Taxpayer rights and complaints in Nepal

To the head of the Inland Revenue Office, the Director General of the Inland Revenue Department, or the Ministry of Finance.

A taxpayer must meet the duties set out in the Act and Rules, chiefly:

• File returns and pay tax by the due dates
• Pay assessed tax on time
• Provide information and documents requested by the administration
• Cooperate with the administration

Section 74(2) of the Income Tax Act 2058 guarantees the following rights:

• To be treated with respect
• To receive information on tax matters in accordance with law
• To an opportunity to present evidence in their defence on tax matters
• To appoint a legal practitioner or auditor for their defence
• To confidentiality of tax matters, except as provided in the Act

You need to follow up on the outcome yourself. You can leave your address, email or phone number when you file the complaint.

Complaints can be made to the grievance officer or head of the relevant office, the Director General of the Inland Revenue Department, or the Secretary of the Ministry of Finance, including through these channels:

• The relevant Inland Revenue Office
• Inland Revenue Department, Lazimpat, Kathmandu
• Ministry of Finance, Singha Durbar, Kathmandu
• The telephone numbers of the department or office
• Websites: www.ird.gov.np and www.mof.gov.np
• Hotline: 01-4415802, 01-4415803, 01-4419719

The Inland Revenue Department and its offices each designate an official to hear complaints directly. You can meet that official in person, or submit a complaint in writing at any time.

If you have not received the reward after the tax has been assessed and recovered, you can complain to the Director General of the Inland Revenue Department or the Ministry of Finance. You can also petition a court that you have not been rewarded as the law requires. The department gives priority to implementing this.

The law sets no fixed time. Generally the reward can be paid once the evaded tax has been recovered on the basis of your information.

You must submit genuine documents that prove the evasion. You can report without giving your name by using a code, but you must first confidentially register that code with the authorised official so that it can be identified as yours.

Up to 20% of the additional tax recovered on the basis of the evidence you provided. Where more than one person is entitled, the reward is shared proportionately.

Providing information, with evidence, that a person has evaded or attempted to evade their tax liability.

The reward is divided proportionately.

A person who provides information with evidence that a taxpayer has evaded, or tried to evade, all or part of their tax liability can be awarded, by decision of the Director General, up to 20% of the tax recovered on that information to the extent established by the evidence they provided.