The 2019 rules for settling pending disputes between taxpayers and the Income and Sales Tax Department set out a mechanism for referring pending tax claims to a Settlement and Reconciliation Committee, which raises its recommendations to the Minister of Finance, subject to specific conditions that vary with the nature of the case.
The Settlement and Reconciliation Committee
One or more committees called the Settlement and Reconciliation Committee are formed within the Income and Sales Tax Department to apply these rules, review requests submitted by taxpayers, and recommend accepting reconciliations and settlements of claims. The committee is chaired by a judge appointed by the Judicial Council, with two members: one a senior official of the Department and the other an experienced specialist from the private sector in tax matters, and its recommendations are adopted unanimously.
Who may request referral of a claim to the Committee?
A taxpayer or their agent may request referral of the claim to the Committee after the Objection Authority's decision under the General Sales Tax Law is issued and before it is ratified by the Minister of Finance, and after accepting the request the Committee must review the claim and submit its recommendations to the Minister within a period not exceeding thirty days from the date the request is accepted.
Settlement conditions in cases with a final court judgment
The Committee may recommend to the Minister that settlement and reconciliation be carried out in tax files on which a final court judgment has been issued, provided the court's judgment does not include a conviction for a tax evasion offense, the principal amount of tax or fine in the court's judgment does not exceed (1,000,000) one million dinars, and the settlement includes payment of the principal tax amount and not less than (50%) of the fines. If the claim includes both tax and fines, the waiver may not exceed (50%) of the fines' value; if the claim consists of fines only, not less than (50%) of it must be paid.
Illustrative example
- Suppose a tax file with a final court judgment carries a fine of 10,000 dinars, with no conviction for a tax evasion offense; the settlement would then require paying not less than 5,000 dinars of that fine (50% of it). This is a hypothetical figure for illustration only.
Installment requests and cases pending before the courts
A taxpayer may also submit a request to the Committee to pay amounts due by installments under the Income Tax Law and the General Sales Tax Law, and if the Committee approves the installment plan, it recommends to the Minister proceeding with waiver of amounts and fines under the same provisions. If the case is pending before the competent courts without a final decision, it is referred, along with the Committee's decision and its reasons, to the State Cases Committee or to the Council of Ministers depending on the nature of the request, and the settlement, reconciliation, or installment request is not deemed effective in this case until the lawsuit is withdrawn.
Legal References
- Rules for Settling Pending Cases Between Taxpayers and the Income and Sales Tax Department for the Year 2019 — Article 3 (Settlement and Reconciliation Committee)
- Rules for Settling Pending Cases Between Taxpayers and the Income and Sales Tax Department for the Year 2019 — Article 4 (referring a claim to the Committee)
- Rules for Settling Pending Cases Between Taxpayers and the Income and Sales Tax Department for the Year 2019 — Article 5 (settlement conditions in final court cases)
- Rules for Settling Pending Cases Between Taxpayers and the Income and Sales Tax Department for the Year 2019 — Articles 7 and 8 (installments and cases pending before the courts)
For questions about your specific situation, you can ask the Jordan Tax & Legislation Helper on Helpers, or consult a licensed chartered accountant.