A Taxpayer Charter is a formal document that outlines the rights, obligations, and expectations of taxpayers and tax authorities. It is designed to foster a relationship of trust and transparency between the government and its citizens, ensuring that taxpayers are treated fairly and that tax authorities uphold certain standards of service and conduct.
Elements of a Taxpayer Charter
- Expectation from Taxpayers:
- be honest and compliant: Taxpayer is expected to honestly disclose full information and fulfil his compliance obligations.
- be informed: Taxpayer is expected to be aware of his compliance obligations under tax law and seek help of department if needed.
- keep accurate records: Taxpayer is expected to keep accurate records required as per law.
- know what the representative does on his behalf: Taxpayer is expected to know what information and submissions are made by his authorised representative.
- respond in time: Taxpayer is expected to make submissions as per tax law in timely manner.
- pay in time: Taxpayer is expected to pay amount due as per law in a timely manner.
- Obligations and Commitments of Income Tax Authority:
- provide fair, courteous, and reasonable treatment: The Department shall provide prompt, courteous, and professional assistance in all dealings with the taxpayer.
- treat taxpayer as honest: The Department shall treat every taxpayer as honest unless there is a reason to believe otherwise.
- provide mechanism for appeal and review: The Department shall provide fair and impartial appeal and review mechanism.
- provide complete and accurate information: The Department shall provide accurate information for fulfilling compliance obligations under the law.
- provide timely decisions: The Department shall take decision in every income tax proceeding within the time prescribed under law.
- collect the correct amount of tax The Department shall collect only the amount due as per the law.
- respect privacy of taxpayer: The Department will follow due process of law and be no more intrusive than necessary in any inquiry, examination, or enforcement action.
- maintain confidentiality: The Department shall not disclose any information provided by taxpayer to the department unless authorized by law.
- hold its authorities accountable: The Department shall hold its authorities accountable for their actions.
- enable representative of choice: The Department shall allow every taxpayer to choose an authorized representative of his choice.
- provide mechanism to lodge complaint: The Department shall provide mechanism for lodging a complaint and prompt disposal thereof.
- provide a fair & just system: The Department shall provide a fair and impartial system and resolve the tax issues in a time-bound manner
- publish service periodically standards and report: The Department shall publish standards for service delivery in a periodic manner.
- reduce cost of compliance: The Department shall duly take into account the cost of compliance when administering tax legislation.
A Taxpayer Charter is an essential tool for modern tax administration. It codifies the relationship between taxpayers and tax authorities, ensuring that it is based on mutual respect, fairness, and transparency. By clearly defining rights and responsibilities, a Taxpayer Charter helps promote compliance, enhance trust, and improve the overall efficiency and effectiveness of the tax system.
