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FEDERAL NEGARIT GAZETA

OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA
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6 r-f1l\.tJ 9111 Year No. 21 ADDIS ABABA-3IIt December. 2002

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CONTENTS Proclamation No. 308/2002 Turnover Tax , Proclamation

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PROCLAMATION NO. 308/2002 TURNOVER TAX PROCLAMATION WHERb"AS, it has been determined that there shall be enacted a value-added tax to enhance saving and investment, minimize the damage that may be caused by attempts to avoid or evade taxes, stimulate economic growth, and improve the relationsl}ip between Gross Domestic Product and Government Revenue;

WHEREAS, administrative feasibility considerations limit the registration of persons under the value-added tax to those '.,.Q.D76 ~(\-r .+tJiai "ia.,..&;f.C "oo:f~-r "?9'"T with annual taxable transactions the total value of which exeeds 500,000 Birr; w.ia'J' OD7ia"l1-rt\;J-tJ{). '''toou"o- (a9'~ ;J-tJia 'Dth4C.AO:" 'foo;J-ce <?-o.e-r h1lC ~fn: o".e ~i.llll"i 'i-wM iat\II"~: . WHEREAS, an equalization turnover tax imposed on persons not registered for value-added tax allows them to Oi<?Y; <?ij.~T w.ia'J' tt:"""'ce~-ri t\D7ia4C. i : fulfill their obligations and also enhances fairness in commer""'aJ.D76 ~(\-r ;J-tJia fA'''OOU''o- (a9'~ <?1..;J-:fw.i cial relations and makes complete the coverage of the tax 4.if.,."", t\ D7 1: ~<? iJ1,mffiof "'i" , ;J-tJia P'C'f-l:i 11 system; " Mia.,.tthf "'Ci"iic :t'tJia "":E- D7W.IlJ-r "ia4C."1. II"lf 00011'1:1 NO~ THEREFORE, in accordance with Article 55(1) and (11) of the Constitution, it is hereby proclaimed as 0;"1 ooi"iJ"''I: ."i+;r 2~(1i) ~'i" (Iii) OOIPt.:r fDth follows: .,.t\w. ;J-W.~AI2

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SECTION ONE General

1. Short Tide This Proclamation may be cited as the "Turnover Tax , Proclamation No.308/2002.'

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,.,.. Federal Negarit Gazeta- No. 2131" December,2002-Page 2025 2. Definitions 1) For the purpose of this Proclamtion, unless defined otherwise in this Proclamation, terms used herein shall have the meaning as defined in the ValueAdded Tax Proclamation No. 285/2002 (hereinafter 2) 3) referred to as the "V AT Proclamation"); "Gross Receipts" means income, without reduction of expenses, including the cost of goods sold; "Taxable Transaction" means a :.upply of goods or a rendition of services in the course or furtherance of a taxable activity, other than an exempt transaction 4) described in Article 7 of this Proclamtion; "Person not Registered for VAT" means a person who, according to Article 16 and 17 of the Value Added Tax Proclamation, is not registered by reason of his annual turnover being below Birr 500,000 or threshold set by the Minister; or by reason of not 5) having applied for voluntary registration; "Person" shall mean any individual, body or association of persons and includes a business representative 6) residing and doing business in Ethiopia on behalf of the principal; "Body" shall mean any company, registered partnership, entity formed under foreign law resembling a company or resgistered partnership; or any public enterprise Or financiai agency that carries out business activities including body of persons corporate or unincorporated whether created or recognized under a law in force in Ethiopia or elsewhere, and any foreign body's business agent doing busicess in Ethiopia on behalf of the principal; "Goods" means any type of goods or commodity that has exchange value, utility and brings about satisfaction, and includes animals; 8) "Sale" means exchange of goods in cash or in kind and rendering of services upon receipt of payment, and includes goods supplied or services rendered by 9) the taxpayer free of charge; "Service" means work done for others which does Inland

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transfer Turnover Tax to the Tax Authority; and "Minister" and Minister of Finance and Economic Development, respectively.

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Federal Negarit Gazeta

No. 21 31" December, 2002

Page 2026

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Scope Unless exempted under Article 7 of this Proclamation or directives to be issued thereunder, Turnover Tax shall be payable on goods supplied and services rendered" by persons not registered for Value Added Tax. SECTION TWO The Rate of Tax and Exemption

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Rate of Turnover Tax The Turnover Tax shall be: 1) 2% (two percent) on Goods sold locally 2) for Services rendered locally; (a) 2% (two percent) on Contractors, grain mills, tractors and combine-harvesters; (b) 10% (ten percent) on others.

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Base of Computation of the Turnover Tax Base of computation of the Turnover Tax shall be the gross receipts in respect of goods supplied or services rendered. Obligation to Collect and Transfer the Turnover Tax A person who sells goods'imd services has the obligation to collect the Turnover Tax from the buyer arid transfer same to the Tax Authority. Hence, the seller is principally accountable for the payment of the tax. Exemption 1) The following shall be exempted from Turnover Tax: (a) the sale or transfer of a dwelling used for a minimum of two years, or the lease of a dwelling; (b) the rendering of financial services; (c) the supply of national or foreign currency (except for that used for numismatic purposes) and of securities; (d) the rendering by religious organizations of religious or other related services; (e) the supply of prescription drugs specified in directives issued by the relevant government agency, and the rendering of medical services; (f) the rendering of educational services provided by educational institutions, as well as child care services for children at pre-school institutions; (g) the supply of goods and rendering of services in the form of humanitarian aid; (h) the supply of electricity, kerosene, and water; (i) the provision of transport; (j) permits and license fees; (k) the supply of goods or services by a workshop employing disabled individuals if more than 60% of the employees are disabled; and (I) the supply of books. 2) The Minister of Finance and Economic Development may, by directive, exempt other goods and services.

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The Minister of ~~venue may, by directive, determine the scope and manner of exemptions provided for,in this Article. SECTION THREE Administrative Procedures

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8. Responsibility for Administration and Reporting 1) The responsibility for the correct calculation and timely payment of Turnover Tax and presentation of a return to the Authority by the prescribed deadline rests on the tax payer in accordance with this Proclamation. 2) The Turnover Tax is administered by the Tax Authority. 9. Records Tax payers subject to the record-keeping requirement of Article 48 of the Income Tax Proclamation No. 286/2002 shall keep the records prescribed therein for use in detennining Turnover Tax.

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10. Filing of Turnover Tax Return and Payment It''oPhLA 1) Tax payers subject to Turnover Tax shall: Ii" f+C'} 1-iiC :t'tJil h~r-~= (a) file a Turnover Tax return with the Tax V) 'h!,}~,}~ f'tIt-o'UL O"'m'i"'''' Oh'}~ OJC1.H. Authority within one month after the end of OJclt'l' A;J-hlt 1li\P'AtIJ'} r.,.c'} ).iiC ;rnlt every accounting period; "7lt;rOJ'tf "7.pl1l= (b) pay the tax for every accounting period by the A) f+C'} 1-iiC ;rtllt tllJlt;J-OJ'tf i\"7:"lo.f deadline for filing the Turnover Tax return. (1 +(am 0Jc f1. tJ. 1~ -0 0Jc It'I' 0 't It-0 1.H. CD2) For purposes of this Article "Accounting period" uPhLA fAO:"') ;J-hlt fODht.&\i shaH mean: ..,~;r "Aq~OJcII (a) for taxpayers classified as category' A' taxi\If.U h ,}+R' hL 'OfO "f'llt-o 'l.tJ." "7"""; I" payers under the Income Tax proclamation No. V) (110. ..,-oc htp~ <k'l'C Uitl/lun f~ljf 'u' 286/2002, but are not required to register for <k 'h'i i\ +Q.l,"7~ "1-0 C h '" r-~ .,.-0 i\ 0Jc f "7.;J-OJ VAT, the calendar month; 'hll.:r- ;J-hlt fuPuP1f11) ..,~:t' fl\.ftllTOJo :t'hll (b) for category "B" taxpayers who are required h"'r-:f OfOJ?-= to keep records under the Income Tax A) 010. ..,-OCh'P~ <k'l'C Ilit.?:/Ii!fj l1-f'~~'J'J0J0 Proclamation No. 286/2002 each three month uPlPl:" f'lUf-o uP1I1-o i\1I'/..~H- f~l)f "it" period commencing from the first day of the ..,-oC h~r-~ Oh.-rr-kf f01::" qoP-r OJ~fO Ethiopian fiscal year or when approved by the O;J-hfl-lli\P'AtIJ'} t'LL+Y; OhfDoC'.T HODi " Tax Authority, the first day of the Gregorian hoJlIJmC hquPi: fuP1:uP~f +'} 1:fOr: calendar year; f"7."'mC ffv>lt-r OJC 1.tJ.= (c) for Category "C" taxpayers, who are not th) 010. ..,-OC h'P~ <I:'I'C Ilitl/IJilj O-f'~ ~110Jc required to keep records under Income Tax uPlPl-r f'lUf-o uP1I1-o i\"7~H- f~ljf "th" Proclamation No. 286/2002, the fiscal year. ..,-oc h4.r-~ fO~-r quPi:;
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11. Assessment of the Tax 1) If, after review by the Tax Authority, it appears that a Ii" f+C'} "iic ;J-hll hmlt(a'} person has understated his tax obligation, the huPluPl Ii" f;J-hfl- IlAP'AtIJ'} f;J-hlt h"'~,}'lUf-o Authority shall issue an additional assessment. 0:\" ;J-hlt h"'~ i\.hti:A fD7.1QOJc'} :t'tllt hlt'}(\ 2) If, for any reason, the books of account are unaccepflt;J-m+ ODt1'~'} f~l(aO-r ~'}~In +(J;},"7~ f:t'tJlt table to the Tax Authority, or if the tax.payer fails to OJcIt~"(atIJAII submit same when requested by the Tax Authority, f'l.Uf-o uP""'-O-r'i ~;Jk M~:t: O"7lf I" f;J-hlth"'~ or if no books of account and supporting documents T~ fOh')f.} O;J-hlt 1li\P'AtIJ). "'}~ ++Il~H' are maintained, the Tax Authority shall assess the tax tJ"1j.,m,.fO O;J-hlt IlAP'AtIJ~ 'h'}JL+CO--f'm~'" on the basis of infonnation available to it or on the tJA+lo- OJ~fO f'LUf-o uP""'-O-r'i ~;Jk M~~ basis of market price of such good or service in the uPljf OJ~fO h"'~ f;J-hfl-IlAP'AtIJ'} :t'tJfI-,} qAOJc local market or if the market price is unknown, on the fiJ~OJo'} m,.9'" fh1A..,l\-i:'} fh1C (I)olt'l'10f 'P;Ji basis of the market price of an equivalent good or 'P;J0J0 f"7~;J-m:" htr~ f-f'(1Dltlt~') f10f 'P;J service. uPlPl-r O"7Y:'l.., ~DJla'iAII
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A presumptive turnover tax shall be payable by Category' 'C" taxpayers who are not required to keep records. The base for the presumptive turnover tax. shall be the total turnover used as base for the income tax.

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The assessment made shall be prepared in an assessment notification and be delivered to the tax payer. Delivery of the assessment notification shall be made in accordance with provisions of the Income Tax Proclamation. 5) If the Authority makes an additional assessment under Sub-Article (1), and within 30 days of the notice and demand the person assessed does not pay the additional assessment or appeal the assessment as provided under Article 21, the person is in default. 6) If the Tax Authority fails to assess the tax and notify the taxpayer of the amount still due within five years from the date of declaration and payment of the tax by the taxpayer in accordance with Article 8 of this Proclamation, the tax so paid shall be final and conclusive. In case where the taxpayer has not declared his income or has submitted a fraudulent declaration, no time limit provided in any other law shall bar. the assessment of the tax by the Tax Authority.
SECTION FOUR Collection Enforcement

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12. Powers and Duties of the Tax Authority In addition to the powers vested in it in other provisions of this Proclamation, the Tax Authority shall have the following powers and duties: 1) The implementation and enforcement of this Proclamation shall be the duty of the Tax Authority. 2) Notwithstanding any provisions to the contrary in any other law, the Tax Authority shall be empowered to investigate any statements, records and books of account submitted by any taxpayer at any time by: (a) sending duly accredited inspectors to check the statements, records and books of account, or any vouchers, stocks or other material items at the person's place of business or practice; (b) requiring the person or any employee who has access to or custody of any information, records or books of account to produce the same and to attend during normal office hours at any reasonably convenient tax office and answer any questions relating thereto; (c) requiring any person including a municipality, body, financial institution, department or agency of Federal or Regional Government to 4isclose particulars of any information or transactions relating to a certain taxpayer. 1) Subject to Sub-Article (4) of tilis Article, if any person liable to pay any tax imposed by this Proclamation is in default under Sub-Article (5) of Article 11 or Sub..Article (2) of Article 21, it shall be lawful for the Authority to collect such tax (and such further amount as shall be suffient to cover the
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For purposes of this Section, the term "seizure" includes seizure by any means, as weli as collection froin a person who owes money or property to the person liable for Turnover Tax. Except as provided in Sub-Article (3) and (6), a seizure shall extend only to property possessed by and obligations owed tothe taxpayer existing at the time the seizure is made. The Authority may request the attendance of a police officer during the seizure. Where the Authority seizes any property as provided herein ;:;.bove. it shall have the right to sell the seized goods at public auction or in any other manner approved by the Authority not less than 10 days after the seizure. except that when the goods seized are perishable. the Authority can sell the goods after any reasonable period having regard to the nature of the goods. Whenever any property on which seizure had been made is not sufficiep~ to satisfy the claim for which seizure is made, the Authority may, there after and as may be necessary, proceed to seize other property liable to seizure of the person against whom the claim exists until the amount due from such person, together with all expenses, is fully paid. Seizure under Sub-Article (1) on property of any person in default with respect to any unpaid tax may be made only after the Authority has notified such person in writing of the intention to make such seizure. The notice shall be delivered not less than thirty 30 (thirty) days before the day of the seizure. If the Authority makes a finding that the collection of the tax is in jeopardy and demanded for immediate payment of such tax (without regard to the 30 days period) provided in Sub-Article (1) and )4) upon failure or refusal of the taxpayer to pay such tax, collection of the tax by seizure of property before such period shall be lawful. If a seizure has been made or is about to be made on any property, any person having custody or control of any books or records containing evidence or statements relating to the property subject to seizure shaH, on demand, exhibit such books or records to the Authority. Any person in possession of (or obligated with respect to) property subject to seizure shall, on demand, surrender such property to the Authority (or discharge such obligation), except such part of the property is, at the time of such demand, subject to a prior secured claim of creditors and subject to an attachment or execution under any judicial process. Any person who fails or refuses to surrender any property subject to seizure, when demanded by the Authority, shall be personally liable to the government in a sum equal to the value of the property not so surrendered, but not exceeding the amount of tax for the collection of which seizure has been sought (together with costs and interest on such sum). In addition to the personalliablity imposed by SubArticle (8), if the failure or refusal to surrender is without reasonable cause, such person shall be liable for an additional charge equal to fifty per cent (50%) of the amount recoverable under Sub-Article (8),

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Federal Negarit Gazeta-No.

2131"December, 2002-Page2030

10) Any person in possession of Ithe property of a taxpayer in default and who surrenders such property or pays the tax in occordance with this Article to which the owner is liable, shall be discharged from any obligation or liability to the deliquent or to any other person arising from such surrender or payment.

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14. Preferential Claim to Assets 1) Subject to the prior secured claims of creditors, the ,Authority has a preferential claim upon the assets of the person liable to pay the tax until the tax is paid from the date on which tax becomes due and payable 'Lit f:t.lt ;rtJlt foutJLA "l~;r ClAO~ (\lD- U11~ oo11~ under this Proclamation. f;rtJ{}ClAP'Al1J'} f"'1.9"~"~ ",e 2) Where a person is in default of paying tax, the ,elf t.CPA:: Authority may, by notice in writing, inform that O7'iTlD-9" (\lD- :t'tJlt footJLA "l~;rlD-') ClAou mllJ~ '1'4.-1-;;: IFlf f"'17 ~,}f,lF" f;f.tJ('t- ClAP' person of the Authroity's intention to apply to the AlIJ'} O'l'4.~ 9"tJ'}l~ fA-I-hLAlD-'} ;rtJlt ~'i Registering Authority to register a security interest in ;rtJ{}-'} A07lthLA f"'l.1.t.1lD- ~ '}:''It.4' (I, f"'l.flth~ any asset which is owned by that person, to cover any AlD-'} m{;L1,O7lthLA ~'}.It~A f;f'tJ('t- ()J; f"'l.LA unpaid tax together with any expense incurred in "l0~ (\(1)0 V11~ OCPlt~'i -I',etl ~'}.It.f.,e ,)11t.-I:'} recovery proceedings. ~()"1f fO'/..(\'I' oolF.,.') AOOU10lD- httA f')""~ 3) If the person on whom a notice has been served under f"7.1A" O7ltm'}.,.<tf A-I-OO"1fllD- (\lD- ,e(\lIJA:: Sub Article (2) fails to pay the amount specified in O'}o-lt h'}+" (I) f-l-1AOlD- O7ltm'}.,.<tf f1.t.(\lDthe notice within 30 days after the date of service, the ;rtJlt h4.,e O7ltm'}.,.<tflD- 01.t.(\lD- Oc!).,.'} m-lt'l' Authority may, by notice in writing, direct the ;rtJ{}-'} fAhLA ~,}1.IF" f;rtJ{}ClAP'AlIJ'} Registering Authority that the asset, to the extent of A,}-ot.~ ou1f;Jo.m. flAP'AlIJ'} f-l-OOU10m- (\m. the defaulter's interest therein, shall be the subject of V-O~ ClAThLAm. f;rtJlt ()J; oom') OCPlt~'i -I-,etl security for the total amount of unpaid tax. ~'}.It.f.,e ~M1f ,e.OllJA:: 4) Where the 1).uthority has served a notice on the (() OOIPt.~ f;rtJ{}ClAP'AlIJ'} ;rtJlt O'}o-lt h,}"''' (\m. Y11~ nCPlt~'i -I-,ett ~ 1.!l.f.,e Registering Authority under Sub-Article (3), the f"7.LA"lO~ ~()"1f f(\m f1.1F')-=oP1f;Jo.m. ClAF'AlIJ'} O7'i:f Registering Authority shall, without fee, register the lD-'}9" tJ~1 ",em,e:" '}-ot.-I: OCPlt."''i ~ '}.IlJ'1f notice of security as if the notice were an instrument f1.l(\m.'} ~()"1f ~ ') 1.OV/'iTm.9" OV11-1: ",e ~ '}J;A . of mortgage over or charge on, as the case may be, fool"'- (\H~...f.OOU"lClA::.,.1.9" f1.A f-l'om fool"'such asset, and such registration shall, subject to any oo-o~ ~,}1.-I-mO'" IFlf-=fCPlt~'im. 9"1I1C1f"7.LA prior mortgage or charge, operate while it subsists in 1m.') ;rtJlt A07lthLA OO7'iTm.9" OOAn- O~"l all respects as a legal mortgage over or charge on the ~,}1."",(\m 001"'- m,e9" 'h'}1.07'iTm.9" 1\." ()J; asset to secure the amount due.
oo11~ 'I' f4: ~ ",e f"'l. "'C11 f"'1.9"~"~ CPlt~'i f-l-(\lIJTlD- fl\.f\o"f hOJ;~?J"f f:"f:"'l.f 0011~ ~,}1.-I-mO'" IFlf-=OlltJ hCP~ OOIPt.~ ;rtJlt -I-h4.,e h"'l.IF,}O~ .,.') h '}It.,. -I-h~A" ~lthhA"'O~ m,e9" h~llFlf ,e.f.mt-A:: 15. Taxpayer's Safeguards Any property seized under this Section 4 shall be seized, held, and accounted for only by the Authority. No other agency of the government may require the property seized to be transferred or given over to it for any cause whatsoever. If any property seized is sold, any portion of the proceeds in excess of the person's liabilities shall be returned promptly to the owner.

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16. Duties of Receivers 1) In this A..rticle"receiver" means a person who, with II' f"'~\1o. ..,1.:Jrespect to an asset in Ethiopia of a registered person, Ii OlltJ h'}.,.W lD-lt'l' "-I-t.\10." "'IA.}- Oh..}-,.kf is: CD-l\'rf"'l..1~'} f;rhlt hof.~,} VlI.}- O-l-ODAh-l-f (a) a liquidator of a company; v) fh-Cl'}1 n-o~+ htil~ II'cr f-l-(\fODf (b) a receiver appointed out of court or by a court; A) h~Cf: 0.+ (Do~ tD.ef" O~f: 0.+ f-t-l"OD (c) a trustee for an unrehabilitated insolvent; "'~\1o.f (d) a mortgagee in possession; th) Oh.Uft- ID-lt'l' f"'f.1~'f:C~+ QAh1.t-f (e) an executor of a deceased's'estate; or -) (III"'" O"";l-CD- JPC f"t1~1 IP) f"..,., (aID')-o~+ f"'l.J'lt-l-.-sf:CI OJ.e,.

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17. Notification of Changes A registered taxpayer shall notify the Authority, in (I1"f1 it i\ 0'/ ll;/" m:t Ii' t\ (Do writing, of O'/liTlD-IJO;l-hll h<f.f.: (a) any change in the name, address, place of llao-: h.(-t,.?fw: f1..,.(FlrlD(1;1' : hf.l~1.-I:: 6' business, constitution, or nature of the principal (Df.l}" ;l'hll fO'l.hLAfI-r') CP1~lD- f')..,f: p(,. taxable activity or activities of the person; and ., ,q(,..} ~ 1:"Il:l'ft mf.1}" fO'l.fh'ilD-C;:flD-1 (b) any change of address from which, or name in 'f.~-r: which, a taxable activity is carried on by the (,. I' ;l-hil fO'l.hLAO.} f,)"',(- F h 1:t{I:I'(l, fO'l.h'i"m registered person, ') 11 -r1 h'(- (,.?f m f.1JO it IJO: within 21 days following such change. f.,.fl ~1f.1f~ f.U1). Ii;l'hft. qt\FAII)1
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any other person conducting a business on behalf of a person legally incapacitated. A receiver shall notify, in writing, his appointment or his possession to the Authority within 14 days after having been appointed to the position or taken possession of an asset in Ethiopia, whichever first occurs. The Authority may, notify a receiverin writing ofthe amount which appears to the Authroity to be sufficient to provide for tax which ii. ur will become payable by the person whose assets are in the possession of the receiver. A receiver: (a) shall set aside, out of the proceeds of sale of an asset, the amount specified by the Authority under Sub-Article (3), or such a lesser amount as is subsequently agreed on by the Authority; (b) is liable to the extent of the amount set aside for the tax of the person who owned the asset; and (c) may notwithstanding any provision of this Article pay any debt that has priority over the tax referred to in this Article. A receiver is personally liable to the extent of any amount required to be set aside under Sub-Article (4) for the tax "referred to in Sub-Article (3) if, the receiver fails to comply with the requirements of this Article.

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SECTION FIVE Appeal Procedure 18. Review Committee Members of the Review Committee shall be appointed by the Minsiter of Revenue or the competent authority of the regional government, as appropriate, upon the recommendation of the head of the Authority.

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19. Powers and Duties of the Review Committee 1) The Review Committee shall be accountable to the head of the Authority and shall have the following duties: (a) to examine and decide on all appolications submitted by tax payers for compromise of penality, interest and on the tax assessed; (b) to gather any written evidence or information relevant to the matter submitted to it; (c) to summon any person who directly or indirectly has dealt. with the assessment, to appear before it to answer questions about the case underi~investigation;and
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lD-Uf~ to review the accuracy, completeness, and compliance with this Proclamation. of the tax assesment made by the Authority. 2) The Committee shall only review applications submitted to it within 10 days of receipt of tax assessment notification. 3) The Head of the Tax Authority may approve the recommendations or remand the case, with his observations, to the Committee for further review. 20. Waiver of Penalty The Review Committee may waive administrative penalties, wholly or partly, in accordance the directives to be issued by the Minister of Revenue or by the competent authority of the regional government, as may be appropriate. (d)

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~li' f."'"~ li~tJl1I1AP'AllJ1 f"'''ALtD-1 f"'Q;\,II'/~ ;J-tJlt lD-It~ f"7.ft'fDlJO 1I'/e;:flD-9" ;J-tJlt h4-f. f;J-tJlt lD-It~ 21. Appeal 1) Any person who objects to an additional assessment II'/lt;J-fD-t1 h1.~ltlD- fDf.9" OM1.1:;J- hllJ~ \1"7.-1: made.by the Authority has the right to appeal, within lt1' t1Jolt~ h.,.ltm 0"" .,., "f.9" (: 0 c!)(IP" It) +e;"" lD30 days from the receipt of assessment notification, nI1AP'AllJ.,. f.,.wlt)ID-1 "'Q;\,OI/~;J-tJlt Y noo", ('1,..1t TClt''''') I1AP'IAII'). I: 0.,lt111 t\,...,q~ or from the date of decision of the Review Commit"' f."lI1~ fll'/:"~-o oo-o-r hAlD81 tee, to the Tax Appeal Commission by depositing in It'''l. "'"~ (Ii) OOIP~:" ff."'"~ cash with the Authority 50% (fifty percent) of the I' OflU h1+'" 10-lt 1\'+" M1.1:;J- +C!' f..,-oC f."'"~ .,.ql\. ;J-tJi'I h4-~ additional tax assessed. f.,.mlt.,O"'" ;J-tJlt Oao-AfD1-9" Oh4./A 2) If a person appeals in accordance with Sub-Article n"'~""t foohLA ..,1.:1- 'h1.1;l\O'-'" lD-It~hltlllO:" +1 h1it.,. (1) and the Tax Appeal Commission determines that 00 iP"Uf +1 1.H. lD-lt1' ;J-tJlt h4-' fOl/.,LA..,O"'" the person is liable for the additional assessment, he .,.Q;\,B'/t ;J-hlt I1AhLA 1'4-"'~ "lD- II shall be in default unless he pays the additional f:' OtI.U h'+'" 10-it hi.,.", (Ii) O"'OOAh"'lD- 1.", assessment determined by the Tax Appeal CommislD-lt'l' .e."'Q~ 111A+~0 fjl1j\P'AllJ.,. f"'fDMmsion within thirty (30) days of the rendition of such a "'~II'/~ ;J-tJii ..,.tJtJA2j=e; fOOQ;\,~7ftrlf fDJtIw-", decision. "'h4-.e. f.tre; IA II 3) If no appeal is made within the period prescribed in g. fllt) h1"'~' 1tN" h'+'" (Ii) Y:');11. 'h11."'lIlO.,. Sub-Article (1) of this Article, the Additional 111ft 010. ..,.,lC hCP~ ltAf."'"~ f1'~""'" h1.,.P'.f assessment of the tax made by the Authority shall be 'h11.h..,I1-o.,;J-TlD- OflU h'f'~ OOIP~:" f"'fD(a"" deemed to be correct and final, and shall be ;J-tJf\:f'} O"'l.ooAh'} A"7.+Co- f."'lI17t:f .,.L''''I. immediately payable. f.1Te; A- II . 4) Without prejudice to Sub-Article (1) of this Article, SI' Mltl.l;"" ~"4.""" the provisions of the Income Tax Proclamation f-t'fDc"t"lD- ..,l1C 01l:J;A fDf.9" f;J-hc"t- QAP'lAtrJ' relating to appeals shall, mutatis mutandis, apply to fc"tllllD- co-It~ ..,.htJA h1-1.A9" O"7.~ O"7.+C-o-tJCt!C . appeals regarding taxes imposed by this f"7it~.cs1: ~"L""" f1'fDl1"tD-1 ;J-tJl\ fDf.tp fl1AP'1A tfJ.,., lD-It~ f"7.ft'fDOOlD- (alD-f.tre; IA II Proclamation. 22. Burden of Proof tJ ti:A It.(- It'''' The burden of proving that an assessment is excessive or hlt.,.JS~~ce :"llJ.,..:f that a decision of the Authority is wrong is on the person objecting to the assessment or decision. f1fih;J-mcf:n 01.tt. I1A"'I:"~-o ltA~~_(J'J" :"llJ:" SECTION SIX ~r' f:t'hh OJUJ h'P~ Ot\." h\.:\1 'h1JtL1.9" h"'fD(a'tmAdministrative Penalties i' ota.,..,.C t o.,.mlt"lD- 1.tt. lD-h'1' f;J-tJlt "'Ih;J-fD:" 23. Penalties for Late Filing ..,1..;J-lD-1 IA"'lDllJ ;J-tJlt h4-f. 1\""'fO"" A'h11 1) Except as otherwise provided in this Proclamation, a .l;1~ tOC mf.r ffD~ h4.A (Ur~lD- "i.fI. f 1/A.,.hL person who faiis to file a timely return is liable for a AlD-") ;J-hi\ ~ OOD'" (h9"ta:r 'TClt,..,.) S~ OOD'" penalty equal to 5 per cent of the amount of tax ("II "SJOlt"" 'TC(a1T) 'hlttt/I"" .(-~lt 00+MiJ. underpayment for each month (or portion thereof) f.n~i\A .aJ during which the failure continues, upto 25% fDf.1f6 f(j)~ f:J-nlt #flt;J-mcf:1 oo:"l'il 11/\0:" fDC I' (twenty five per cent) of such amount. tJti:A Otr'lfDo 1.tt. f;J-hlt OI/l\;rfDcf:II"+lO c"tCD2) The penalty under Sub-Article (1) of this Article is OIlU h 1+Jt 10-lt h ,+ Jt (Ii) 1:1 ;1'1. ODei' G"" limited to 50,000 Birr for the first month (or portion flPll.h~AOJo oo+Ri h-oc y it (Y9"1t1(U) hf.OIA'1'9" thereot) in which no return is f1led. II 3) For purposes of this Article, an u~derpayment of tax IA.,.hLA ;J-hlt ~lD-f"7.I1j\lDAllI' h1+'" hL'IJ9'" is the difference between the -tax required to be O;J-tJlt "711;J-1Dcf:1 "f. oo;J-f"" O.,OlO"" 'he; ;J-tll1oohLA QAO"" .,., O-rb4f.AtIJo ;J-tJlt ODl1hA IAtIJo shown on the return and the amount of tax paid.by tIJo.. IAf..,:" 'l the due date.

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In any event the penalty may not be less than the . smaller of the two amounts: (a) 10,000 birr (ten thousand Birr); U) .fic I 1(u (1\P'C 1(u l1C): (b) 100 percent of the amount of tax required to be h) O;J-hl'1 "'I1'1;J-m-tJ' I\~ OOOOAh'}- h~OlO.}shown on the return. f;J-hl'1 oom1 f 000"" (1\11: 00"" TC(}1.}-)1I H..,U O.,.hLh ;J-hl'1 I\~ I'1h"'l..;J-(}l1 mh1: 24. Late Payment Interest (a) If any amount of tax is not paid by the due date, the U) oohLA O~OlO-r1.tl.I\A"'hLh ;J-hl'1i oohLA person liable is obliged to pay interest on such h~OlO-r +1 ~l'1h"'hLhO.}+1 l}hOJo 1.tI. amount for the period from the due date to the date 0J01'1'1' ;J-hl'1 h4-~ mh1: foohLA ..,1..;J- 1\hO.}-1I the tax is paid. M OltU 1\1+1\ 10-1'1 h1+1\ (U) oolPl-r f"'l..h (b) The interest rate under Sub-Article (a) ofthis Article ~OO..,. LhOJo mh1: f"'ll'1hL! Ah l}hLOJo f~l1 is set at 25% (twenty five percent) over and above 01..,1: l}1haT I'" &- I\~ O'PhOJo hc;:"'~OJo the highest commercial banks, lending interest rate f"'101.~J' mh1: 9'"1l))'1\~ ~~ 000"" ('/ J' h9'"l'1.}that prevailed during the preceding quarter. . TC(}1-r) ;J-hl\-O.}- ~1F'iA II
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O;J-hl'1 I\~ f"'l..Leao- m11:I\-T I'1h"'l..oo~O-r P'~ P'C~-r . OltU htt:A f"'HI.H~-r O;J-hl'1 I\~. f"'l..J..Oao- m11:I\-T ffD11:h~ ...:,...ih.,.., 000.,.1\I\tt: f"'l..LBao- OOOIF~h()' . f"'l..oolPl.,.OJo f f"7.;J-fOJo ~'i~..,l}:OS f"'l..+COOJo Om1 26. Tax Evasion 1:h~ 00:"" ih.., 1"''' P'C~-r ODlPl-r ~1F'iA II A person who evades the declaration or payment of tax, ft. ih.." 0-1l)1'1 ;J-hl'1 I'1l\hoohLA commits an offence and, in addition to any penalty under ffiO(}00J01 ;J-hl'1 J'1\1'1;J-fD+ m~9'" f"7.Lh..,0-r1 ;J-hl'1 J'AhLh tI'f'iTOJo9'" (}0J0fD11:A ~11.LBoo ~~m&-A II

SECTION SEVEN Criminal Offences 25. Procedure in Tax Offence Cases A tax offence under this Section is a violation of the criminal law of Ethiopia and shall be charged, prosecuted, and appealed in accordance with the Ethiopian Criminal Procedure Code.

Section 6, may be prosecuted and, on conviction, be subject to imprisonment for a term of not less than 5 (five) I'1hlF.,9'"OltU h'P:f htt:A 1; oolPl-r h"7.liJAO.}o 00+65J. years. O.,.Q;1."'M 'I'4-"'~ 001F~ OC;:C.(-o.-r (}.l:J1'1' h~ l}oo.}27. Making False or Misleading Statements 0"'l1'J1'1 ~P'&--r ~+Il)/'\ II . 1) A taxpayer who, ool)l' I'1A"'I:"ll1 n. fth(}.}- m~9'" h""T (a) makes a false or misleading in a material 6, DfI'i:ftDotr;J-h 1'1h"~ particularstatement to a tax officer of the u) h;J-h(}. l}hP'AIl)1 IP&-"'~ h11:1 ~'I'11 0"'00 Authority, or hh.,. fU(}-r fD~9'"h""T ool)l' l+l0 i m~9'" (b) omits, from a statement made to an officer of h) h;J-h(}. l}hP'AIl)1 IP&-"'~ t\.+ClI h"'l..1l}0J0 the Authority, any matter or thing without ooel,h.. t\.f1.C.., 0J01'1'1'00..,h"0J01 h""T which the statement is misleading in a material O"7.TA h\\:\1 oota"'-r f"'l..1l}T0J01 '1'1'(lT particular. J'1'1+l "'1.IF~f commits an offence and is liable on conviCtion. ffD11:A hl'1 ~lPl-rO;J-AII 2) Where the false statement or omission is made f"'(}mCD- m~1JD ool'}.,..}I' f th(}-r 00"'''''0J0 without reasonable excuse, f"'l..1l}0J0 ~'I'1I f.,..,.mOJo J'hO-t 9'"h1 f.}- fin (a) and if the inaccuracy of the statement undetec~11.ii'~f ted would have resulted in an underpayment of u) fOO..,""OJo -rhhh~ IhooIF1 t\..f.lI'10.}tax by an amount not exceeding 1,000 Birr, the . Ift-~tr t\.hLA f"'l..1l}0J0 ;J-hl'1 hllC 6 1(11 taxpayer shall be subject to a fine of not less O"'l~OA'I' h1(a ~1JlhJ..A f"7.!1.C1 hlF~ than 10,000 Birr and not more than 20,000 Birr
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29. Failure to Notify A person who fails to notify the Authority of a change as /tCD--r' 1/t..,...;J-ID;r. required by Article 17 commits an offence, and on J\,+W 11 O"tl"CD- ODIPl+ OU-~;J-"T ,,~ f"'1.~"" AdJotP":f1 A;J-hc\o '1AP'AfIJ' ,""';J-ID+ "'~TdJo" (8dJo conviction:

f;J-ht'\- ,../tP'AIfJ1 IP&-"'~ 1D1.;J-h... h4-' "..,~ P't- f1;J- /t"...,'1+ l/tdJo1 ODt(1+ OD11.of1l1 .

-r4-.,.tt -II"), 04=C~ n.+ f\l?1-r' u) '1'4.-1: f.,.U-"" If') ID~" Ob'1~ :fA'" 'S~+ fll"t 7\'''lI"t b-OC 1 n: 0"711'" ,",1"t(1 -+17\~ Oh'~ 101'+ 7\P't-+, A) 0tt.A-":f lJet.:f-,,":f h-oc I n: 0-711'" """-0 01'''''' J\~ 0,. .C 7\P't-+,
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(a)

where the failure was made knowingly or recklessly, is liable to a fine of not less than 10,000 Bin-and to imprisonment for one year; or in any other cases, to a fine of not less than 5,000 Bin- and to imprisonment for a term of six months.

(b)

30. Offences by Tax Officer j. O;J-hft-f'lAP'Ann 1Pt-.,.1JI":f 1) Any tax officeror former taxationofficer employed f-..U"" -r4.-f":f in carrying out the provisions of this Proclamation Ii- fILII') J\"~ ~;J1."":f A.,,,,U.,. O;J-h... '1AP' Alii), ftHomt 1Pt-.,.tt .~,. f+1:'I" ++trtt who: (a) directly or indirectly asks for, or receives in ftOt' connection with any of the taxation officer's U) 0...1 -lPt+ A./1T",. h-",'1 h~' .~,. duties. a payment or reward, whether 1IA"+ GNI\ h+tmtO+ """'1C;JC0.,.,," pecuniaryor otherwise, or promiseor security .,.".,., .,.,. .,..,.,.,..f'lAlI"t ""~ """-0 J\,,ut .,.,. M ..,.t+ h~' .,.,. laIR;Jfor that payment or reward, not being a payment or reward which the officer is law1A+ 'm'''' .,.,. '+tOA! Ah~I" .,.,. . . fully entitled to receive, or AlaIR:J-" +184. .,.,. ..,..,. fm'+ .~,.

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Federal Negarit Gazeta - No.213111 December, 2002-Page 203S

(b)

enters into or acquiesces in anagreement t9 do

~cP~ 1:') ?1.,,"f ?C OJy,1J"h+(amaJo ~"4.~"" OD~t}1J"~L'OIJ" ?C f"7.:J'l,) +..,flC AODLOIJ"I Dl/1:l'1 f"7.1qaJo') h"71:l" AODfi:+1:1 AOD:t'+-o1 +10. 1/:\.1f~,) ~'IC O:t'hla "y, f"7.LOIJ",) fDl/~OCOC +..,qC AOD1.0:"1 OJy,1J" O"7.la1'C AOD+"'OC aJoA f1q OJy,1J" 0"7.1qaJo Dl/CjTlD-1J"aJo/:\. aJola1' Off.tJ +..,q C OD+q O~ ') f"7.1 Ity, lalJ"IJ"H' f(aml
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or to abstain frQmdoing, permit, conceal, or connive at any act or thing whereby the tax revenue is or may be defrauded or which is
contrary to the provisions of this Proclamation

or to the proper execution of the taxation . officer's duty;

commits an offence and is liable on conviction to a fine of not more than 50,000 Birr and to . imprisonment for a term of not less than ten
(10) years and not more than twenty (20) YC",Ms.

2)

I'

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[.

A tax officer or a former tax officer engaged in carrying out the provisions of this Proclamation, except such information is required by the Commercial Code of Ethiopia to be published in the Trade Gazette, who, (a) discloses to any person or his representative, any matter in respect of another person, that may, in the exercise of the taxation officer's powers or the performance of the taxation officer's duties under the said provisions, come to the taxation officer's knowledge; or (b) permits any other person to have access to records in the possession or custody of the Authority, ~xcept in the exercise of the taxation officer's powers or the .performance of the other's duties under this Proclamation or by order of a court; commits an offence and is liable on conviction to a fine of not less than 10,000 Birr and to imprisonment for a tenn of not less than two (2) years and not more than five (5) years. 3) Nothing in this Article shall prevent a taxation officer from disclosing: (a) any document or information to: (i) any pef!~onwhere the disclosure is necessary for the purposes of this Proclamation or any other fiscal law; (ii) the Auditor-General where the disclosure is necessary for the performance of duties .

entrustedto it by law;

~i'

(Hi) the competent authority of the government of another country with which Ethiopia has entered into an agreement +l"" "'-""V-til h"'h-"f ~1~'f ?C q1.l for the avoidance of double taxation or .,"faJo it rlJ" ~..,. OD IPl"" ~ eIJ q 11 TaJo for the exchange of information, to the "" fA.h-"f ~1~"f qftFAtrJ'i"f1 extent permitted under the agreement; (iv) the Ethics and Anti-Corruption Commis., (iv) Oih.., f+ltmaJo') +..,qCli ~,,4.~"" sion where the disclosurcds necessary for AODdJlIJ"" ~laL"1. "-1f')1 AF~ 1J"",qCCj the performance of duties entrusted to it AOl ao-ll Cjit "7.1i') f by law; ih.., (v) hlltJ O"y, "A+1AO ADl/CjT(D-1J", (v) a law enforcement agency not described ~ laL~ "7. OD/0."" .., 1..:t'lD-') A OD LOIJ" above, where the Minister of Revenue issues written authorization to. make disf"7.1la "fAaJo OD l)f )\')-'lltm8J' h10.,,"f closures necessary for the enforcement of "7.t 1\-1: C 01\ th-tt: "-:t'II1I11 the laws under the agency's authority; or A) ~"4.~:t'TOJ-') (\OUCDtrJ"" ~I\L"1. hl\hlf~ (b) to any person in the service of the State in a 1:l11 ~,)1:,) (taJo 1l1-+iD- fDl/Y,m:""" ODl:( revenue or statistical department, information ,,"f') ADl/CjTaJolJ"(1OD'}'"F"'" '10. F to "y, which does not identify a specific person AOV1 n..,IA h Cj t\ l\:t'''''1\-t tll\ OD /0."" where such disclosure is necessary. for the performance of the person's official duties. 1Pt-"'~1 31. Unauthorized Tax Collection hOD lam"" ~1"'1.aJo""1 Any person not authorized to collect tax under this /tY,L+1: :t'hla I\i\OD"lI(a-o Proclamation who collects or attempts to collect tax (or Dl/CjTaJolJ" (aaJoOff.tJ ~cP~ ODlPl"" taY,L4>1:f\"":"hl\ an amount the person describes as. tax) commits an ",.. CD f.1J" ~') l.:t'h la f"7.:t' Y, tIfi:1 f It 0" (1 OJ offence and is liable. on conviction to a fine of not less "''' f\ODlt-o(al1 flJUhl OJ'))!/:\' fLOOD Iftii 1'4-+;;: ODI1'~ $an 50,000 Birr and to imprisonment for a term of not lessthan five (5) years and not more than ten (l0) years. fDl/f,)fi f1'),,11 OD+Al Ott:C1: 0."" "-l?11' hilC 2ft
~Cj h~"'ll"" 1OD"" ODI/I111 hJ\laC 1OD.}- ODl/Y,O/:\.1' ).p't-T 1A>trJA81

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~;J6:" .?It.tIJ4I1'C Iii :l'UUfP' II +, Iii11~ 'H". Federal Negarit Gazeta - No. 21 31" December, 2002-Page "'70 l;J- ;1-+

2036

Aiding or Abetting 1'1"; 1:1,?1.9'"f ~1JlnJf1- fl.~: A person who aids, abets, incites, or conspires with fOl;J-;1-: fF.,,: fDf,9" O"7.lvrC f.,.110l ~1~l'" another person, to commit a violation of this it ~ 1 ~ "'~ ID- 'J'af."'~ fflU') h"~ 1:1 :J1.sP"f 0O!J1f) Procla.mation, also commits an offence. He may be 'J'4-'-" "/"""'1A1I hlltJ Ol\f, f"'"I."~'-"1 f ~KOO(lID-i subject to prosecution and, on conviction, be liable to a 'J'4-"'~ 0011'), Otj:C~ 0."" ft.1.;J1'J' 6C";;J-CD-1fDf,'" fine and imprisonment, not in excess of the amount of ,-".,H1 ~ , A(am0+ '1'4-'-" h+m(a ~ID- f11"00 ~ 'i fine or period of imprisonment provided for the ottence f~P.t-'-" :"11):"t}AOl\m 01')"-(1 "'i O~,...t-+ f,4'IlJAII aided or abetted. t!)~. 01:c:E-.,."f f"7.Lt.'" 'J'4--133. Offences by Entities Ii' OH.IJ 1'1'}"'W 'to-n 1'11"'~ (r) f"'~~11fD- ~11.'" 1) Subject to Sub-Article (3) of this Article, where. an mO.,. l1''iI 1\11: 1:C~+ ,e.tJ', 1'1"~ 000"'''1\~ enitity commits. an offence, the person who is a 1.", f,(-C;e:i: 'J'~+ fLKODh11.11'~ 'J'4-i: O.,..LKOD manager of that entity at the time the offence is P't- J\llh.f~ fl1'~ "7liTID-9" (aID01:C~i: f.,.l,K 00ID-1 '1'4-+ ~1~4U00 .,.of'J'e" OfltJ J\'P~ committed, is treated as also having committed the f 1-11) I\ID<:"IIJ + .,. ~~ "7. f,11'1 0;1-1AII same offence and is liable to a fine and imprisonOlltJ J\,.,.W 10-ll 1'11.,.W (r) f"'~~11IDh1~'" I' ment under this Proclamation. 100.,. .F'ii D7'iTID-9" 1:C~"" OfltJ1'1"~ 001P1."" 2) Subje~t to Sub-Article (3) of this Article, where an il.hLIA f"7.1'I(J}o') mf,9" 1'1"~ ~11.;f'tlit f"7.~'J' entity commits an offence by failing to pay an r4'l I.ID-' "7'iTID-11}O "'1\ tltt:f 10. "'f~C'" amount of tax, including an amount treated by this ~ 1~11'~ 'I'4-i: h.,.UODO+ 'UI. hit.,.1:"., 0~t1~"" Proclamation as though it were tax, the person who ...1:n+ fDt-+ m-ll'J' f1:C:E-i: P'&- hllh.l~ f~O~ was a manager of that entity at the time of such (asP"f h1:C';i: ~'i hl\.l\ID- (aID- ;JC Oh11:H'Cj failure or was a manager within six (6) months prior O"''imlA f;J-tJf1- 111\P'AIIJ1 I\"7.LIA11D- ;1-hit 'h'i to the date of commission is jointly and severally I\.fr-'f h~J''''f +mJ'-t f,11''i/r:: liable with that entity and that other person for the f' o,o-n "''''Jt (Ii) ~r; (I) f.,.1.~1,.:"i V) 'J'4-i: f.,.l.KODID..,I\lla- "fID-:" fD~9" ""il amount due to the Authority. ,.",,0:" h"'~ 1 3) Sub-Articles (1)and(2) do not apply where, a\) 1'11.(' ~1t:'f1 O'J'1:J><J: f"7.f,e. flm- 0""00 (a) the offence is committed without that person's ""f, v-~;J- ID-ll'r f'J'4-i:1 ooU9" I\ooh"hlA knowledge or consent; and f,fD n";T" IA .,.-11 <J: sP'f1 I fr- f"7. 1 ooi: 'J'1 :J> (b) that person has exercised the degree of care, ",,0.ID-1 +;J+ ~'i f1'1lPlrC 'J'O-o f.,.".,I\O"" diligence and skill that a reasonable prudent ~C9")f ..,I\flO' fDll,. f"'1; ~1~11'~: person would have exercised in comparable .,.l.A""l. 1'1,e.II')'O+9"11 circumstances to prevent the commission of g. I\10-ll 1'11.,.W (Ii) ~'i (I) 1'1l.AA9"" P't- 1'1ilh.f~" the offence. "71\ :r-I V) f"lich'i "710C'} O"7.ool\h+ f"lich'iID4) In Sub-Articles (1) and (2), "manager" means, "'10C 1'1111A mf,9" f"710~ P'&- "llh.f~ (a) in the case of a partnership a partner or
117'i'(Dc'l'" (a(J}o filii

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32.

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fh-111 fID- f P' t- oo~i

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manager of the partnership or a person purporting to act in either of those capacities; (b) in the case of a company, a director, manager, or officer of the company or a person purporting to act in any of those capacities; in the case of an association of persons, a manager or a person purporting to act in that capacity .

h~~lltJ ~I\kH"'f O1'11~ ~1~"7.1Pt- 11''i f,1 f"U" th) ffl9''f1 1-111.+ O"7.ool\h+ f1-o1.-I: P'&1'1llh.f~ fDf,'" 01lV- ~I\k~+ ~1~"7.1Pt1I''i f"t;J-"1
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Offences by Receivers 1) A person wh9 fails to comply with the requirements of Article 16(4) commits an offence and is liable, on conviction to a fine of 5,000 Birr and to imprisonment for a term of one (1) year. 2) Where a person is convicted of an offence under Sub Article (1) of this Article for failing to set aside an amount as required under Article 16(4), the court may, in addition to imposing a fine and prison sentence, order. the convicted person to pay. to the Authority, an amount not exceeding the amount which the person failed to set aside.

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Federal Negarit Gazeta- No. 21 31- December,2002-Paae 2037

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3S. Publication of Names 1) The AuthoritY shall from time to time publish '.by notice in a Gazette a list of pei10ns who have beep .,7H."'~ convicted of offences under any of the provisions of Articles 2S to 34 of this proclamation.
:J-:"'"
,

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2) The list published in terms of Sub-Article (I) shall specify: (a) die name, address. and principal enterprise of the person; (b) such particularsof the offence as the Authority may think fit; (c) the tax period or tax periods, in which the offence occurred; (d) the 'amount or estimated amount of the tax evaded; and (e) ,the amount. if any. or the additional tax imposed.

..

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SECTION EIOIIT MiscellaneousProvisions 36. Duty to Cooperate 1) All F~ and Regional government authorities Ibd their agencies, Bodies. Kcbcle Adminisb'ations and Associations shall have the duty to cooperate ,.withthe Tax Authority in the enforcement of this Proclamation. 2) (a) No Ministry. Municipality, Department or Office of ptcFcderal Q~Regional Government shall issue or renew any license to any ,~payer, unless the appl~t produces a Certificatefroln the Tax Authority to the effect,
, ,

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that tax due Inrespect of-the preceding year or years have been paid, or where the taxpayer is seeking lice~ for the fIrSt time a taxpayer identification number (TIN) issued by the Tax

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AuthoritX. unless an appeal, is pending, or time for payment is extended by the Tax Authority. (b) If the Tax Authority 'refuses to issue a certificate it shaQ.on demand by the applicantfor the liCense,provide him or it with a written statementof its reasons therefor. (c) Any applicantwho is aggrievedby the reasons stated by the Tax Authority for refusing to issue a certificateor by the revocationof his or its licensemay appeal in writins to the Review

Committee.

'

A~O~t .",. Mh-MI.C

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37. Po.wroftheMinister The Minister may, waive. in whole or in part, the tax levied under this Proclamation for economic.soeial or administrative reasons or for reasons specific~LUftder
Alticre'C(b) , of ' the InCQme Tax Proclamation
2002.'

No. 2861

.,-

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,3.~ Po..- to Issue Directivt:8 The Minister of Revenue may issue directives for the proper implementation of this Proclamation. 39. IllflNJ ' The Salea and Excise Tax Proclamation No. 6111993 (as ,1IIIeDded)shall bO .acindedas &om the day on which ... Procl8mation becomes 'of full foR:e and effect.

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No.2131"December, 2002-Page 2038

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40. Transitory Provisions

All sales tax due prior to the coming-into force of this Proclamation shall be collected in accordance with the Sales and Excise Tax Proclamation.
41. Effective Date

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This Proclamationshallenter into force as of the 31" day of December,2002.

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Done at Addis Ababa, this 31 day of December, 2002.

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GIRMA WOLDE GIORGIS PRESIDENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETmOPIA