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A Structural Reform in Tax Dispute Resolution: The Revenue Tribunal Act 2025

The Revenue Tribunal Act 2025 (“the Act”) which will soon come into operation on a date to be fixed by Proclamation, marks a significant reform in the legislative framework governing tax dispute resolution in Mauritius. Once proclaimed, it will in effect replace the current Assessment Review Committee (“ARC”) with a newly established, independent Revenue Tribunal.

This reform is more than a mere renaming. It introduces fundamental changes in the structure, procedures and powers governing tax dispute resolution, marking a pivotal development for taxpayers, legal practitioners and stakeholders across the business community. We have highlighted the main changes brought about by the Act:

Establishment of the Revenue Tribunal

The ARC, governed by section 18 of the Mauritius Revenue Authority (“MRA”) Act, operates in panels with limited judicial formality. Under the new Act, the Revenue Tribunal will be established as an independent statutory body with an updated composition and structure. It will be composed of:

  • A Chairperson, who must be a barrister of at least 10 years’ standing;
  • One or more Vice-Chairperson(s), each a barrister with at least 5 years’ standing;
  • Up to 10 additional members with expertise in law, taxation, accountancy, economics or business administration.

To safeguard impartiality, these members are prohibited from having affiliations with the Mauritius Revenue Authority, the Ministry of Finance, local authorities or any political bodies. The Tribunal may sit in one or more divisions depending on the nature of the case and can be flexibly constituted with two or more members, or in some cases with only one member alongside the Chairperson or Vice-Chairperson.

Appeals Process: Streamlined and Codified

Under the current regime, taxpayers are required to lodge written representations with the Clerk of the ARC. Under the new system, a person aggrieved by a determination of the Director General or Registrar-General will be required to lodge an appeal with the Secretary of the Revenue Tribunal within 28 days of the determination. The appeal must also be served on all parties within the same timeframe.

Only grounds listed in the notice of appeal will be considered by the Tribunal and the Tribunal will have discretion to reject late appeals unless the delay is due to illness or other reasonable cause.

Pre-Payment Requirement: Now Capped

Under the existing framework, taxpayers are required to deposit 5% of the disputed tax amount, with no statutory limit. The Act introduces a cap - a taxpayer appealing a determination under specific tax laws (section 131B(2) of the Income Tax Act or Section 39(2) of the VAT Act or or section 122(2) of the Gambling Regulatory Authority Act) must deposit 5% of the amount assessed or MUR 5 million, whichever is lower, when filing an appeal.

Procedural Timelines

Under the MRA Act, the ARC had to give its decision no later than 6 months from the start of the hearing. However, the ARC had the power to extend this time period, and in most cases the ARC did indeed extend this time period. Under the new Act, the Tribunal will be subject to mandatory deadlines:

  • A preliminary hearing must take place within 120 days of filing the appeal; and
  • A final decision must be issued within 90 days after the close of the hearing, unless all parties agree to an extension.

Mediation Now Available by Joint Request

Previously, mediation could only be initiated by the Chairperson. Under the new Act, parties may now jointly request mediation before the appeal is heard. The mediation panel will consist of the Chairperson or a Vice-Chairperson and, where the Chairperson or the Vice-Chairperson so considers appropriate, another member.

If a settlement is reached:

  • It will be final, binding and deemed as a decision of the Tribunal; and
  • It will not serve as a precedent for other cases.

If no agreement is reached within 60 days, the matter will be referred back to the Tribunal for adjudication.

Evidence and Burden of Proof

The Act codifies the burden of proof:

  • It will generally lie on the appellant to prove that tax has been paid or that the determination of the Director-General or Registrar-General is incorrect;
  • However, in certain appeals (under section 90 of the Income Tax Act (Transactions designed to avoid liability to income tax), section 36A of the VAT Act (Anti-avoidance provisions) or section 39 of the Land (Duties and Taxes) Act (Anti-avoidance provisions), the burden will lie on the Director-General or Registrar-General.

Expanded Tribunal Powers and Sanctions

The Act gives the Tribunal the power to:

  • Summon witnesses, compel production of documents and take evidence on oath;
  • Dismiss frivolous or vexatious appeals without a hearing; and
  • Award costs as it considers appropriate.

Non-compliance, including giving false evidence or refusing to testify or interrupting proceedings, will constitute an offence punishable by a fine up to MUR 100,000 and/or imprisonment for a term not exceeding 2 years.

Appeals to the Supreme Court: More Accessible

Currently, appeals to the Supreme court are limited to points of law only and follow a rigid case-stated procedure initiated by the ARC. Under the new Act, aggrieved parties may now appeal on broader grounds, subject to procedural safeguards:

  • A notice of appeal must be filed with the Revenue Tribunal not later than 21 days after the date of the final decision of the Tribunal;
  • The appellant will be required to enter into a recognisance with one or more sureties and deposit a sum deemed sufficient by the Tribunal to cover costs;
  • The appeal must then be lodged with the Registry of the Supreme Court within 14 days of the notice; and
  • Respondents must signal their intention to resist the appeal within 28 days of service of the notice of appeal.

The procedure will mirror that of an appeal from the final decision of a District Courts in civil matters.

Transitional Provisions

The Act contains detailed provisions to ensure continuity:

  • Ongoing ARC matters which have reached hearing stage will be taken over by the Tribunal and shall be continued in accordance with the repealed law. Matters which have not started on the commencement of the Act shall be transferred to the Revenue Tribunal.
  • Existing ARC staff and members will be transferred to the Tribunal on the same terms and conditions.
  • All assets, liabilities and rights of the ARC will be vested in the Tribunal.
  • Pending appeals to the Supreme Court will continue under section 21 of the MRA Act as if that section has not been repealed.

Conclusion

The transition from the ARC to the Revenue Tribunal, once the Act is brought into force, will represent a material shift in the tax dispute resolution process in Mauritius. With its clearly defined institutional structure, codified procedures, and binding timelines, the new Tribunal is expected to bring greater formality, efficiency, and predictability to the handling of revenue-related appeals.

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