Problems with the ‘Generous Directive’: Directive Remitting Tax Liabilities to Reduce Damage Caused by COVID-19 on Taxpayers

Posted: 21 May 2020

Date Written: May 17, 2020

Abstract

Part of the Ethiopian government’s actions to reduce COVID-19’s effect on the economy is the recently issued directive to remit tax liabilities of taxpayers number 64/2020 (the “Directive”). This directive was issued by the Ministry of Finance pursuant to the mandate bestowed to it by the Federal Tax Administration Proclamation Number 983/2016. The purpose of the directive is to reduce the damage caused by COVID-19 on taxpayers. And, the tax liabilities subject to remission are tax liabilities of before and during 2018.

In order to utilize or decline from the directive’s benefits, taxpayers are required to notify their intention to the tax authority within a month i.e. until 5 June 2020. However, now on the eleventh day, and remaining with only nineteen days, taxpayers are facing some problems emanating from lack of clarity of the directive or miscommunication of different government offices.

This piece of work, therefore, sketches the problem that I came across in helping taxpayers and calls for an explanatory statement. Its scope is limited to the directive but on the sideline, it touches issues related to the power and manner of issuing directives.

Keywords: Tax law, Ethiopia, Tax remission

Suggested Citation

Assefa, Gidey Belay, Problems with the ‘Generous Directive’: Directive Remitting Tax Liabilities to Reduce Damage Caused by COVID-19 on Taxpayers (May 17, 2020). Available at SSRN: https://ssrn.com/abstract=3603396

Gidey Belay Assefa (Contact Author)

ZEELAW Office ( email )

P.O.Box 5707
Addis Ababa
Ethiopia

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