The principles of good administrative behaviour in the context of taxation

Abstract

The objective of this thesis is to examine the administrative side of tax law in Malta relating to the Income Tax Act, Value Added Tax Act and Duty on Documents and Transfers Acts. In particular the dissertation will examine the jurisdiction of the Administrative Review Tribunal in reviewing the decisions of the Commissioners for Revenue, as head of the Inland Revenue and the Value Added Tax Departments working under these Acts and the dissertation will examine the review process of the administrative decisions of these administrative bodies. The thesis first examines the working of Administrative Review Tribunal, in particular identify what falls within its jurisdiction and what does not. This discussion will be used to identify what possible remedies may the Administrative Review Tribunal offer and identify the limitations of the remedies the tribunal has. This is discussed in chapter 2. The thesis then discusses the principles of Good Administrative Behaviour that have been introduced into Maltese law through Chapter 490 in 2007 and deals with how these principles are applicable to tax related disputes (Chapter 3). This is followed by a brief discussion of the advantages brought into Maltese law the implementation of the Administrative Review Tribunal system as opposed to the through former system of specialized boards of Appeal. Chapter 4 will deal with the various forms of discretionary power which is enjoys by the Commissioners for Revenue under their respective law, and in particular examines the case law relating to the discretionary power. This chapter also examines the different ways in which the Administrative Review Tribunal (and formers specialized Board of Appeals) deal with the discretionary power of the Tax Commissioners. Once that the limitations of the Administrative Review Tribunal under Chapter 490 to review the administrative behaviour of the Commissioners for Revenue has been identified the thesis then discusses other means for the taxpayer to obtain redress whenever this is possible. This is done by examining the powers of the Ombudsman and the possible redress offered by the Public Administration Act, as discussed in Chapter 5. The final chapter deals with appraisals about recent positive changes that were of benefit to the taxpayer and includes comments and possible recommendations on how the administrative system could provide a fairer and more just system to the taxpayer while ensuring that all citizens adhere to their fiscal obligation.