A person who receives an audit decision or an administrative assessment decision for income tax in Jordan may file an objection with the Objection Authority within a set statutory period from the date the decision is served, and if unsatisfied with the Authority's decision, may then appeal it before the Tax Court of First Instance within a further statutory period.
The Objection Authority and who may object
The Director of the Income and Sales Tax Department forms one or more administrative bodies called the Objection Authority to decide on objections, each composed of three experienced and specialized auditors; the Authority may instead be formed of a single auditor if the disputed tax amount does not exceed five thousand dinars or the disputed net-income loss does not exceed fifty thousand dinars. A taxpayer may object before this Authority against certain audit decisions or against the administrative assessment decision within a period not exceeding thirty days from the date the decision is served.
How the objection proceeds
The Objection Authority invites the objecting taxpayer to a session to consider the objection; the taxpayer has the right to present evidence supporting the grounds of objection, and the Authority may request necessary information and details and request the production of records and documents. The Authority issues a reasoned decision on the objection within ninety days from the date it was filed, and may uphold, amend by increasing or reducing the tax, or cancel the contested decision. The audit or administrative assessment decision becomes final and conclusive if the objection is not filed within the specified period. The Authority may extend this period for up to two years from the date the decision is served on the objector if it is satisfied the objector could not file the objection due to absence outside the Kingdom, illness, or another reasonable cause. The taxpayer must pay the tax, fines, and amounts admitted, otherwise the objection is rejected on formal grounds.
Judicial appeal before the Tax Court of First Instance
After the Objection Authority issues its decision, the Department notifies the objecting taxpayer in writing of the result; if the taxpayer does not agree, an appeal may be filed with the court within thirty days from the date the notice is served. A first-instance court called the Tax Court of First Instance was established for this purpose, with jurisdiction over all lawsuits arising from the application of the Income Tax Law, along with an appellate court called the Tax Court of Appeal. The statement of claim must be filed within a period of thirty days from the day following the date the appealable decision is served.
Conditions for accepting the statement of claim
The statement of claim must include specified particulars such as the name of the court, the parties and their tax numbers, the date the contested notice was served, the amount of tax claimed, and the facts and grounds of the case. The taxpayer must also state in the statement of claim the amount admitted and submit to the court a receipt for its payment, otherwise the case is dismissed.
Legal References
- Income Tax Law No. 34 of 2014 and its amendments — Article 33 (Objection Authority, procedure and deadlines)
- Income Tax Law No. 34 of 2014 and its amendments — Article 42 (Tax Court of First Instance and Tax Court of Appeal)
- Income Tax Law No. 34 of 2014 and its amendments — Article 43 (particulars and deadline of the statement of claim)
For questions about your specific situation, you can ask the Jordan Tax & Legislation Helper on Helpers, or consult a licensed chartered accountant.