You have received a tax assessment charging your company more than your return showed, the Tax Authority has disallowed expenses you consider legitimate, or a late-payment penalty has been imposed. What can you do? Omani law provides a clear objection route that starts with the Tax Authority and can end in court, but it is governed by short deadlines, and missing them loses the right. This article explains the stages of objecting to a tax assessment in Oman and which court hears tax disputes now that the Court of Investment and Commerce has been established.
What is a tax assessment?
An assessment is the Tax Authority's decision setting the tax due after examining a return. It may accept the return or adjust it, for example by increasing taxable income or disallowing expenses or deductions. It is governed mainly by the Income Tax Law issued by Royal Decree 28/2009, as amended. For the basics, see corporate income tax in Oman.
Stages of a tax dispute
Stage 1: Objection to the Chairman of the Tax Authority
A taxpayer may object to an assessment or any decision of the Tax Authority before its Chairman within 45 days of notification. The objection must state its grounds and be supported by documents, and it is decided within a period set by law, which can be extended.
Stage 2: Appeal to the Tax Committee
If the taxpayer does not accept the Chairman's decision, it may appeal to the Tax Committee within 45 days of notification of that decision.
Stage 3: Tax claim before the courts
The taxpayer may bring a tax claim against the Tax Committee's decision within 45 days of notification. Tax disputes are listed among the main first-instance matters of the Court of Investment and Commerce in its guide, heard by a three-judge circuit, with appeals and then a challenge before the Supreme Court within the set deadlines.
Building a strong objection
- Read the assessment closely: identify each adjustment and its stated reason.
- Go back to the law: rely on the provisions of the law, regulations and decisions supporting your tax treatment.
- Provide documents: contracts, invoices, audited financial statements and evidence that expenses relate to the business.
- Keep to the deadlines: an objection filed after 45 days may be rejected on procedure, however strong it is.
- Combine accounting and legal expertise: tax disputes are technically accounting matters and procedurally legal ones.
VAT
VAT disputes are governed by the VAT law and its executive regulations, which also provide objection and appeal stages with set deadlines. The Tax Authority allows disputes to be filed online through its portal.
Common mistakes
- Ignoring an assessment in the hope of settling later; once deadlines pass, it becomes final.
- A general objection that does not identify items, grounds and documents.
- Not keeping expense records and contracts for long enough.
- Relying only on an accountant at stages that need legal drafting and representation before the Committee and the court.
Frequently asked questions
What is the deadline to object to a tax assessment in Oman?
45 days from notification to object to the Chairman of the Tax Authority, then 45 days to appeal to the Tax Committee, then 45 days to file a claim in court.
Which court hears tax disputes?
According to the Court of Investment and Commerce guide, tax disputes are among the main matters of its first-instance circuits, heard by three judges.
Can the court's judgment be appealed?
Yes, on appeal and then before the Supreme Court within the set deadlines and conditions.
Do I need a lawyer for a tax dispute?
The taxpayer or its adviser can handle the objection stage, but a lawyer is usually needed before the Committee and the court, and may be mandatory in court depending on value, as explained in when you need a lawyer.
Sources: the Income Tax Law issued by Royal Decree 28/2009, as amended, and the Unified Guide to Litigation Procedures before the Court of Investment and Commerce, as at the date of publication. Deadlines may change with legislative amendments, so check them when you receive an assessment.
If you have received an assessment you want to challenge, contact Dr. Abdullah Al Rashdi Office on WhatsApp or +968 92000841, or see our commercial and investment litigation service.