Businesses in Lesotho frequently face amended assessments (“Assessment”) from the Revenue Services Lesotho (“RSL”). When this happens, the law gives taxpayers the right to file an objection — a written challenge to the Assessment.
At first glance, this may seem like a simple step, but in reality, it is the foundation of your entire case. A well-prepared objection can protect your business. A poorly framed one can close the door on key arguments.
The role of an Objection:
If you are dissatisfied with an Assessment, you must file an objection with the Commissioner General within the time limits set by law. This objection must, among other:
- Be in writing,
- Set out all relevant factual and legal grounds on which it is made,
- Provide an address within 5 km of the RSL Head Office (Maseru); and
- Be delivered to the Commissioner General at the address specified in the assessment.
The Commissioner General then issues an objection decision — either allowing or disallowing the objection, whole or in part. This is usually preceded by an internal objection hearing at the RSL.
Why it matters:
If your objection is disallowed, a taxpayer may appeal to the Revenue Appeals Tribunal. However, the Tribunal is, generally, limited to determining the matter on the issues you raised in your objection and the Commissioner General’s objection decision.
This is because the Revenue Appeals Tribunal Rules, 2005 state that the appellant’s statement of grounds of appeal shall be limited to the grounds set out in his or her objection … unless the Tribunal grants leave to add new grounds.
In other words – if a key argument or fact was left out at the objection stage, you may not be able to introduce it later. Or, in order to introduce, you may have to incur additional cost when applying for leave.
This is where the real risk lies. Even relatively small but effective arguments — such as prescription, which is often overlooked — can lower an Assessment if raised at the objection stage.
The Role of the Tribunal:
The Tribunal is an independent body established to hear appeals against the Commissioner General’s decisions. Its procedures are formal, and compliance with timelines and technical requirements is important. While the Tribunal can confirm, reduce, or set aside an assessment, its scope is usually confined to what was argued at objection stage.
Pamela Bubb
