIK Regulation No. 1999/16, as amended, of 6 November 1999, on the
Establishment of the Central Fiscal Authority and Other Related Matters,
For the purpose of instituting tax administration
and procedures,
Hereby promulgates the following:
Section 1
The Co-Heads of the Central Fiscal Authority may
issue administrative instructions on tax procedures including, but not limited
to, the following:
(a)
the
duty of taxpayers to keep books and records relating to their tax obligations;
(b)
the
duty of taxpayers to report the facts necessary for the calculation of their
tax liability;
(c)
the
procedure for submitting tax declarations and amended tax declarations;
(d)
the
time limits and procedures for payment of taxes; and
(e)
taxpayers’
rights to representation.
Section 2
The Co-Heads of the Central Fiscal Authority may issue
administrative instructions concerning the powers of the Tax Administration to:
(a)
inspect
and audit books and records of a taxpayer or of any other person who may be
able to provide relevant information concerning the taxpayer’s tax liability;
(b)
make
an assessment where the taxpayer has failed to submit a tax declaration as
required or where the Tax Administration has determined that the taxpayer has
submitted an incorrect tax declaration;
(c)
issue
a notice of assessment and demand for payment, together with time limits and
procedures for payment; and
(d)
issue
tax credits or refunds.
Section 3
The Special Representative of the Secretary-General
may issue administrative directions concerning interest charges on late payments
of tax.
Section 4
4.1 The
Special Representative of the Secretary-General may issue administrative
directions concerning the following procedures for enforced collection of tax:
(a)
levies
on accounts receivable, wages and bank accounts;
(b)
seizures
of property and restrictions on taxpayers’ rights of ownership in property;
(c)
sale
of property at public auctions; and
(d)
recovery
of amounts from third parties, including banks or other financial institutions.
4.2 The
Special Representative of the Secretary-General may also issue administrative
directions specifying property that shall be exempt from levies, restrictions
and seizures.
Section 5
5.1 For the
purposes of the present regulation, a ‘tax violation’ means an act or failure
to act by a taxpayer, or the taxpayer’s authorized representative, which is
inconsistent with the taxpayer’s obligations under the present regulation, or
any other regulations relating to tax, administrative directions made
thereunder, or administrative instructions issued by the Co-Heads of the
Central Fiscal Authority.
5.2 Failure
to Submit a Tax Declaration When it is Due: A taxpayer who fails to submit a tax declaration or who submits a
tax declaration after the due date for submission of the tax declaration shall
be liable to a penalty of five percent (5%) of the tax owed for each month or
part of a month that it is late. The
maximum penalty payable is twenty-five percent (25%) of the total tax
owed.
5.3 Failure
to Pay Taxes When They are Due: A
taxpayer who fails to pay taxes when they are due shall be liable to a penalty
of two percent (2%) of the balance of the tax owed for each month or part of a
month that the payment is late, up to a maximum of twelve (12) months.
5.4 Under-declaration
of Tax: If a taxpayer has not
declared the full amount of tax payable, the taxpayer shall be liable to a
penalty of fifty percent (50%) of the difference between the amount of tax required
to be declared and the amount actually declared.
5.5 Willful
Evasion of Taxes: Where a taxpayer
has willfully concealed the taxpayer’s liability, or otherwise engaged in
willful misconduct relating to a tax obligation, the taxpayer shall be liable
to a penalty of one hundred percent (100%) of the difference between the amount
of tax required to be declared and the amount of tax actually declared.
5.6 Assaulting
or Threatening a Tax Official: The Tax Administration shall pursue, to the
full extent possible, civil and criminal remedies against persons who assault
or threaten tax officials in the course of, or in relation to, their official
duties.
5.7 Further
Tax Violations and Penalties: The Co-Heads of the Central Fiscal Authority
may issue administrative instructions imposing penalties for tax violations,
where such penalties do not exceed a total of 250DM.
Section 6
6.1 A
notice of assessment by the Tax Administration must be issued within three (3)
years from the date the tax is due to be paid. Where the taxpayer has failed to
submit a tax declaration as required, or has submitted a fraudulent tax
declaration, a notice of assessment may be issued at any time.
6.2 Actions
to enforce collection of tax must be made within six (6) years of the date the
tax is due to be paid or the date of any assessment by the Tax Administration,
whichever is the later. Commencement of
a court proceeding for collection of tax shall end the applicable limitation
period.
6.3 A claim
by a taxpayer for credit or refund of an overpayment of tax shall be submitted
to the Tax Administration by the taxpayer within six (6) years from the date
the tax was paid.
Section 7
7.1 Review
by Appeals Division: A taxpayer who
contends that a determination of the taxpayer’s income or other tax base, an
assessment made or penalty imposed by the Tax Administration (hereinafter the
“official determination”) is incorrect, may request a review of the official
determination by the Appeals Division of the Tax Administration (hereinafter
“the Appeals Division”).
7.2 Procedure
for Review: A taxpayer’s request
for review by the Appeals Division shall be made in writing, supported by such
documentary evidence as the taxpayer wishes to present. The request for review
shall be made within 60 days of the taxpayer receiving notification of the
official determination.
7.3 Time
for Notification of Decision: The
Appeals Division shall notify the taxpayer in writing of its decision within 60
days of the date of request for review.
7.4 Administrative
Instructions: Subject to the
provisions of section 7 of the present regulation, the Co-Heads of the Central
Fiscal Authority may issue administrative instructions concerning the procedures
for request for review to be followed by the taxpayer and the Tax
Administration, including the circumstances in which a taxpayer may be granted
an extension of time within which to lodge a request for review by the Appeals
Division.
7.5 Final
Decision of the Tax Administration:
For the purposes of the present regulation and any subsidiary
instruments made hereunder, including with regard to enforced collection of
tax, the decision by the Appeals Division shall be the final decision of the
Tax Administration.
7.6 Appeal
to Independent Review Board: The
Special Representative of the Secretary-General shall establish the Independent
Review Board (hereinafter “the Board”) by administrative direction. A taxpayer may appeal to the Board for a review
of the final decision of the Tax Administration within 60 days of receiving
notification of the decision by the Appeals Division. The appeal to the Board shall be made in writing, supported by
such documentary evidence as the taxpayer wishes to present.
7.7 Hearing
of Appeal: The Board shall conduct
a hearing of the appeal within 60 days of the date the appeal was submitted.
The appellant taxpayer may give oral and written evidence to the Board during
the hearing of the appeal. Where this occurs, the Tax Administration shall also
be given the opportunity to present oral and written evidence. The Board shall
notify the parties of its decision, together with written reasons for the
decision, within 30 days of the date of conclusion of the hearing.
7.8 Review
by a Court: A taxpayer or the Tax
Administration may apply to a court of competent jurisdiction for the review of
a decision made by the Board.
7.9 Burden
of Proof: The burden of proving
that an official determination made by the Tax Administration is erroneous
shall be on the taxpayer.
7.10 No
Suspension of Taxpayer’s Obligation:
A taxpayer’s request for review by the Appeals Division, appeal to the
Board or application to the court for a review, made pursuant to section 7 of
the present regulation, does not suspend the taxpayer’s obligation to pay the
tax assessed.
7.11 Suspension
of Enforced Collection of Tax:
Notwithstanding section 7.10 of the present regulation, there shall be
no enforced collection of tax until the time within which a taxpayer may
request a review by the Appeals Division has expired, or until the Tax
Administration has made its final decision pursuant to section 7.5 of the
present regulation, whichever is the later.
7.12 Suspension
of Sale of Seized Property: Property
seized by the Tax Administration pursuant to its powers of enforced collection
shall not be sold or otherwise disposed of for a period of at least 60 days
following such seizure or while any of the review or appeal procedures provided
in section 7 of the present regulation are being undertaken by a taxpayer,
whichever is the later.
7.13 Procedure
Following Resolution: In the event
that a matter is ultimately resolved in favour of the taxpayer, the Tax
Administration shall refund any excess tax paid together with interest thereon
accrued until the matter was resolved. If a matter is ultimately resolved in
favour of the Tax Administration, the taxpayer shall pay outstanding tax,
penalties and interest accrued until the matter was resolved.
The Special Representative of the Secretary-General
may issue administrative directions in connection with the implementation of
the present regulation.
Section 9
The present regulation shall supersede any provision
in the applicable law which is inconsistent with it.
Section 10
The present regulation shall enter into force on 12
April 2000.
Bernard Kouchner
Special
Representative of the Secretary-General