Value Added Tax Proclamation No.285/2002

SECTION 5 9"'1/',/1 Registration (k fI/III/D''''''11 "'f..:" 16. Obligatory Registration ?;. :"hlt f°'/.ht.AIH' f'}"'Y: P't. h'}:,.lt.<J>Ct, fO'J.fh 'iw"} tr'i ",I-tLl,o'll.h(}")' :}'hlt .rA.,.(loII"O 1) A person who carries on taxable activity and is not °'l'i:,:w'9° (\IP' hllJ' II:":}" f'''',I.''';.')' f").:}'~1' registered is required to file an application for VAT (\. ".7.'" ""'(,1,1.°'11. MI.')' :}'hlt "ODOD'U111 registration with the Authority if - °'l(lIlAh:': O'J:"I.'II ""11+: (a) at the end of any period of 12 calendar 11) 11t1'1'i:':a>-9° n~ w"..). 'I.IL a>-{J1',rh'im.,w' months the person made, during that period, :"h{J f01J.ht.AfH' "'.n'..)' h'IIC (; OD.r. if. taxable transactions the total value of which II"'. iun m,,9" exceeded 500,000 Birr; or ,,) 1I°'l'i:,:m'9° n ~ mI..')' 'l..IL OD:f.ODl.f IItlU (b) at the beginning of any period of 12 calendar n~ mI..'} ".IL m.{J'1' :"h{J h4.f. fO'J.,rhe; months there are reasonable grounds to W'''IP' :,.),{J fO'J.ht.~fH' "HI',')' h11C f. OD-f. expect that the total value of taxable transac- j'j. 11"', '.If'i~ 11ft" "oP1OU'} fO'J.f{J1'~ tions to be made by the person during that ".tJJ,/l"~ 9"),,),(,,). h,}Y."": period will exceed 500,000 Birr. ~. f'n,Hl'i "J"iO'J. ~D?')' O'J.~{J.)..;. tUlU 1I",e fno-{J 2) The Minister of Finance and Economic Develop- ODtn'} h~ m,e9" "'H'X' ii f"'OD"h"'a>-') f'11"11 ment may by directive increase or decrease the 'U:" °,/ f.: 1.'" ,.-:;." ~ :: threshold provided for under Sub-Article 1. t. (l00D'''''''1 ,r"IH' (\w' .no.{J "')"'"" ;;(u) f-t.ou" 3) A person required to. register shall file an ap- h"'w' 'l..IL h'hnci"'''' .t\" 11fta>-mc fOD(.I.\.1.if .,.') plication for registration no later than the last day of OJf,I}° "'}o.{J "'H''''- ;;(,,) f-I-OD"h"'a>- 'UL .H-tn'i the month after the end of the period in Sub-Article .,..,..»). WC fOD(.I.\.I.7i .,.'} "1}°'''111 D?OD~h;J: (I )(a), or the last day of the month of the period in °7:"1.'11 ""IH':: Sub-Article (1)(b). ~. .n o-lt "')"'"" (?;) f.,'O&"h"'a>- h '},..,.tnl1.,. IfCj 4) Subject to Sub-Article (5), a registered person who f')", f.: P't- h,}:" It:J>(}.a>-') fl:"c'}''''u.: l' m,e9" conducts taxable activity in a branch or division flp' t- tJ~".1- fO'J.fh'ia>-'} f"'OU"111 (\a>- :,.C') shall be registered only in the name of the registered 6"11.':1- w,e9" f P't. tJ~I\"1- 00001'1-11 fftllTa>- person. fllf~'a>- +001l;J1l. {J9" f,lfe;~:: 5) Notwithstanding Sub-Article (4), the Authority #. flt l U "')"''''' '}0- It ,,'}.,. "'. 9. f ". 00" h "'a>- f1.CjC9" may, upon application in writing by a registered ih,~ce (\a>-.,.-,.q"a>- f.,.ooH1fl (\a>- flO'J."'C11ft.}. person operating in corporate fonn, authorise the O1JOD~h;J: ODIJ.'I.'''' f:J.tj(\- q"P'~flJ'} :"C'}6"ll.'::t: registered pers<;>nto register one or more of its w,e9" f P' t,. tJ~",,:t: t- (\-') f;1:" f't Uf-l1 "f fll branches or divisions as separate registered persons p'c'H' f,,:r:a>-: fl'}"I.(' P't-a>- h '}:"{J:J>(}.~,e.,.}' where the Authority is satisfied that the branch or w,e9" 0"7.11-0'''' fl;J- ,,,,,,,"-a>- f"7.;J-m~ hll'''i division maintains an independent accounting sys- f'''ooH1fla>- (\a>- "'}1: m,e9" h",}.(' fll\,e fll'~ tem and can be separately idefitified by the nature :"C,}6"ll.':1- m,e9" f P' C. tJ~""1' fl.,.e; tn~ h '}.\oo of its activities or location. H,11- ODfi:"'.(' y.1o,,~:: . 6) The regisration of a branch or divisioJ' under Sub- i' fl'}o-lt "'}.,.,,.. t ~1J.'1.'-"f"7.L~ooa>- f:"C'}6"l~1o Article (5) is subject to such conditions and m 1Ir f P' t- htt:I\" 1- f.,.e; 111~ 9"111 q fO'J.L9°oa>- restrictions as the Minister of Revenue may deem f11l.~1o "7.t{J.-,.C OD,tfmflJa>- ooootf h,"'" fit. ~m-'-" O-~:J'9'1- he; 11-fl1o ;JC f"7.flJ.flJ9" h{Jh.,., ., 1.' ll\ ;J= a>-II 1~' ii1f.~~Y.~} J..1.t.tI. 't;J6.}o;Jt1"1 4r1'Cc9r flk n ":'J Iiifn ,.9". Federal Negarit Gazeta - No. 33 4thJuly, 2002- Page 1846 . ~. "7c.'TCD-'I"(\CD-01lH\ h1.,.R' (Ii) (IOIPI.:" f(lO(IO 7) In determining whether a person has an obligation to l'1,n ..,1..;r Il\n:" (I01f)'1 I\(IOOJ(\1: register under Sub-Article (1): u) v-I\:" "'Tr-~:" II\TCD- (\~:f nDttf).n.}. 'LtI. (a) the authority may aggregate the value of taxable I1I\P'~tq). h1'&;' IhCjOJ~CD-1 ;t'hll fU?h4t transactions made by one person with the value ~ 0:" ..,iI,.:" /\.1\CD-t) hCjOJ~CD-;J C ~ 1-'t~ (IOC of taxable transations made by the other person II?1:1..., "-:;'I\~:: where both persons are related persons; and 1\) fIl?CjTCD-'I" (\CD-;rhll fU?h4t~IH' ..,-0',,"" 'P;J (b) the value of the person's taxable transactions is fU?m(\~CD-nh1.,.R' H (IOIPI.:" ~CD-:: determined under Article 12. X%. n4C,.cJ>1.~~:"lll\(IO(I01I1i1 17. Voluntary Registration 1\''''1.1.'''/& ~I\:" :rhllf(lO(I01I111.1 ..,1..;r f/\.I\n."t. A person who carried on taxable activity and is not f1",Y.' 1"'6- fU?It)'/.1: (\CD- 11.11ll (tl; TC(\1"" ((\11 required to be registered for VAT, may voluntarily apply h9°ll')' n(101'-) fiJ.cJ>"7c}>l.iI ~Cj h1~"'I\"."t. foDllm')' to the Authority for such registration, if he regularly is 1"'1,. fll?lhCjCD-~CD- 1\,"(10"10- (\~-:;. hlf~ ntt:I\-)',: supplying or rendering at least 75% of his goods and services to registered persons. f9°1'~'1 "7(1O~h;J=CD-1 1\'1I\P'~tq). "7c}>I..n .e-:;'I\~:: X~~. f9°1'1IlY'"'c~')' 18. Registration procedure ;1' (lIlU h'P~ UUIPI.')' I\'NJ;},"7" ~I\'} :J'hll l\uPuP I) A person applying to register for VAT is required to l'1.n f"7."'Cll "7CjTCD-'I" (\CD- "7uu~h:J:OJ") do so in such a f.rm as is established by the f1 0. ~-:;. "7. ~ll:"C 0U?lm tqCD- f h 4t' fJ'I" (10uu t 1 implementation directives issued by the Minister of CD-ll'l' IH'(IOl\h.,.CD- c}>R'"7c}>1.11hI\IH':: Revenue. ~. n1lHl h1.,.R' (t.) f'f'1.~11CD- ~1'."'mn.,. 1ft;' 2) Subject to Sub-Articel (8), when a person carrying :J'hll f"7.n)~n'}1 "'11.e.). fu?'lhC,'tD-') (\OJ. out taxable transactions files an application to be 1\.",u."7t ~I\')' :J'hll I\(IOUU111i1luul\h." ~1'.tf~ registered for VAT, the Authority is required to 11I\P'~tq). h(lO~t)~1 register the person in the VAT register, and to issue a O''''I.1.''7t ~I\')' :J'hll UU111.n h(lO"1n n:\1\ h'l"11111CD- iJl\."t. "f.'I"r: nc!) certificate of registrati( n mentioned in Sub-Article 3 (Wl\ft) .,.c,'.} CD-ll'l' hllU n:J'-:;' Ino-ll h')"'", (E) below within 30 days lIf the registration. ,). uPllm')' 3) The Authority shall issue a VAT registration cer- f"'uPl\h"'CD-1 'f'l"11111 f'l"llhC OJI.'" tificate containing such details as: hI\IH':: (a) the full name and other relevant details of the t. 11I\P'~tq). fU?h-l'1\CD-1 uul.~ fJ'r/ f9"11111 registered person; f9°llhc OJI."''''' .e(\tq~:: (b) the date of issuance of the certificate; u) f-l'uP"10CD-1 (\CD-ou-I\.ll'l" ~c,' /\.1\"-:;'~ll,c.l\'l. (c) the date from which the registration takes effect; 1IC11C'-:;'j and . 1\) f'l"llhc OJI.""I: f-l'(\mIH'1 en: (d) the registered person's taxpayer identification dl) f'l"111'1CD- .,.4tKU? H' fU?"f.9"CIH'1 1>1: number. uu) f,"(I01I10CD-1 (\CD-f :J'h II h4-.e (101\1 ~'I'C: . 4) F 1"£1 .stration takes place on one of the following ~. 9°1'111CD- htlU +'1'1\" tl~:" +Cj."f- CD-ll'l' +1:qv dates, depending on which date comes first: n1.1.(\0>- Oh 1'&;' +1 .ehC,'OJCj~:: (a) in case of obligatory registration, on the first u) UU(/Oll1.n ..,1..:J' c'\.tr1: 1\9"11111 f07uu~h;J: day of the accounting period following the "7c}>1.11 .., 1..:J' hU?"f.'I"Cn."t. wc +'1'1\" 111\tD- month in which the obligation to apply for j f'/. Uf11 'LIL fU!'"f. (/Ot.f .,.1 registration arose; 1\) 9°1/111 0lj:.cJ>1. ~~..,. c'\.1f'}: h(/O~ t):t: 1\9"1"'11 (b) in the case of voluntary registration, on the first "7(/O~h;J: t)+1.(1I]-1' OJC "''1'1\'' Ill\w. f'l Uf.(1 day of the accounting penGd following the 'LIL f(lO"f.(IO'" "'1: month in which the person applied for regis- rh) IH'(I01I10CD- (\CD-f'l"11111 "7(1O~h;J: f9"11111 tration. .,.1 ~1-'ttf1 f,"(IOl.mCD- .,.1: (c) on the date selected by the registered person on ?;. '1I\P'~tq). 1\.,.t.u."7t ~I\'} :J'hll f"'(/Or/10' (\~":J'..) his application for registration. f"7.(/Ol\h-t: 11C11C uul.~~-:;. f"7.UUWIIl-O'} ou'U111 5) The Authority is required to establish and maintain a .f*~"7~:: VAT register containing details of all persons :4' I1I\P'~tq). 1\-I'l.U."7" ~I\'} :J'hll (/O(/01I11111\(H' registered for VAT. 1ft;' ~1C ..,1 f9"11111 "7(/O~h;J: J'1\"'l.n1 (\CD-t-{\- 6) If a person is required to register for VAT and has not n(/O(/OlI1'(1 1\,"(/0111 nCD- (\CD- 11IlU h 1.,. R' 10.ll applied to be registered, the Authority may register (! .. f-I"'1\"0>-1 f'l"11111 (\C,t;,c.tt.'). . uul\h the person on its own initiative and send to the h')"'''' .e-:;'I\~:: registered person the certificate as mentioned in Sub- :;,. l\'fo(.u."7t ~I\') :J'hll f"'(/01I10 (\tD- f",'(1C h4-,['" Articel (2) of this Article. (/01\.f ~'I'<;.') (111,1\'9" f'''l.U.''7'' ~I\')' :J.t)i\ h:Hi 7) A person registered for VAT is required to use his "(1:1.: n:Jotlll "7ll:J'w'tlsP';f. ~Ci hl1l\P'~tq). ;JC taxpayer identification number on all VAT invoices, nu?'11.C;J:':0>- "'Tf.~"':f v-I\' (IOm"'9" .e':'c and on all tax returns and official communications . with the Authority. n:J'~:: 8) When a person applied for voluntary registration :j;. "7Ci:t:CD-'I" (\OJ-. nh1+R' Pi. (IOIPI."" n4t.cJ>r.'h.) under Article 17. the Authority can deny the ap- 1\uu (/011111 c'\.IUUl\h'}: Ci~P'~tq). h'lU 0:J.:f plication for registration if : IH'III.II';''''' 9"h111'-:f 'I'14:CD-1 OJ.f.'c}> 1\.1 r.c.., (a) the person has no fixed place of abode or .e-:;'I\~:: business; or u) h(lO~t)~ f-l'OJ(\~ f(lO':'tl OJ.e9" f1..,f.' P't- (b) the Authority has reasonable grounds to believe h f.' 6-if f /\.1\CD-c'\.1f1: that the person will not keep proper records or t\) h(lO~t):t: OttO htp~ (IOIPI."" -"111.CD-1f'/.Ufl1 will not submit regular and reiiable tax returns, UU1l1i1 1\(10111: 'LtLCD-1mil" ~Cj nhll"'''7''7~ as required under this Proclamation. ()-).:J' f:J'hll "7ll;rm'tl 1\"7c}>l.iI fu".e:f~ lll\~lf)' I1I\P'~tq). hft"7~ 9"h11:" t)1\0>-:: I~' ?!"(I_~I;r.~i'l: t...fu/.'&\ ~:)/.,} :)fL1T) ~'I'C (!W M, '6'1: ""} :(~r.:i!j '}.9". Federal Negarit Gazeta - No. 33 4thJuly, 2002- Page 1847 Ijj' ')",U',ln ill\UUIPI.'U 19. Cancellation of Registration (tm. ;J.t/il fD1.flJt\IFI:m-') "Hlf,'Y'1' 1) A registered person is to apply to have his regis- .f!' f,,'uu"'''lm' (t.,{"~')" 1\,f-l,L},o,/t ~(t.,) ;J.tJiI ff.l.lm- ~ll"11 tration for VAT canceled if he has ceased to make ,} },'});'u.' 1.111\ I\.,{"(IV1\t/,} y~"f'" t\:: texabIe transactions. ~. hll.11 l1"y, (1'}o.iI A'}<f>~' {i f".uul\tH'm. ~'}f.'" 2) Except in situations provided for in Sub-Article (1) ml)</' If';': f,"(Iv/I'''lm' (tm. \1'I'(IV"ll1l1') <V} of this Article, a registered person may apply to have ~(>~')"(:.,rl\m. fY'iI'} o,(IV'} 'l.1I. h'hn'j"'''' 11:"'" his registration for VAT canceled at any time after a 1)1\':" Art- f}.I\:" mI..:" m'iI'I' fCIIJ..rh'jlD.lj:,:m. period of three years of the date of his most recent :J.tlil f{l'l.ht./.\IF':LD' "I'l1y"y.:f. m"""" 'P:J \H)e ?; registration for VAT if the registered person's total (lv,y. Ii. fo,/y,I1t\'I' UUIf""} f"'I.P, ~'}f.ln taxable transactions in the period of 12 months then ')""/I',I)m' ~'}~.u.'I.'III\'} l\uulUf"" y:,f',,/.\:: beginning reasonably are expected to be not more 1\'f-(,!.1,o,/t ~(l.:" :J.tJiI f"'f.I.'lCD' ')"'/1',1) UUlPl.ll than 500,000 Birr. !:- .,. t.? °'/.'1 :,. fCIIJ.:(>:(IVI.m. f",uu".lIllD' (tlD' ;J.tl iI 3) The cencellation of VAT registration takes effect at f°'/.h&./.\IF,:m"} "1'f)y"y:,}'. o'/hC.'lD'} 11~(lvl1')' VI. the time the registered person ceased to make taxable :(>:')"(:' my,')" f,"(lvU'lI1lD' (tlD' "1'I1Y,'y.:,;'} ,(')"*I.m transactions or, if the registered person has "not 11D1.If'Ht-). 'l.ll. 1\.f-l,L),o,/t ~(t.,) :J.t/il ,rf.I. 'lCD' ceased to do so, at the end of the accounting period ')"'1111) ~'}~Y'I.'III\'} 1111.U A'}4'?, '}(}.iI A'}4'~'" ~ during which the person app1ies to the Authority for (IU II' I. :,. 1\111\P-' /.\ lJ).,. IIuu 1\\H' .} 11 f "."N) VI. cancellation of VAT registrati0n in accordance with (lULU.1.i'i :(>:')"(:' Y.lrlj /.\:: Sub-Article (2) of this Article, ij. 1\'f-l,L},o'/t ~(t..) :J.tlil f"'f.l.l ~ll"ll 11"'u.'I." VI. 4) If a person's registration for VAT is canceled, the fl)l\p'/.\lIJ". (lujl1,.} f,"(/Dl1;JQlD"} iI~ ~c.' 1\.1\°1' Au.thority is required to remove the person's name 'IICU(:':;' h'f-l,L},°'/t ~(t.,) ;J.t/il UUl11'I1 ~IPCtlA:: and all other details from the VAT register and the f"'(lv".lI1m. (tm.')" f".(tmlD"} f')"11"ll (tC'bc.h.-r person is required to return the issued certificate of (luuul\iI AI\(t-).:: registration. htt:t\ ilf:iI')' f ;J't/ iI ill\.')' SECTION 6 Calculation of Tax Payable ?( IIA'H': f:J.tlil "(lU'} UU\I&.t\ .rl\l1')' ;"hil 20. Tax Payable for Tax Period (i. (H'(IV"''') my.')" t'(/IJUU'Ul'f1 "Ifo;" 111\11+ (tlD' II°,/lj:':m:')" t''A,n VI. t'D1.h&.l\lD' ;J'hil nA'}<f>~'?~ 1) The amount of tax payable for any accounting period (IUIl'I.')' ;J.tlil I1CIIJ.h&./.\I1'}"Hlf,'} "f, I1CIIJ.h&.I\m- by a person who is registered or is required to register :J.tlil ~lj I1A'}4'~' ?;'{i UUll'I.')' ,"<f>lj'1i f1D1.f.1.1LD' is the difference between the amount of tax charged :J.tlil (Iullh/.\ .rl\lD' /'\f.',.). ~lD':: on taxable transactions in accordance with Article 7 ~. I1A'H'~' n~ f'''''I.''~'} f}').;"sP1' 11°'1;JmCIIJ:':lD' and the amount of tax creditable under Article 21. ')"tJ'}.r.)' uuh&.A fD1:,l)lD' ;J.t/il 11;,.t/il h4.f. 2) In cases described in Article 13, where VAT payable (1-()/.\61>}.f;J.t'lD' exceeds VAT actually indicated by the registered \1'I"'I\~m' fl1l\m 11D1.If'Ht-). VI. 'I.",,'f1 I1A'}<f>~'. fk f'hn4>(tm. f}.).;J' I):JtnUU(1') person, the amount of the excess is treated as VAT f'l.'1'11 'l.1I. (H'h4.~~')' ,,'y~I': (HlU A'}<f>~' '}o.iI due for the accounting period in which the event A'}4'?,: {i n'hn<f>(tlD' f'l.'1.n 'l.1I. hCIIJ.h&.I\m- ;J.t/il referred to in Article 16 occurred and is added to the .'J£: "'P,~(:' f,h&.I\A:: amount of tax payable for the accountir.g period under Sub-Article (1) of this Article. ?;.f!' ;J.tJ iI'} ill\tl'1<,.lj~ iI 21. Tax Credit {i. (HUJ A'H''''' I1t'''' u.).;" 11/.\"'lD(t~ 11i1,"4'C= I) Except as otherwise provided in this Article, the /):.'9):'; CDy.')o Al/.\"1I\"-f~; '1'-f~ "f, f'PI\"} amount of VAT that is creditable is the amount of CDY.~ f D1.lD'1\")' 1\",uuHll1m- (tm- f'}"1.r.: r"t. ;,.t/(}. ftllJ.flJ/.\O.'f' "111f,.'f' f'HI VAT payable (paid) by a registered person in respect ~'}""iI,cj>(t. I'\.IY'): of tax invoices or Customs Declarations issued to the c.'CD~IH"} 1.11. UUIPI.'} nD11.' I. "1 "'<f>e;'1i t'D1.f. ;JC IH- f ftl f,"(/IItI person for: 1.1m- hllU n;":Y' h'''''I.''~'} (a) imports of of goods that take place during the 1nm- (tm- n4>I.f1I\')'f;rhil h.'}(if,illD~~ -'tt/"t. (t.t",) (/DIPI.'} fD1.htt:l\m- lDf,~ fhltl\m- current accounting period under Article 14; and (b) taxable transactions involving the supply of ,"{JJ.D1t ~(t..'f' ;J'hil ~m-:: goods or rendering of services that are con- u) nh,}4>~ !1! O,"(/III\\l'f'lD' f'l.'111 l.tI. sidered to take place during the current or mY.A1C m-il'1' "illl):t:m- /),cj>sP':f'.~c.- preceding accounting period under Article 11, 1\) O"',}4>~ Hi IH'UUI\ h"'lD' f'l. '1,n 'l.ll. ~'} f."'h e;(JJ~ OOl/.,"'m~ ;,.tJiI fD1.flJ/.\IFI:lD' f/).<J>~e; where the goods or services are used or are to be used for the purpose of the registered person's taxable h1A"1/\-""'f "'-"C(l'} fhltl\m- ;J.t/il ~m-:: transcations. I- Oh'.(- f ;J'hta "(/II') m-ta'1' f,"(/IItll0 (tm- 'lhe; (JJ)dJo f/Jft' m~9" "1A"l/\-'} A-fC(l'} m-il'1' ;J'hil 2) Where only a part of the supplies made by a r"thLAO.'f- "l1l~.'f- h~t\-ll;J: flf~ ~ '}f.lf~ In o.iI registered person during a tax period are taxable transactions, the amount of tax creditable under Sub- ",aftA"' (Ii) oolPl.'f- I\ttU f;J.t/l1 tI(/II'} "'<f>e;'1i fO"lJ'.l1aJ- ;J'hta OOl/.,h+l\m- ht),:\'} f,lD(t~-A:: Article (1) for that period is determined as follows: 'IX' iiil:~~y'ij~~ J..Y..IrA ~;M"" ?H.tTJ ~1'C o!.ir (t~?)?;"'') Ii!fjg q.9". Federal Negarit Gazeta - No. 33 4th July. 2002- Page 1848 u) n.,.'I';}' ;1'tJll i\Dtht.~I1.} "HI:e,"" ftfJi\lD-1 (a) in respect of a supply or import received h:"Cfl"" tD~9" tD1.h1C f1l} iJ:J' I1Dt(1Di\h..,.: .whichis directly.allocable to the making of I\h:"Cfl-f; tD~9" tDf.h1C i\1l}lD- iJ:J' f-t-ht.i\lD- taxable transactions, the full amount of tax ;J.tJll uo-I\. nOD'1\- 1''''Cj7i "1"tlf1 ~f.I.;J~:: payable in respect of the supply or import t\) h;J.tJ(}- '1" 1\If '1a>- "111~'} fCPI\a>-1 h:"Cfl')' shall be allowed as a credit; tDf.9° tDf.h1C f11l iJ:J>nOWJ.UUl\h'}:I\h:"Cfl.t: (b) in respect of a supply or import received tD~9° tDf.h'le I\'IIlCD' iJ.4> f"'h~.I\a>- ;J'hll which is directly allocable to the making of ,,'''',,'7i hf.f.I."I9":: exempt transaction. no amount of tax m) ;J.tJll i\Dtht.~fH' "Cj h;J.tJ(}- '1" 1\1f~ payable in respect of the supply or import. "I11~'" 'f 11;Jt. fCP1\a>-1 h :,.C fl.). CD~9" shall be allowed as a credit, or shall be tDf.h1C f1l} iJ:J' I1OWJ.(1Dl\h..,. I\h:"Cfl": tD~9" allowed as a credit; or tDf.h1C i\11la>- iJ.4>f.t'h~.I\lD- ;J.tJll "1Jt'" (c) in respect of a supply or import received Cj'1II 1\cryy.:I. "I 'U.n. fOWJ.h 4.~.~ 11.). f.1.n which is used both for the making of taxable f'1fl.5P'f OWJ.tll'}C nOWJ.ftDflJCD' uPuut..r and exempt transactions, the niles of appor- f.tD(I,,'~:: tionment of the credit shall be determined by .,..,.(rli hf?,f. a directive to be issued by the Minister or I:' "''1'''''1\ ,,'uul\ h.t:.} f'Hl~.1\ ;J.tJ fI I."19°:: Revenue, u) h'1ll"'~: fuu')1f.~ cry~~'lf ".7ihCt1t. .rI\CD' 3) No credit is allowed for VAT: (ltD. tDf.h1e i\ll1f1lD- tDf.9° nh1C lD-fl'I' i\i1'i (a) on a taxable transaction to, or import by, a tD'1lD-"l,n~.'" fht.I\a>-1 ;J.tJfI nOWJ.UUl\h'): person of a passenger vehicle: I) unless the person is in the business of ii. "1 f.'LU f I\"}') ,,..lii1Ct1t.5P1' nuuj'i'l' dealing in, or hiring of, such vehicles, and tD~9° ncryht.f'} f1",f: Fl,. f"'LPcryt. the vehicle was acquired for the purposes of tD~9" ,,..lihetlt.a>-') f'II/CD' I\'LU- 1"'Y: Fl,. "1"ta>-~ tl~If'1 nll"''''C: such business, or 2) unless theperson is engaged in the business ~. UU11f.1f:r:1 I1cry~~l' f1",Yo' "'''IIlC 'If?, f"'LPcryt. CD~9" .t.7ihCt1t.a>-1 f'II/CD' ,,(; of transporting passengers for hire and the t.,4> Yo'f"'(lmCD' l\'lV' ')"IYo' Ft. "')JtCD'A vehicle was acquired and is licensed for that purpose; tt~If'1 nfl"''''c: (b) on a taxable transaction to, or import by. a t\) h h 1 C CD'll'1' f,t'111")' lDf.9" lDf.h 1 C f'l f1"} person of goods or services acquired for the ;J.tJll fDtht.~fF':CD' iJ:J'5P1' "'i h'I~"I"...y.1' purposes of entertainment or providing enter- l\uPl/"'~ lDf.9" l\uP'UCj~ h'I~"I""'} fCPI\' ncry. tainment, unless- 1f1fH. 1.IL: I) the person is in the business of providing ii' ;J'hllh4.~ nuPl/"'~ h1~"1""')' ')"'Yo' Ft. f,t.LPOWJt. tDf.tJO entertainment andthe supply or import a>-fl'I' tD~9" h:"Cfl": relates to the provision of taxable transac- lDf.h1C f1f1a>- iJ:J' f11"1Yo' Ft. "'):"fI tions involvingentertainmentin the or- ,4>().a>- 'I.f.'} ;J.tJl1 i\OWJ.h~.AfFt:a>- dinary course of that business; or fUU1/(i?': Ft.5P"1' fOWJ.lD-A t1AIf'1 2) the person is in the business of providing Illl"''''c: taxable transactions involving transpor- .~. ;J'hfl h4.~ ;J'hll fcry_h~.AfH' f.).t.')fI tation services and the entertainment is ;rc,), h1~"1""'} f1uPllm'} f1"1Yo' r't,. 'If?, provided to passengers as part of the trans- f"'LPOWJt. hlf'1 "(i fuPl/(i~a>- h1A"I""'l portation services; or l\uP11f.1f"1' fDt(l'l' f-).t,.1ll;rc:', h1A 4) For purposesof Sub-Article (3): "I""'} htt~ tt~If'1 I1ll"''''C: (a) "passenger vehicle" means a road vehicle !!. i\1U-fI h1"'~ (E) ht..,o9"; designed or adapted fonhe transport of eight or u) "fuP11f.~ OWJ~~'tf 'f'7ihCtlt. " cryi\'} t ""~ fewer seated persons, including a double cab ht 11;1'1' flf~ uP11f.1f'f1 cry~~l/ fDt1'A vehicle, and ,t'7ihCt1t. fl.tf1: .f.'C11 ;JI1S .ri\:r:CD'1 ".7ihCt1 (b) "entertainment" means the provision of food, t. 5P1' ~bQ,9" t.~:: beverages, tobacco, accommodation, ,,) "UU1/Cj~" OWJI\.} l11'uPt/111 ()a>- fOWJ.hCjlD1 amusement, recreation, or hospitality of any ;J.tJll ~OWJ.ht.~n'} f1"1Yo' Fl,. h1Yo' tJtt:~ If';': kind by a registered person whether directly or n.,.'I';}' CD~9" 111't/CPtfJt. i\OWJ(iTa>-tJO (la>- indirectly to any person in connection with a "''I fDt"'C11 9""111: uPm'l': .}9"l}If: cryl.~,f: taxable activity carried on bythe registered uPf.(I;r tD~9" cryCjTlD-9" ~~'1.} uPfI"'1"1P. person. '1a>-:: S) In cases provided for in Article 13, where VAT ?;. nh1"'~ Ic 111'uPi\h-f;:" u-).;J'5P'f: I1h1Yo' "I'fl~')' incidated in the VAT invoice or Customs De- f;J'hll h..1ii~ll tD~9" f.,..9"",tJ "ttJ'It.fl.f'1 'I~ claration for a transaction exceeds VAT payable OD f't'ODi\h1'lD- ;t-tJll I1IUJ "I11~.} 'I~ i\.ht.~ this transaction, the registered person is allowed a hDt11llD- ;1'tJll 11~(f\ f1'11 "1f.If'1 I111A"'"l credit for the amount of the excess in the accounting f ;J'fa>- f11t/11 ODm1 I1h1"'~' IE f"'ODf\11'#'a>- period in which the event referred to in Article 13 fH.t.ouul1:" f'l. '111 'ut a>-fl'I' i\'f'uPt/1 {la>- (la>- occurred, except that if the supply was made to a "1"t"'''''1f1 ~1.I.;J~:: ~u-1 "1){ h:"Cfl-f; 'IA"'OD person who is not a registered person, no credit is t/1fl (la>- flf'1 "11.1f'1: fH1A61i}. f;t-flD- ;J'hfl allowed unless the excess tax has be,en repaid to the 1\11flD- tt~1'ODi\(I' I1ll1''''C OI/"'Cj'1ll "1"tf.I."I recipIent of the supply h~~.'" f:tJO:: / l'../'.A '1:1/.:t':JII."1 '/:'\'1: I!.i!: M. ?i"j,,/") hitH! '/"; (.;)".:".""111 'HI". Federal :\egant Gazeta - No. 33 4th July, 2002- Page 1849 '/;. \",/'(,1.1,(1'11.~,IV/' :")t(} U/"t, I\Y, II'Pt\U:,' ,V; U:",I\ 6) A person who registers for VAT after the introduc- \,,(1'1.(/U tion of VAT shall be entitled to credit under this 1/'''' I I'll'" IwU(/U'I/',U' U&,:" I)fI.:/, (},l':(}:/' mI..:" (I). (}'I' t\"'F':(D. h'i IH'(/uI/"UU'''' ofl:/' Article in the first accounting period in which the 11.(',/':1-(". I"Cfl(l7:,T 0:"9J',f, (\"lrC:"A 0:"9":;,,; person is registered for VAT paid or payable on (,1.1,9"1:') \"11/..1'1(1). (1),\',9" flJI(,:A \,,(1'/:"1(1)' :")/11 goods (including capital goods) that are on hand on 1l1I.1J >,'i'/'X' (/UI#'I.:" IH'(/uI/"UU:,' "./1. I)fI(I)' the date of registeration, but only to the extent that \,,(/u:(>:(/UI.,f \""/.""'1 ".11, """'i'{i y,Y.I."/fI:"A:: the purchase or import of the goods occurred not ;,> \,,(1)(,1,1, ';"IY: \""'1.'1' (1'/111.:";': I"C1~:', fI(I'I~I:~1:9" more than six months prior to the date of regis- 11(1)('1(1)' >,In':, "~'I'C ~r~~i!! :(!!t~!i IH'.\'.','I"(I)' tration. (/U/I'I.:" \",/,(/ul\'{i "'I.'I'I"C1~:', '#'tn:,,(I'I. \"11", 1)(1)' 7) A beneficiary of the Duty Draw-Back Scheme 1l1I./J' 1"C1~,.,. (IIY,>,"C I) (}',I)(I). 0,<1' "y, UII.IJ under Proclamation No.249/2001: A Proclamation >,';",X' (/U/I'I.'''' \" :,.),(} (I1/,"li",(} 'I',f": 1""1.11 to Establish Export Trade Duty Incentive Scheme, II,/.(/U,,'{i "'1.'1' I"C1~..,. IIU/I'I.:" \,,:,,),(} ,"(/U,,'{i is not entitled to a refund of VAT paid on impQrts (I'I"rr,.,. >,y:,'j-A9":: under that scheme to the extent that the beneficiary claims a credit under this Article for tax on imports. '6' i:. .".1.1) '1,;'','j- 22. Tax Invoices r; . 1111.1' >,'i'/'X' ';O'(} >,'i'/'X' (~~) ~,Ii U) Ut\'" /J'),:" U (}""1'1: 1'1"'(,'.v''1. I) Except as otherwise provided in Sub-Articles (6) IIA ,/"till)', ~,(J,:" :1-), (} \"",(/uI/ '1I1'i :,.),(} \,,(I'I,h&.AU'} "I'IW.:" \"(I'I..fl."/,.l': 1)(1)' and (7) of this Article, a person registered for 0 :" 9J:':'; (I) ,f.9" >, " A "/fI"'y.:,:'; 1'11''1.,('</'0111'1:" (1m. VAT that carries out a taxable transaction is Y,I. (I:~ (/U(}m ,.,. A fI U ,.,. :: fI' f't,..\,O'11. ~,(J, :/, :1-)/ II required to issue a VAT invoice to the person who ,('A",(/uI/'1/1 (1(1). f'/-l,L},I''1. h(J.:'" :")'11 ,l',I.(I:~ receives the goods or services. A person who is (/Ullm'''' >,,(':.f'A9":: not registered for VAT does not have the right to i~. f. /"t.1.I,t''1. ~,(J. :,. :") I (} f.1. (I:~ \"'111.9J'."" (1'/.'1.II 'h: issue a tax invoice. U(I'I,lIJ (I ',(I)' I~,("'I:" fl''I.1I.'J:~: (/'1;' : 1111.11 ""I'fI" 2) A VAT invoice is a document execuled in the \',"(/UflIH;:"'; (/ul.:~'9J"f' fl''1.Y,'" Y,IJ'liA :: form stipulated by the Minister of Revenue and /I) \""'IIUI/',II(I)"; (1(1). h'i f',:fr(D"; OU'fI' 119" containing the following information: (a) full name of the registered person and the ~,'}.';./J'9" h,k'J"~ (/Dml.,f(D' f".t\f lun f"'(/uI/" 11(1).'; (1(1). f';"I,l': (}9" : purchaser, and the registered person's trade t\) f"'IIUI/',/1(1)"} (1(1)' hli f":)'f(D"; (/ut\J' : name, if different from the legal name, "!'I'C (h) taxpayer identification number of the regis- ,It) \",/"t.LV''1. h(J,')' :J-)I(} f9",w,1} o,'(:-':&,h,:" h'; tered person and the purchaser, f'l-f)m/1'''''} 'V; : (/u) f"':}:Wm"; tJ:J> my,tj" f"'(lm(l)"; A"Aolfl"'''' (c) number and date of the VAT registration certificate; (/U m I.,f : (0) name of the goods shipped or services ren- 'I') :1-)/0' f"'l.h&.A/1'''''} oNlY,:" 'P:J : dered; I.) "I'/1Y.,,; \"'/'&.I'IIU/1')' tJ:J> \"h.)I'" y,'" :")1 II t"/'II&. (e) amount of the taxable transaction; 1'1/1:" O.l'''} t'l,.)I"W;" :")10"; (/Um'; : (t) amount of the exise on excisable goods; M :")I(} \"I"I.h&.A/1'''' ""/1Y,'''' I\Y, t'(I'l.&.fI'HD"} (g) sum of the vat due on the given taxable \,,'/-l,L},I''1. h(J,')' :")I(} : ,.,. transaction; i'i) t' '/-l,I.1,u'l1. h(J, :")1 (} f.1. O:~ t' "'om /1'''''; ,"'; : (h) the issue det if the VAT invoice, and ",) \"'/'i.I.I,°'l1. h(J,'''' :")I(} f.I.O:~ "'h:":"Y, "~'I'C : (i) serial number of the VAT invoice. (} h4.f. tJ."'w"} m y,9" A" A °/fl"";'} fII"I.'I'/m, !~. :")1 3) The registered person is required to issue the VAT OW' "',"'w,') 11<1'1./1/1')' my,tj" k,Ao1f\'''/;'} invoice to the purchaser of goods or services upon /10 m 1)0)' '1.11.t"f'l.L},°'11. hlb'''' :")HI f.I.(I:~ (/DIItn'''' the supply or rendering, but not later than 5 days ,('1'11)0)'O,If') : /1°'1li:,:w.tj" u,),:" f.I.(I'f'} "I'IIY,"; after the transaction, h'f'I'Y.f. hA9"(}')' ",Ii')' /11\.l'. °'14>t"'" A.l'."""Atju :: 4) Except when a tax invoice is not required under ii. (}')O'(} A'H''''' (?;) hli t~) l}of'f. ~.,.'W, IIUII'I.'} Sub-Articles (6) and (7), a registered recipient ""n}.'..,; f:"hll f.I.O:~ t'O'/.l'.mf.r/l'} I\Aln who has not received a tax invoice as required /1(}""#,(: (l'}O'(} A')<I''''' ?i (/DO'I.'} f:")lll J'.I.N~ under Sub-Article (1) may request, in writing ,('t\"'omlD' f,"(/UI/'Ill ',:fr : A:"CP"; tH'&,O(/u/l'} within 60 days after the date of the supply, the "") "'ill'" n~~ "") 'lIl. lD-(}1' f.I.(fF} UUlllt'.p registered supplier to provide a tax invoice in Y.,-:;'''A :: }.'.tJ'J'.fcI: ff.I."'lD- f,"(/DII1nlD- A.pt-Il respect of the taxable transaction, and the supplier 1'1<1:lD' nf,lOlD- /lI~ "''i 'lIl. lD'(}1' 1'1"'&.OUUW' must comply within 14 days after receiving the :"h(} t'O'J,h.(,A(}o)' "Nl}.'.')' f.I."':~ f(/u(}m'} o,Yo:" request. "M}o)' :: '5) Where a registered recipient claims to have lost ?;. f,'-(/DI/'IUlD- "11' :,.tJll 1'1O'/,h&,A IH. "l'/l.e~'} the original tax invoice for a taxable transaction, f"'omlD' f:,.tIo. f.I."'~ CPl.i.p:{flll<i-n,} h'}f.l1'~ the registered supplier may provide a copy clearly f,"OOH1nlD-".pt-n. ".p:{" fO'J,A "lA"" 9"Ah'} marked "copy". nO'J.f.'l"l .p:{lD-'} t\.omlD- .l'.-:;'I\A :: .,,,. ;ij":~~f.:f~'ut,l\ ~:Jt.}. .'1,1."14!'I'C c!J! I'll n .,., Iuf71i ,.,.. Federal Negarit Gazeta - No.334thJuly. 2002- Page 1850 ?;. 1110-'" "1.,.X- (~) fi'f."11m-' "1f."'mO.,. Iflfj 6) Subject to Sub-Article (7). in the case of a f,,,ooIl1f1m- flm- f'''QJ.DJ~ ,,1\...,. :1-11'" h4.f. registered person's supply of goods or rendering of "AIf)' 11(sP";f. o";f'C:J:C' '.l)f ():1'sP";f'1t;"1A .,1\. .r'A ";f.') f1D?,.f''''C.'JfH. VI.: 'H'Q;}.DJ~ services at retail to purchasers who are not VAT XI\"" ;1'hll '.lfl~ ?"'}'11 f1htt:.t' f.lfl~ tD~9" I\"lP/..C registered persons, the Minister of Revenue may by tf'i 'H'II.'11. f'#-I."1°7~ "I\..}. ;1'1111'.~fI:~ "'''A "1Jl directive provide that a receipt or simplified fonn of m-l'?" f"I1JJ.I:f. D?~II'h: f)OOOU,?,.f' ILtl.:"Y: VAT invoice may be used instead of a VAT f.:f'''Au inVOIce. :~. I\":"Cf1')' fO?htl.I\tD. 7) The Minister of Revenue may by directive waive a m:""" tp,? h.ne :( fO?f, f)A'I' I1DJ.I'1,H. VI. f"'oo,,.m ()CD'I\1f.1J ~f,.,.,: registered person' s obligation to issue a receipt or f'r~ '1")11'11'n.r6f.1' Y.I.{I:~ foullm": ",IY..;J' c/'/, tax invoice for cash sales if the total consideration "')JlVH) f"I1.sP:f. O?~II')'C nuuou(..r 1L6.'}.t': for the entire supply does not exceed 10 birr. f.':J""A :: r;t. f).,~',.m- III\o?{lf){I'11 ;J'I111 l3. Revene Taxation 1) If a nonresident person who is not registered for ;1' I1h.'}'f-A-,r "'1'(. .rAI,.,I; I\"'(,L),°7/. "11..). ;J'hll ,rA','oull111 {ltD. f)'LIJ VAT in Ethiopia renders services in Ethiopia for a "')c/''''' ')0.11 "')c/''''' (~) I\""MOlD' f:)II~: 1I".')'f'A'J' (D.II'l' ""A"1I\u,), customer described in Sub-Article (2) of this fflm "')f.tf., f"'{lm(D. ""A"1I\u,}, fIILU Article. the rendering of services is taxed accor- "')c/''''' OUlPl.'}' ;J-t,1I f-h6.AI1;J'A :: ding to this Article. ~. I\IlIJ "')c/."" "6.'109" "f.')II~:" fO?III\m- 2) For purposes of this Artick. a customer is any II".'}' f'A'.r CD'II'I' 1\'#-1.1.),°7(. "11..). ;J'hll f,,'ouII',1I person registered in Ethiopia for VAT or any o'n~en'9" flen. CDf.9" IIh.'}'f'A'.r "'1'(. flf., resident legal person. DJ'g:(D.9" fill., flm-'I-}. .rl\en' J':C:f.-')' .,en. :: t, 1110.11 3) Except as provided in Sub-Article (7),. in a case "1"''''' (:~) fH'f.""',m- "".\:\') I,Aln where Sub-Article (1) of this Article applies. IIII,,'+C n".')'f-A'.r "tp~ l\ln {Ien. fO?.c/'c.n ""A"'I\.'}' 11"')"'X- :j; OUlPl.')' 1,;J'hll .,., unless the service is exempt from tax under IIA'" Y.1.1 ':)I1~(D. I1h.'}'f'A',r "'1'(. "Alnen. (1m. Article 8 jf it is provided to an Ethiopian supplier, hD?h6.I\m- 'nll.n "f. ;J.t,(}..) c/")(\ the customer shall withhold the tax from the o'/ilc/'I.')' "I\,H. :: tUM.A fD?:,'Im- :J'hll f°'/.lIJ{I')fH' 11,('0 amount payable to the non-resident. The amount fD?HI'}'C'':J'. ?UhC fL,}' 1IO?,rlDflW)' of tax is determined by a method of calculation to f:HI f.CD{I'iA :: be detennined by Regulations issued by the ~i' f:)I1~:m- I\'h,L)'O?(. "11..). ;J'hll f"'ou,,.m Illn Council of Ministers. "'-I.ern f"".1.1m- ;J'h II .,.nf.": 1\,"I'~f.n .). 4) If the cutomer is registered for VAT, the withheld f'Ut'f1 .,.u. f ;1'1111O?II:J'lDt.r 11D?.c/'c.n,H. CD'}")' tax is payable at the time for filing of the VAT l\11I\, Afl)). "11. 00'.1."1 "",H,:: f"'('L)'o,//, "/'t.')' ;J'I111 I1tt:,.f'f".tl.OOOf1'}- lP., Yo' return for the accounting period in which the "1 f."'t.W.°7/. "11..). ;1'hll '.lfl~ fD?"'mC "c,' f)"1.,.X- ?;;! ')0.11 transaction took place. The payment document for payment of the withheld tax is considered to be "1"''''' fi OOlPl..}. l\,. 1 f)~(J). f'#-I.LbO?(. "11..). ;J'hll .,..,.c,'7i ou'fH. fO?.rIl1~I\')' .,m- :: a VAT invoice, and gives the customer the right to (;. Y.1f1;;:(D. 1\'#-1.1.),°7(. "11.,). :J'I111 .rA,,'oull1f) a VAT credit according to Article 21 Sub-Article f1D?1f1fJ-}. '1.11. .,..,.c,'7i .rY.l1tD'1 :J'hll (1). "'1' /. "AIf.,m- flm- htt:,.f'm-1 f1.<.Oouf1c!.i(lP"t'J) .,.c,'.}. 5) If the customer is not registered for VAT. he is m-ll'I' t'1I1.sP";f. DJ.~II'}'C 'I lDflJ(D' f "6. Y09" required to pay the witheld tax in the manner oooo~,.f' 'H'ool\IJ-I'm- OOlPl'}' 1ft fO?Yo'l"l prescribed by the implementation directives is- "IYo:J. "l\f)"" :: ?;, sued by the Minister of Revenue within 30days of f1h.""f-A',.f' .,cp~ ,.f'AIf., flm- 111l"" ftf., oo""(.,.f' (Df.9" {):1' l\h./..f. tDf. the date of payment to the non-resident. "1C f10?1'JfJ-}. VI. "c,' 6) In the case of the import of property owned by a 1\h./..f. fD?h6.l\m- 11tt:,.f' "'&I.),O?t. ,,1\,)' ;J'hll fDJ.h.<.AO"" fl.tf1 : 'HI/..f. f')f\'H1l":') nonresident for lease, where the lease payments 1I?"9"'I-}. fI.,.f'1~ {).4>m-lDf.9" ou...,t.,.f'm- are subject to VAT under this Article. the lessee lD'. ".,C f)O?1IHJ-}' 1.,1. fh6.l\m- ;t'I111 i''''C,'7i may claim a VAT credit for the tax paid on the "1 Jl,. l "11\"" ILmf.:" f.T"A 1/ 1-U 0D?tf1fJ-}' 1.11. import upon the agreement of the nonresident "'I)t.f. "1'. :J'I111h4.f. fD?"'mC fl.tf1 f1"'fl)f. owner. In this event, the lessee is treated as the 1IO?'.l1m- f1-nl"" D?lIi'''l\tt: l\.,.QJ.0?(. "I\'}- taxpayer and is responsible fot VAT paybale upon :J'I1I1I1tt:,.f'~"4. 1-1ft;Au the subsequent supply of the property. :~. f1h.'}'f-A-,.f'.,cp~ ,.f'AIf.,m- "1A.,tt-+ flQ.1.010-11 7) This Article does not apply to an import of "1"'"" r ooUll"" (Df. "1C OtIJ.1t1-"1A "Itt-.y.";f. "f. fi'fl)l\m-1 :t'1111fh6.l\ "1f.lfi f.U services to the extent that the nonresident supplier ., tt-.y.T "1.,."" of the services pays thp tax imposed on the import f1""'t u "1 A "1- .,.6. 'D? "f.tf1 9" II services under Sub-Article (3). 'IX' ?iiL:q~:Ui 6...Y"t.tI. ~:J/.'} :JW" 'J;'J'£: If);: I'\), Ii:;' 'J"} nWi!! 'HI", Federal Negarit Gazeta - No. 334'1' July, 2002- Page 1851 r;-ii' IImil.A , ~"'/tl~~'''' , {)i\o<J.h'jw'} <I"IIY,:" 24. Transaction by Agent . ?!. ~,'}.~' w kA WtlJ'. (llnw. "CD' {)'}u'i f)wt,~ :,.t'J"'JI 1) A supply of goods or rendering of services by a o:"9J',)'. \,"'/1>L'1I wJ'.'}u ~"A<lM".r:'}" t'°u{)m:" P'(,. person as agent ("proxy") for another p~rson ("prin- 'phljw~ },'HJ.(/", IIwtlt'. t"Hlliw~ <I"'IY..:" If':' cipal") on behalf and on. instruction of that other ,t','hn('.A:: mh.i\",' ;,.tJ{) h~.Y. t'tr~w. wtlJ:'. person is considered as a transaction made by the /J.i\.,:'}" IHUJ ~tp:{.): OU'PL:" i\o<J.ht.i\CD' ;,.),{) ;"I\t, principal. Both Agent principlal shall be held liable y.tflj i\':: , to pay the tax according to the provisions of this !{. mil.i\' i\(I)tl\" \'''mw''} k,A<I,i\":,' ()-I'Oui'\t..,. t'/I.U Proclamation. },'}<I'0' '}lJ.{) ~'}<I)X' (?!) J!:'}:J'I, ".t.I/"'l. hY,If'},}o :: 2) Sub-Article (1) of this Article does not apply to i~' ~'f'/.' 1\A 11"6 i\,I'l-J,},u'l/. ~I'I".,. ;,.),{J f)h,:,'Y'A',f' services rendered by an agent to the principal. (I)'{)'I' I\A,"(Jul/'lfl "CD' ',II'/. flln wh./.\ ~"'/t,;\~:,. 3) Sub-Article ( 1) of this Articledoes not apply to the haN."I. (l)J'.' ~.,"'t'~A',f' i\',fl' t'J:"9)")" "'/I.U },'}<I'X' supply of goods in Ethiopia ~y a resident agent of a 'ilJ.{) ~,'}<I'X' (?!) ,\J:'i:n ".t.'I"'l. ~Y.II"},}" :: non-resident person who is not registered for VAT ?!.i:. A\'. .(':'}:n in Ethiopia. In this case for purposes of VAT the IIII.!J ~,'I' ~(>: .l':',,~n.9J1" I\Y. "'(Ju{)c.r. t't'J.\':A tln'h(" supply is considered as carried out by the agent. {.I."'" ;1"} : \,(\"'hn : \''1-1' mh.i\":)'-'} },"/.\"M":" : 25. Specii.llRules /HIII'Oi'; \''''/.,('.1.''1'} '{i,(J6/.b : ,(J"i\"i\' t'J:"9)'.)'.'} '{i,(J6/,b I },'},I;.IJ''j'' t'(\,(\..:}'. ~:},~,{):"/.9):}"'} ;"h{) t'(/Uht./.\ When the rules in the Proclamation are difficult to apply, "I.l'..;" "'/{)I\:" ~();,::JI. fltl'l.ll"} f):" '1.11. ~~/I.tJ },.},(,. to calculate the tax liability of suppliers of gambling, 11.91,)'. },Ij ~,;"cf1.r.:}'- \"J'l.(Ju.;.(H' hO.'(,.C: n"f).9):}" lottery, and travel agent services, sales on commission, "'/.%{).}c f)<J'l.(I)fI' (/U(/u/.,t' Y.(I)"'iA :: sales of second-hands, and supplies of other industries, )",:A () I)'''' Ihe Minister of Revenue may issue directives governing \' ;,.),,,. },()"'!;,\".C: p'C:I~:', these suppliers or supplies.

Section 7 r;'?;- :Hlt) {)f\II'/{);hn1'lj ()f\(Ju),t.A Administrative procedures f! . }"t'vn,v,. \",,(/ul/"fl "CD' : - u) m,'}.(': \"1/\'11 '1./1. CD'{)'" ;,.),it t'ouht.A ""\,,,:,. 26. Filling of Tax Return and payment of VAT. .t'(\I1'''' fl.lf'},}" '1.l',II"}'}" f)?t,f'}!;"},a;. t"I/Hl '1.11. I) Every registered person is required: . 'I.')I...} i\;")'{) IIi\pJA("~' tI'/{)':"W1' : (a) to file a VAT return with the Authority for each i\) f\}"t"}!;"},~. t"//I'fl '1.11. t"""mCD"} t'°Ul.LI,I.;'j accounting period, whether or not tax is payable ;,,),{) (Ju),&.y ".IL ',r.,fl m'II,r. :,.),,,.'} (/u)'&./.\ : in respect of that period; ~,f\ 11'''' :: (b) to pay the tax for every accounting period by the . f\},.("j,ln,I;. f'l/H) '1./1. t"h,LI,II?/. ~I'I,,} :,.),{) tI,/{);" !~ deadline for filing the VAT return. hIU...,) 'tlLCD' .,,,,,,,,, .f'i\m' wc ""':.f (/uq'I.'1I .f't\(H' 2) The VAT return for every accounting period shall be f(Ju/.I,I.l.lj ""} htl?i\4. flt,,). ~CD':: filed no later than the last day of the calendar month i> m,'}<I'X' ))~ '}lJ.{) ~'}<I'X' (!O ",h" ~'}r."'r.~"',m' following the accounting period. t''j'''I/',I)(I)' "'&.XII'l.~'''' (I),{J. :'1.1\ fo<J.,p(,. flll'l.lI"}I1'''' 3) In cases where a registration takes place with '1.//. f,"(JUI/"fl(l)' "CD' '}",,,,,'Im' h"'l.Xlifl:" 'lI1. retoractive effect under Article 18, Sub-Article ~,'} (),r. :,.), () i\ tI'l.ht.A IFI:CD' .."fly,.r:.}'. :,.),,,.'} (4)(c), the registered person is required to pay VAT f(/l')'&.A "IY,,:" .f'i\(H' ""I"} : t':")'{) ~,"Ii~{) "'&.XII'I. \,1I'l.If'} f).}'} p'c'H. uu,Pt.:" fl"'lJ~'I.'" for taxable transactions taking place since the f;")'{) '}(i'{i Y.t."'.\':f\;"A :: hlLtJ,}u n'h,Lt."?/. h/l.tJ coming into effectt of the registration and is entitled :JC \",..t'.f/l' ..,.fly,.r'i', t'",(/ul/',lIm. "CD' f)(/u:c>:ou/"f' to a VAT credit according to credit procedures for IpJ'lJ,.,'Cflm. t"{i.f'6I.b 1 11. o<J{):J'w,,=.f' I\Y. (/U:J't"} registered persons. In addition, the corresponding f"'.'j'C/Ff:w. ".lr'} : "NIy"y,:,:t"{i.f'61h 1I?{):hlJ'I:,f'co' transactions are tobe retlected on the first return filed f)1I'.J'(JUt\)/'I'{I)' cm: ?t.}r.".tl~)',. Y..""m('.A :: YIU bythe registered person and are considered as taking f)1I7.11"iIH' 'I.IL t'".aull"l)m. "CD' t"ii.f6Lb "~no"'{):J' place during the month to which the return relates. In llI":J'9J;,: I\Y. i\.,.aui\h";'} <I"l)y,.r:.}'. t'.t-L.Lt.II?/. ~.fI.')' this event the registered person is entitled to issue ;,.),{) r.I.";~ tI'lU.'J:~:'} ,.':j'1\1:\ :: VAT invoices for the .transactions shown on the ii. W,I). t'J:"9)i'. I\,f,"'l.LI.O'//. ?tfl.')' :,.tJ{) t'O'/."I)"l)m. return. llIl.tJ ~'PJJ.:. ?t(i I)n.,}t"A'.f t'.,.'}".;.), ,'h'" t'.,.?".;.)! 4) VAT on taxable imports is collected by the Ethiopian "'1.'1' f\(/Um"'} (H'III..'Jco, P'C~'} au~'I.'} I).,.'}o';.h Customs Authority in accordance with this l)i\rAaJ'} ~w. :: Proclamation and the customs legislation of Ethiopia () rt/;. :")1 ",ouI\'{i {)i\""! f:I.'" under the procedure contemplated for customs duty. 27. VATRefund ?!' \'lllJ .~'}"'X' i\.tt":}'. Y:'},'J'I.9'':j, ?t'}r.'hnl)": InCD' 1) Subject to this Article, if at least 25 percent of the \""(/"1/',1) "CO, I)~'H~' t''I.".1) 'lIL (I)n')"'X' ~i,'}O.{J ~'}<I'X' (~) (au) tH'aui'\tH'CD' I){)"''''C) t.h'iCD~CD' value of a registered person's taxable transactions for :Jot, () t'1I'1.ht.AIH' ",.I)Y...} tp:J CD'{)1' n..r'} () ?!?; the accounting period (other than under Article 7 TC"'}')' I)II.{~ f""{)h~.,r Ah :,.tJ{J fO'/.h~.AI)-)' Sub-article (2)(d) is taxed at a zerO rate, the tHf~ f.,.aul/',I)co' "CD' IHIA;i6J, t"H'~.i\lD"} ".tJ{J Authority shall refund the amount of VAT applied as ho<J.f"J'. t'''H': 1I'1{)t.~ .n: 1)°'1f.f11 'rJ'<l:w-1 a credit in excess of the amount of VATcharged for qcJ'LI) I)ll-i\.} wC 'UL CD.{)1' t'''N)t: n{)'H1.W- the accounting period within a period of twomonths I)i\P'AfIJ'} IHlU t''A.1) 'tll. t\.ht.A hO'/.11)m' :"h{) after the registered person files an application for I)I\J:'. .t"H'~i\w-1'i ?t'}-'toui\{J f'hnf.,.w-'} :J'h{) refund, accompanied by documentary proof of oU(/IJi\fl ~i\(H':: payment of the excess amounts. '}.1J". Federal Negarit Gazeta - No. 33 4LhJuly. 2002- Page 1852 "~' fii1'.~~~:B{ J..1ut.lI. ~;J~'1' .~'LIfJ ~'1'C ~jr I'Ik ?t1"") Iii~~~ 2) Subject to this Article, in the case Qfother ~. ftU' h1.,.'" f\.ft.."f 1:1;J1.sP"f h1f.'l-Il1flck rnlD- f\.ft.."f f",00"10- (1sP"f1 W'"l.oofth'''' flh1'(' f'l",n registered persons. the amount of VAT applied as a credit in excess of the amount of VAT charged for "LILh.h4C.A h"7.11}(1)-;J-hia flit" 'f''''I;'1i h 1JL'.I."J the accounting period is to be carried forward to the f'l-Il1f"'lD- ;J-hia f\"'lI)f':r: ~(h9"ia"") f'l".n 1.ft.SJJ"fh 1JL,,.It"t;: rr'i : flh HLt' 1.tLSJJ"fh"7.'.I.'" next five accounting periods <!nd credited htt:1 It" 'f''''I;'1i "f.I.;JA :: "U fh9"ia"" OJC1.ft. against payments for these periods. and any unused excess remaining after the end of this five-month h'I-II1I;''''''' fl:\It .,.& ,£""1 0. tiC f.,.ootl1fllD- (1lD- 1l-fIAftJ. f.,.hLf\lD-1 :J'hia h"7.1"" f(1~1: "7ial.i{ period shall be refunded by the Authority within a ;J C fl"7,t' J'1' period of two months after the registered person '1' 1 <I:lD-1 I}'" I. fl fl v-f\"" OJC 1. ft. lD- ia '1' IMP'AlI)). 'l"fl'1 'f,oolt1i If.C;JA:: files an application for refund. accompanied by 11f\P'AlI)). f\.f'OOtl1fllD- (1lD- 'f'UUlt1i f"".1.1OJ' documentary proof of payment of the excess i:' amounts. 'l",n f"'''''''' uu(f).') f1.f.Cial}-)' h.f'10.lD- n"~ .). fl"7r.':':lD'9" 'l./L 3) In all cases where an amount refunded to a person is f.f'OJ(1'.OJ' ,£""1 h 1JLoof\iaf\ f\.m.f..}> .f.-:;'''A I: established by the Authority to have been made erroneously, the Authority may demand the return !!, f11t1.nr.' h.i'li"7. A"7')' "7.t""}';' f\",uu"7i '.".n of such amount. f"7.lD-f\(O' 11t1'fl lULU hCP~ OOIPI.')' h"'(1fl(1n(O. 4) The Minister of Finance and Economic Develop- ;"hia It.f. 'f'''''t' f"7.1111}-)'11");;" hr.' IHlU '}.f.',.} ment shall determine the manner in which and the f"7.J'tllD-1 f11tHl oom'} .f.OJiar.'A :: (;, 11f\P'AlI)). n10'''' (;;) OJ.f.9" (!{) UUIPI.'} amount of the tax collections that will he retained h1"'~ for VAT refunds. f.,.uult'li 'r.(,<J: .('.,.l.nlD- (1lD-f\.h~.A h"7.11I(1)' n"f, 5) Where the Authority is satisfied that a person who fh~.f\ uu(f).'} f1.,('1.;J"J'1' I made an application for refund under Suh-Article u) f\.h~.A h"7.111lD- n"~ f"'h~.f\(I)"} f'nll'l1 (l) or (2) has overpaid tax, the Authority shall: uum'} nuu1.UU&,(' IHlU hCP:~ I n'H/°.;.h (a) first apply the amount of the excess in reduc- hCP~ : n',o. "J'I1C hCP:e.: mf,9° nhJI'''~'II tion of any tax, levy, ;nterest, or penalty ;"hia hCP~ UUIPI.'} f.,.uut",fllD- (1(0. f\.h4:A payahle hy the person under this f\"7.1'llD' "7r.':':lD-9° ;"hia l"'I.'r I mf\.~: Proclamation. the Cutoms Proclamation, the OJ.f.9° UU"'65j,h1JLlD-A .rf.e:;JA I: Income Tax Proclamation, or the Sales and f\) tUlU n".f. IH.uuf\t\'f'lD- UUIPI.')' tH"I'I(I Excise Tax Proclamation; and fl:\It ,,'uu"1i f\.f.I."J f"7:,'I(I)''''1. 'f}II.n h.ne: I: (b) then repay any amount remaining to the ~ ,('It~(1 h(f~ f\",uutl'lIllD' (1lD' ~UUf\"'f\:"A person if the amount to he refunded is more foI.ootl1fllD' (1lD- fl"}0'''' h'}"''''' ((;) UUIPI.')' 'k than 50 hirr. .,.uu"'1i f\.'.I."Jf\.). (,"7.111lD- '''II.n ,('f\(O' UUln. 6) If a registered person is entitled to a refund under 'f' I. ,'1"J(1\ fl1d.'" h1"'~ (fi) hr.' (~) IH'UUf\tH'(I)' Sub-Article (5) and the Authority is satisfied that .tlL IMP'AlI)). "'&lD-1 1'}fHI .rAUUf\(I tun the person has overpaid tax, then if the Authority .,.uu" if. hiah""l.h~.A ,('I.ia : '1f\~.lD- ,;,,11 '}(/U.) does not pay the refund hy the date specified in fl1"'.t': WH\-:;' P'I.. ".t', nCPf\(I)' hCt:"'~:lD' f°"/,,'.I.,{' Sub-Article (1) or (2), whichever is applicable, the tDf\.(' ".f. ?!(; TC(I'}o)' :"hl\",H' f\",uull1I1m. (1(1). Authority shall pay the person entitled to the h'}JLh~.f\lD' .f.f.I.;JA I: refud, interest set at 25% (twenty five percent) r;'~I; , f°"/""".';f.C .,.8 &?'c.). (,"7.}>I..n =.,,,&,~.). over and above the' highest commercial lending ;i. ;"hf1-1 n')'hhA (,"7ia"') : nOJ.}>": fUU))&.A 'hli interest rate that prevailed during the preceding ,H'(lmlD' ('1.IL 1'.'fl lD-ia'1'f;J')}'" "7ia;"m4:Y(I).') quarter. f\'lf\P'AlI)). "7.}>I.,n 'UlU hCP~ 'H'f. ~1"(I}' 28. Responsibility for Administration and Reporting UUIPI.')' f",uutl'''IlD- (1lD' =..,,&,~,} (I,IY') : 1) The responsibility fur the correct calculation and f,,'{,L},o"/& 'h(}"} :"hf1- "(111(1." I\h.')'~'*'.(' .). timely payment of VAT and presentation or' a ".9°.;.h 'I f\P' A flJ') It.,,,&, ~ foI'(lfIl 11000,Y')11'} return to the Authority hy the prescribed dealine 'tlL n',.9°.;.h "cP~: UUIl-'I.'} fO"/.uul.. f,lfliA :: rests on the tuxapayer or other person in accord:mce ~. I1U.U "cP~: 'hli n"'9°';.)' ft.'" IH'Y. ~"'llD' (IUIl-'t..), with this Proclamation, and in cases where the f:"hf1- """".~f.e 'h')f. h"Jl}.m,,: f&u,{'ul..A ,,',e collection of VAT is In the competence of the (I)'ia-r "fl. 11I\F'AflJ1 (Of,9" f',:9°.;.h l11\p'An)'} Ethiopian Customs Authurity, in accordance \\lith :.,,,&,~,} ~lfliA I: the customs legislation of Ethiopia. ~:"hf1- "m",)') 2) The tax is administered hy the Authority <lnuby the r;'~' ;;. f",.,le hll'l n.(I)' I}I\/'" An)') "An.') huuI.UI't. Customs Authority within their respective com- petencies, in accordance with this Proclamation 11:\1\ f"'(IUtI'III(I}' (1lD- f\.h4:A f""l.1I1(1}") :1-)1'" UU(f)'1 fY.I.(1'}o)' 'h'}Y,(f', and with the custom) legislation of Ethiopia. ""')(1 Y"':"OJ'" '1'l.L10"/1. (';l'hia lP.-Uf); ',(lflJA I: Irl;'9° rllU 29. Assessment of Tax ,}f,~'I:') lD-'''); f\.(1-r f""l.-:;'f\lD- I 1) If, ,after review by the Authority, it appears that a u) IH'I.. &',f.A "f\" 'H'UUl\h.,.(I). I}.).;,. 'lAin person has understated his tax obligation. the 11""""'C ""JI}.n .rl\lD- f'l"11 '}uu:,.:,. 1./L h'hnlj'" (I}.",'1': Authority shall issue an additional assessment:- .,.,}O).1.If.1.9"C: III\"} "9"",.} (a) except as provided in (b), within 5 years after (0 f,tJO the end of the acco~nting period concerned; f\) :"hf1-') hInt' f"7"':"OJ~ "'''JIIC 00"/6J.loncne (b) in the case of fraud or gross or willful OJ~tJOnhl}.t': :':A"'~~'} ",&,.",'qu h(f~ 111\.1\"-:;' negligence, notwithstanding any limitation in ,n'I--:;' YI\ f1.IL 1Y.11 ""mn.}> 0"7r.':':lD-9° 1.IL any other law, at any time. .f.(fliA II ',~. ;ijr,~I;r.:ft ~Yu(,'&\ ~:J(.'}' ;JILn, ~'1'C c!;!: r'1~?)~.,.', nin~ "9", Federal Negarit Gazeta - No. 33 4111July, 2002- Page 1853 t{, 'I/\P'AIlJ). n10.n h1+1t (?i) ODIP(.:" 'hl,1."7~ 2) If the Authority makes an additional assessment f:"hn en",,), f{}m ~lj f:"hn en"'/). "7n:"mct,f under sub-Article (1) and within 30 days of the f1.(.{}en. (}en.o'/n:"enct,fen' n1.(.{}en. ne!)"") (D.n1' notice and demand, the person assesseddoes not pay ~')~.hc,:A f'hnf+en'1 ,"Ul."7/. :"hn ,fAhlC." (Df..'}o nen'''/).CD- "f. :"t.:" tl en' nh')<I'~' ijt the additional assessment or appeal the assessment uu,p(.,). " as provided under article 43. the person is in default. f'''''I~ ,f".,'(.n ~1'.(f~ '1'4."'~: ~(D. :: htt:A n'}o'»). Section 8 f :"hn h{}'){}'11 hlC. 'O,}O ColJection Enforcement ,!.i. f""nt: hn',n. '1/\p'Ann p'An)'),; "'''''1L: 30. Powers And Duties of Tax Administration ;!. f,ln h'I'~: ~I; 1111.11h'P~: UUu,(.,}. fo'/.mm' 1:)(I"f") lip'". "f. f°'/'PA ~I; f"7nlC.~'}O :'J/'&,~,}, 1) The implementation and enforcement of this f"NIt: hlt'ln,CD' '1/\rAn)') f,I"';A :: Proclamation and of Regulations issued"hereunder ~. fJt,?'g:CD''}u "," In'" (D.n'I' "".,.".). fln.!:'):y,,?,',f. shall be the duty of the Authority. ns.;.'}u : f"NIL: hn'u1.cD' '1/\I"An)') n°,/I;:,:en.'}u 2) Notwithstanding anything to the conttary in any ',.,1. 1I:,..,n h4.f. N'(.n. O,/';:':(D.'}'}o uu",,,6"1.?,',f. : other law, the. Authority shall be empowered to ''''~JI.:}'''; f'UHI uu'U'u1"f' "°'/(.;1"1' : 0) ,},:J'p' rA,'n f"'{}"':':(D. ".<¥>n,nIt.9J:f.') 101. investigate any statements, records and books of ".uII".lIlcD' {}ID'f'}",!: mf,'}o f(/D',f IP". 11:" account submitted by any person at any time by: IIUII"), fUllhlC.,fl; fUII"'II,f (}~JI:'f") : f'lI...,1 (a) sending duly accredited inspectors to check the UU","h"1.9J:f.') : ~'; f'L",n uu'U'u1"f.') ""'1110 statements, records and books of account, or ')11(:: "')"',r: f'HI"':': /J,,"9",f.') mf.'}" ",,,,:,}'. any vouchers, stocks or other material items at /J,,"9",}'. "allaUL:aUL: : the person's place of business or practice; t\) :"hfl h".V.'} mf,,}u f'L",n aU'U'Ifl:}"'} ~I,' (b) requiring the person or any employee who has (}~JI:'}"') mf,'}u uu(.~'} /\"'/"n',}. f"(,f'''(D''} mf,'Ju ~~ltlJ". faumll:" :~,,&,~,}. f-I'{}mm.'} access to or custody of any information, "'/'}~:ID"}'}u f:J'hn h4.V.') ,""'fI'~ nhtlu:,; records or books of account to produce the f""nt: hn"lI. alll"~,f n.'}'fr". {}'H.:f. ~I; same and to attend during normal office hours X. n,,}' "",:~,r. /\D7,"'t:n'/\,}' '/\',.,v,V. h""I,n at any reasonable convenient tax office and ,f":':(I). '1',fct:9"'}" aUAn ~'M.{}'I"; f"''1'" answer any questions relating thereto; ''''')'J'' (J',JI:,f. ~')};..fcI't:'n t\f'',r:(.,'' : (C) requiring any person including a municipality, ,,,) "'u:)~ II.'}' : J':t::~:,}. : f".f8'M "'*'J" "',r,'}u ,,?'g:(I).')'}u body, financial institution, department or flC..J'..".A all')"'p':,' "',r,.,u fhAA au P' /.,f IV,. ,.Ll.'J"(~'"',;:,:",''J'' (liD' agency of Federal or Regional Government to n":"hn h".f. f"1..f(l),c"(D") aul.:~ "","u disclose particulars of any information or tran- f 1"". ~')""n.."c'I. ~')};:'AX' ""'11.:1."': sactions; f, :}'."A:: 31. Seizure of Property to ColJect Tax t!;;i' :"hn /\tlU{},n{},n'NI-}' fI"au,f'U 1) Subject to Sub-Article (4), if any person liable to pay ;!. fJ'}lJ.n h')c"X' (,!) f"',r.~"'ICD' ~')1.'hnn." If'j' o,/t;:':(D.'}u nll.11 h'P:~: f-I.nJ en. :"hn f"1.&." any tax imposed by this Proclamation is in default "III-}. {}(D. IIh')<I'X' r;-!j ')o.n " h')<I'X' (~) "'f,'}O Article 29, Sub-Article (2) or Article 43. Sub-Article IIh'}tf'X' ~;e ')O.n h'}tf'X' (~) 11"'1. ~"'ICD' au,,.,I.'''' (2), it shall be lawful for the Authority to collect such 'I'''.",;;: 1I"j' f".'n' ~')1.ln f:"h{}' '1"I"At'n tax (and such further amount as shall be sufficient to fll.ln :"hn h4.,r, INI-}' nau,f'U ""1.&.""111-}. cover the expenses of the seizure) by seizing any :")JfI ~I,' '}ofll.":') "'III,f'" ""'f.I.'''''' 'hW',//, property belonging to such person. ",CJ.1."tIUli&:} ~'}.';.(D'A ""1,r:I."',),:)"~ I"At'n 2) For purposes of this Section, the term "seizure" ','j'I.'1' A :: ~, )IC,:A h&.'O'/" "uu,f'U" n"1';:':(D.'J" t/l"}',1.: includes seizure by any means, as well as collection "".11 t/l',f''''): ~'M."',}o f-I.t.1,1.°1/. ~c'I.,}.:"hn f"'/.&." from a person who owes money or property to the "III-}. {}(D.frr~ 'J'}u'n m,,'}o '},nl.'''' n~:{. h"1:':~ person liable for V AT. Except as provided in Sub- "(D' :'.),n hu{},n{},n') ,.t.Ll,'/"".A :: (1')O.fI ,,}<I'X' Articles (3) and (6), a seizure shall extend only to O~) ~I; (~) n"'~"l.en' uu"'I.,}. tlAln llfI,""'t: property possessed and obligations existing at the tlU,f'U fD7.:': (D. ftlll,fll' '}'/JI"U IH'{}mll')' 'I.II. " ~t; ftill ,fII' ,"""It: time the seizure is made. The Authority may reque5t n",':" I"t: f"'/:';~ ')'111.'''' 1I"1.h';m'} II'}' 'I.II. WH. ,f" "',~..:"'} (H.t/u"h,,' a police officer to be present during the seizure. 'II:': ~lD' :: f :")I{}' '1/\1" Afln f :"hn h4.V.'} INI-}' Where the Autllority seizes any p.roperty as provided II"'.','UII'''' '1.11. f?t\.n ".".'Po,}. h'1A ~\')~:,:'i hereinabove. it shall have the right to sell the seized ".mf,'}' f,"}""A :: '1/\p'At'J". hIli' n"f, (H'uu/\ goods at public auction or in any other manner tH"D' UU"'(.')' (J,n,,:') h,fllll-}. c"') h')n,Y. approved by the Authority not less than 10 days after h"'/..f.mL: t(,: ",,;,.,. '1./1. 11:\" n,h"<~: m,,'}u the seizure. except that when the goods seized are lI'I"I"AfI'). (H'&.<I'f. n"'t;:':CD'''u "''' "'0 perishable, the Authority can sell the goods after any f,flleD") 'HII.'} au1i'I' Y::;'''A :: If';'''U 'HII.": f"1.fI,,'li tun f'HII.":') 'WC', h"l,}u.}. m.n'f reasonable period having regard to the nature of the fl°'/n', 'I'} ""If1. t/lln".. flO'/.:"fen. ".IL ". 1i(11(D' goods. y:,}'." A :: 1K' {i~'.~~f.:;~ ~1..t.~ ~:Jt ;Jfl.1fJ""'C t!Jr (\1 ~~ .,., Iifj~ ,.9"'. Federal Negarit Gazeta - No. 33 4thJuly, 2002~ Page 1854 e. o?Cj:(-m-9"f"'," -H1~.}-/\ODI~ 9"h"}l.}- fll'~m-"} 3) Whenever any property on which seizure had been f;l'hl\ bJS /\ODif4t"}0-1: ltf,lI'"} \ f.,.l. ""}1.II'~ : made is not sufficient to satisfy the claim for which f ;J-h f1/\P' A tIJ"} h;J-h 1\ h4- \!. I\f, fOl/.4t/\1m- seizure is made, the Authority may, thereafter and f;l'hl\ bJS "Cj htUJ ;JC f""'~ A\!. A\!. a)lJ"',~'f as may be necessary, proceed to seize other -,'hii:/\m- "llhOl/.mCj"'ch 1:l.1\ f ;J-hl\ bJSm- fOl/.L/\ property liable to seizure of the person against ..,n.}-"} (tm- i\.h-'f lHH''f (ID.I" f,'fl\A :1 whom the claim exists until the amount due from ODIPl..}- such person, together with all expenses, is fully 9.' hlltJ nl\f. 0'0-1\ ,,"}.,.'" (li) 0"'1.~11m- paid. f1A.,.hL/\ f;J-hl\ bJS 9"h"}l.}- "}-o~.}- OD'" fOl/.;J=/\m- f..,-oC "1\10.m- f1/\P'AtIJ"} u-01:"} 4) Seizure may be made under Sub-Article (1) on foP 11. ult-o ,,"}JSJ\m- ,,1\+1.'tp' /\;J-tJ 1\ h~~ property of any person in default with respect to any unpaid tax only after the Authority has notified n"'th-ii: tal\;I'm+m- O~I\ f,IfCjA :: Ollt} ~,f.~.}. fO?,(tmm- OIJI\;J-m-l:1 U-01: hoP'~ he!) +-} Ot."', such person in writing of the intention to make such seizure. The notice shall be delivered not less /\;I'hl\ h~" fl.f,C(tm- f.1f1A :1 than thirty (30) days hefore the day of the seizure. ?;. f ;J-h f1/\P' A tIJ"} f :J. tJ ft-"} "c'1f1ft-0 fOlf.1f, 'i:" 4: 5) If the Authority makes a finding that the collection lJo),;I' oP'f~,) fi'l.JS ",)f,"'~ (1')0,1\ ,,-}+'" (?;) of the tax is in jeopardy, demand for immediate f-"oP/\h-,.m- fc!) +') f'Lll. 1f,-0 '/oS n')o,1\ ,,-}+~. payment of such tax may be made hy the Authority (~) f-"oo/\h-,'m- fe!) +') f'Llt 1f.-n taf.mn:" :J.tJft- and, on failure or refusal to pay the tax, collection m)t1 m-~ ,,'»)t hLA /\cryf.' ~.., '1'11: h+ ~ (}Ii":J'tJ it thereof hy seizure shall he lawful without regard to h4-\!. /\ODtJ4tA L:J>f,"i'/ taAIf~ ')-n~-}'-) noo,'" the 30-day period provided in Sub-Article (1) and :J-hl\ foPc'1-nc'10'"t.'09" :h;Jce f.1fr.A :1 the 30-day provided in Sub-Article (4). 1;' O?r.:t:m-f" ')-n~')' fi'll1 mf.f" h'»)t11' f:J.c'1t1 6) If a seizure has been made or is ahout to be made on h"'~ 1\/\lllJo ')-n~-)' O?I\~jf fDl/.If,) mf.9" OU"'/\61iJ. any property, any person having custody or control fIll (t~1.' mf.f" OU111-(1 nh:( fOlf.1:~ })f.9" of any books or records containing evidence or nch1"r~ P'C 1/\ OIJCj:,:m-9"c'1m'n:J'hft- f1/\P'AnJ') statements relating to the property subject to 1'11:c'1."'C-(1/\"" c'1~~-}m,f.9" OU1110'-}/\o7ll~~'~')- seizure shall, on demand of the Authority, exhihit O?~~-n ,,/\.H' :1 such books or records to the Authority. ;1:- nii:C1.' 0.-1' ,)'b'l1l f-NH1~ mf.9° n"t.'09U I\~ .f/\ 7) Any person in possession of (or obligated with mf.9° n'PI\""r. fi'111.taAIf~ nl\-""'c °7'.':,:m'9u respect to) property subject to seizure on which a n..,-nc 9"h')1-)' f1'_fll ')-n~-}' nh:( rOlJ:I~ mY.9U seizure has heen made shall, on the demand of the /\..,-OC h4-\!. 0IJr.:t:m-f" ..,Yo:J' 1/\.H' c'1m' r"NlC Authority, surrender such property (or discharge "1\10.m- f1/\P'AtIJ') c'1.mf..,.m' f1I1tD.-} Urn:,. such ohligation) to the Authority, except such part /\..,-(1C "1\10.m- f1/\P'Afl)') rOlfI\~h-n m~9° of the property as is, at the time of such demand, l/\n"'~') "IYo:J' root.Of" ;)I\t.~-)' ,,/\.H' :1 suhject to a prior secured claim of creditors and :j;. O?r.:(-m-f" c'1m- r..,-(1C "ll10,m' fl/\P'AnJ'} suhject to an attachment or execution under any c'1.mf..,.m- "')1.',) r-"_f~1 ')-n~-}' /\07ll~h-n t..<j>r.~: judicial process. «'If.If,) r.,.~ h,)1.1f'1. 0-"1I1m. ')-n~:" OOtn') n..,A 8) Any person who fails or refuses to surrender any "'m1-1: f.1fr.A II If'f9° -"m1-1:~-1: /\')-n~": (/U1'U property subject to seizure, on demand of the 9°tJ-}I:" hlf~lD- r:J'tJll b~ 0011l') (n:J.tJft- b~ I\,f. Authority, shall be personall y liable to the govern- roy.:J'c'1nm-') mtJJ. hr. m/\1.' a1.9"C') fl._fA4: ment in a sum equal to the value of the property not "f.1'A9" :1 so surrendered, hut not exceeding the amount of j!' n')o-ll ,,').,.'" (:E) h-"ou/\h-ND' r..,A i'11l1-t~.), tax for the collection of which seizure has been (H'a1.OIJ~~H1~1:,) r ,"m' c'1m',)-(1~":') /\OIJll~h-n made (together with costs and interest on such t.:J>f."i'/1AIf~m- 1/\n-t 9"h11-)- hlf~ n')o.ll sum). ,,')+'" (:E) OUIP~:" rDl/.L/\1m-') r1-HH1 oom') ~ 9) In addition to the personal liahility imposed hy TCc'1,)"" 'H'a.bOlJ~ h'»)thii:A f.f.~;JA :1 Sub-Article (8), ifthe failure or refusal to surrender nllu "'),+'" OOIP~"" nf,,';J-m' P'C 1/\m-') ')-n~-)' is without reasonable cause, such person shall he '" _fll~hO mf,9" n;l'hll h~" rOl/.L/\..,O-)'') 1'),H1 liable for an additional charge equal to fifty percent h..,-nc "1\10.m- f1/\P'Afl)') .H'mf+m- OUIP~-}, (50%) of the amount recoverable under Suh-Ar- -'0. If,~1 0?'cj:t:m-9" c'1m-tal\~hOlD- ')-n~"" m,f.9" ticle (8). 10. taf.~1m- 1')"-(1 ;JC 0""1,lI f;l'hl\ ..,Y..:J'm'') 10) Any person in possession of property who surren- f1A-,'mfl)m- ;I'hl\ h4-f, mf.9" 0IJr.:(-m-f" /\.1\ c'1m- ders or makes payment in accordance with this hDl/.L/\..,n.}- b~ mf,9" ta/\O.}-'..,Yo:J' ~, f. If c.'A :1 Article shall be discharged from any obligation or liability to the delinquent person or to any other cn~' nu-n:" I\f, ,rO? +c-n r+1.9".}-~.}- OD-n"" 1'11: person arising from such surrender or payment. ~. 'Pll""r. ri'c'1fl):(-m-r i\./\o'f "n~~~1' f:"1.'OIf.1 32. Preferential Claim to Assets oo-n.}' h')Y,i'mO+ If'f; nllu "'P:E- OUlPl.-}' 1) From the date on which tax becomes due and ;I'hll -,'h4-f. hOl/.If')O.}- +')"')ll-f -,'h":/\" payable under this Proclamation,- subject to the hl\h,,/\+.H' 'Ltl.f.'~1\ :J'hll rootJt.A °IY..:J' . prior secured claims of creditors, the Authority has I1hO;r. (tmo V-R+ ,,~' .ti/\"'AII}~ f+1.,-+)-1- a preferential Claim upon the asSets of the person OD-o-1- ~cr l."AIf liable to pay the tax untitthetax is paid. 'J~ (iit~n?; ~1..&-A ~?t:t- ?t&.1IJcfI"'C.yr fa" 3'i .,., lUng '-9"- Federal Negarit Gazeta - No. 33 41hJuly, 2002- Page 1855 I' D?liTCD-?" -'CD- ;rhi\ fODhLA ..,1.;rCD-') I1f\OD 2) Where a person is in default of paying tax, the OJIIJ:" 1'4-+~ If'i f+'7 ~,)1.If~ f;rh 11f\P' Authority may, by notice in writing, inform that AIIJ') 01'4-:" "'h')f:" fA+hLf\CD-') ;rhi\ ~Ii person of the Authority's intention to apply to the ;J'h"",) f\D?hhLA f"t1.l,CD- ~ '):"h'+~ f"tfhh:" Registering Authority to register a security interest f\CD-') OJat. D?i\hLA ~')Jl!FA f;rh c)'&;f"tt,f\ in any asset, which is owned, by that person, to ..,0:" -'CD-u-o:" 0'Pi\:"1i +f,lf ~')Jl"f, ,)-Ol1:,) cover any unpaid tax in default, together with any f\outl'OCD- hilA f~,h.tt: :"c)tf1' f"t-''J' oulf~,) expense incurred in recovery proceedings. f"t 'A~ D?i\m')+<tf f\+ODtI'OCD-'CD-f,-'IIJA :: 3) If the person on whom a notice has been served i:- 11')0.i\ h,)+~ 1 f-,.,f\OCD- D?i\m')+<tf ff,l-'OJ- under Sub-Article (2) fails to pay the amount f-,'outl'OCD- -'OJ- D?i\m')+<tfCD- I1f,l-'CD- Oc!j +') specified in the notice the Authority may, by notice CD-i\1' ;rh ') fAht.f\ ~,)1.If~ f;J'h"" 11f\P'AIf}') in writing, direct the Registering Authority that the f\ODlI;JflCD- 11f\P'AIIJ,) f+ootl'OCD- -'OJ- u1H- asset, to extent of the notice, the Authority may, by .e-'IIJA : notice in writing, direct the Registering Authority 11')0.i\ h,)+~ (r) oolPl:" f;rhf}. Itf\P'Afl)') :rtlit that the asset, to the extent of the defaulter's interest 2- f"tLi\..,O:" -'CD- u-o:" ocrit"'"" "'f,lf ~ ')Jl4'>.f, . therein, shall be the subject of security for the total .},c)t,lI f-'m amount of unpaid tax. ftlf') : ooll;JflCD- 11f\P'Afl)') D?1i:': 4) Where the Authority has served a noticf' ')n the CD-')?" h~f laf,m.f,:" ')-ol.t: Ocri\:"1i ~ ')Jlf1' Registering Authority shall, without fee, register f f,l-'CD-') -}c)t'll ~ ') f-D?c.'TCD-'" OU111: Itf, ~ ').&;f\ the notice of security as if the notice were an fouf"" -'~.f.' f,ootl..,I1A : +1.,.. ftA f-Htm instrument of mortgage over or charge on, as the foofY 00-0:" ~,)1.+mO+ If'i: f'Pit:"liCD- ?"1,,11 case may be, such asset, and such registI.ttion shall, f"tLf\,CD-') ';rhh f\D?ithLA OD?liTCD-?" OOAho subject to any prior mortgage or charge, operate 11,"h'"~,)f,-"mO+ oofY OJf,'" ~,)f.D?Ii:t:OJ'?" (t'" while it subsists in all respects as a legal mortgage c)'&;OJf,?" htt:f f,4'>II1&-A:: over or charge on the asset to secure the amount ~w- h1=fr ;J"hi\ itf\00-'-o-'11 due. Ii- ;J"hi\ f"thLAO:"') h:"Cfl:" h+ootl'O -'CD- f1t, 33. Collection of Tax from Recipients of Supply D?liTOJ-'" -'CD- OLOOOCD-fD?~OCOC -,'..,I1C 1) Where, in consequenceof a fraudulent action or OJf,?" fAIf~CD-') ~,)1.If~ h1.C.,.. Ooo:"lfl- misrepresentation by the recipient of a taxable ,..h') f:" f+ooU10CD- -'CD- OittH":" ..,-of,1: transaction from a registered person, the registered h:J'hi\ ~, ~,)1.If~ OJf,'" OUe" fD?itht.f Ah person incorrectly treated the transaction as an ~,)f""thLAll:" h.f.'C"" fOJ-'f, ~,)1.If~ : f;J'tI.... exempt or zero-rated transaction, the Authority 11f\P' A fl)') OJf\.f.' ~ Ii 00+65j. ') ta?" e" 1 =frCD- may raise an assessment upon the recipient for the Oh:"Cfl1: Itf, fA+hLf\CD-') ;rhit ~')Jlh~A amount of unpaid, tax in respect of the transaction, f:J'hit CD-Uf~CD- D?i\;rOJ-tf f,Ahf\;rA :: together with any interest or penalty that has I- f:J'h"" 11f\P'Afl)') O')o.it h,)+~ (Ii) oolPl"" become payable. f\1VCD- f"tAhCD- D?it;rOJ+f f"th-"f\-:"') 2) The Authority shall serve notice of tax charged ODl~1P"f f"tf,lI 001f,) hf\O:" :: under Sub-Article (1) on the recipient specifying: U) +h4-f, flf~CD-') ;rhit : (a) the tax payable; f\) :J'h"" ooht.A ff\O:"') +') : (b) the date the tax is due and payable; and th). f;rh ') CD-Uf~oo,+OJ'" f"t;1:AO:"') 1.tI.: (c) the time, place, and manner of objecting to fl;r ~Ii ht\:\') : the assessment. 3) An assessment raised under Sub-Article (1) is r- O')o.i\ h,)+~ (Ii) ODlPl:" f"t-'1' f;rhit OJ-Uf~ fttUJ itcr~ hL'O'" ~,)1.D?liTCD-'" f;rhit OJ-Uf~ treated as any tax charged for all purposes of the Proclamation. If':" f,4»m&-A :I 4) Sub-Article (1) does not preclude the Authority g- f')o.i\ h,)+~ (Ii) .('');J1. f;rh 11f\P'Afl)') ;rh ') i OJf\~ ') ~Ii OD+4AiCD-')h+ootl10OJ- -'CD- from recovering the tax, interest, or penalty from the registered person making the supply. hODmf:" hf"1.CD-'" II 5) For purposes of Sub-Article (4), any amount ~- f\')o.i\ h,)+~ (i) hL'O'" h,vCD- f+-'O-'O recovered from the recipient is to be credited ;rhi\ h"'ODtI'OCD- -'CD-f;rhi\ ..,1.;r ~')JllJo'" against the liability of the registered person; and h+ootl'OCD- -'CD-f.,.-'O-'O ;rhi\ h,vOJ- f;rhit any amount recovered from the registered person is "'I.;r ;JC ~')Jltaili\ f,1.l;J'A :I , to be credited against the liability of the recipient. ?;- o')o.i\ h,)+~ (Ii) f+OOf\h+CD-') ;rhit : OJf\.(' 6) Where an amount of tax, interest, or penalty OJf,'" 00+4Ai f+ootl'OCD- -'CD- fhLf\ ~,)f.If~ : referred to in Sub-Article (1) is paid by the f,U')') f'')tl11 ODm"} ,+ootl'OCD- -'CD- h1VCD- registered person, the registered person may oomf:" f,"f"A :I' recover the amount paid from the recipient. ,.,... 'IX' fij'i.~~¥.~j ~fut.A 't;Jt')- ;JILtlJ <h1'C c!jr (}~ 1)1 ""} lufj!! Federal Negarit Gazeta - No. 334111 July, 2002- Page 1856 @~. f:J-)lft hmlt(I')1 fLf1.ri..:"~ fO?"fA V-~;J- ooljC 34. Jeopardy Assessment f"N1C hft1(lm. tlt\P'AIlJ1 f:Hl"'1 hlatl{Hl fO?f1. In exceptional cases where the Authority has reasonable Cj:"~ v-~;J' oolj~ 1 fO?flt9"1 fl<t 9°tJ1 f'''' f11' grounds to believe that the collection of tax is in ~'}Y,lf'1 ~c.' hft:f~~ u-~;J" la.f ;11'9" :"~tf,,..} jeopardy, and where a state of urgency exists, the fo<J.Y,o,Ct-00..,t\65J. 00lJ f fl' f ;J'tJft h4.~ ftl'}tJ ,£It,n Authority may issue an administrative order to a bank ~'}Jt;J", f.' ~ c.' ftt\:J'tJ ft h4.f. f4.f,CJ'} ft ~ '}.pft:J> Ib with a statement of justification supplementing its order uPl~ ~'}Jtf\mm- fhft,,-~y,C ,)-~tl1' t\tl'}h. fLf\1' ~c.- to block the accounts of the person liable for tax and :J-tJ""} mJtfm-.,. oomf\'} f,1-I\A :: ~u-'} ~'}:( f",'flC secure information thereon, and may make an im- hft',O.m- Ilt\P'AIlJ'} h'ltJ fll\~ f'f-oot\fl'f-m-'} hft'f'~ mediate assessment of tax for the current and any prior Y.trCC :'f.~t'l' I1ft'f'I\t\t.IH- ""} 'f:tj°C: 11f\"'" hP'C .,.c.',)- accounting period; provided, however, that the m.ft'f Ct-!Il.:'f' ''''~tlH''} ~'}Jt,rOf.-.pf\')- u7Y:lo, hf\fl'''':: Authority shall obtain court authorization within ten f",'flC hft',O.(D' 1lf\P'AfJ}'} UllU h,}"''', f'f'f\t1llD"} P'AIlJ'} oom"'9" fo<J,1-f\m. f:J'tJ"''} hmltf\'} (10) days from the date of issuance of its administrative "'A"" t\u7f.:l.., fO?l~ oo(.~ f\OIJ..,'f:'f, 'fl;": '1(D' :: order and further that such powers may only be used to elucidate information relevant to the assessment. ~)t.. :J'tJ ft h4..f. ft"f\m- 1'fl:J> 35. Taxpayer Safeguards IlIlU tJ~A r; oolP(.')' f"',rll OIJCJ:':(D.9" 'Hl(.')- fo<J..rllm- : fo?'mf).,.m-.: ~Cj fo<J,ooll1flm' fl"N1C Any property seized under Section 8 shall be seized. ~\ft',f).(J}' 1lf\P'Aflf'} ,n;..: f,lfCjA :: OIJCj:':(J}-tj° f\A held, and accounted for only by the Authority. No other fup'}O,p")' hilA IlIltJ h~A oolPl')' f"',rllm.'} agency of the government may require the property 'Hl(.')- U7Cj:f:m.'}9° f\A 9"tJ'},r,), 00 0' (.:'f. flOlJY:(.", seized under this Section to be transferred or given over ~'}Jti'1mm- m~9° ~'}Jt"'''f\~f\')' oomf:" hf,':;'A9° :: to it for any cause what so ever. If any rroperty seized f"',rll 'Hll')' f,t-i'im ~ '}Y.lf'1 h'ii,rt;L1: h"'1'fm-1'},Hl under this Section is sold, any portion of the proceeds in m-l1~r ;J.tJft h4.f. ho<J.t.t\°IlH' ~~ fl"f, flf'1(J}' l'}fHJ excess of the person's liabilities shall be returned f\'Hl(.'1: 1lt\(1.:'f' mJtfm-.,. y..oot\ItA :: promptly to the owner of the property. ~)'k f",(.ll(lfD' "'Yo:J- 36. Duties of Receivers (i. IHlU h,}4>"" m-ft1' H,"(.il0." OIJt\,), f)h.')-f'A',r 1) In this Article, "receiver" means a person who, (J}.ft'f fo<J.1~') f",ooll1 fl f\m- lHH. IH.oot\fH' : with respect to an asset in Ethiopia of a registered u) fh'll'}f f'}'fll')- hfl)t tfCf f,"f\fup person, IS: t\) hCt-CY.' (1.,)- OHLI. OJ~9" fltt:CY.' I}.')- f,f-i'ioo (a) a liqidator of a company; "'(.11 O. (h) (b) a receiver appointed out of court or by a court; flh.."t. m-ft1' fo<J.1~ Y.'C~,). llt\hY,t, : (0) oof'tf fl~,':J-m' P'C fo<J:'~ : (c) a trustee for unrehabilitated insolvent; IP) ftpJ,V} f\m- '},fl(.')- fo<J.fft"'~Y:C mYJtj° (d) a mortgagee in possession; (.) f)t'h.., ':j'f\o:J-ff\,f\(D''} f\m- f'}..,f.' P't. fo<J.f (e) an executor of a deceased estate; or 11~f.' : OIJCJ:fm-9"f\m- '1m- :: (f) any other person conducting a business on ~. flh.:'f-f'kf m-ft1' ft\ 'Hl(.:" i'lll0. If':' f,t-j'ioo hehalf of a person legally incapacitated. m~9" 'Hll')' f)~,':J'm- P'C f'f'Y.(." ,,'(.ill1. 2) A receiver shall, in writing, notify the Authority t1'l-7\"oofl:'f- m~9" '},fll'J: O~1f;J'm' P'C tl'l'Y.1. within 14 days after being appointed to the position 11H. hv-t\'1: h4>1.oom- .,.'} 'f..9"C: n:(~ ""} '1.11. or taking possession of an asset in Ethiopia, m-ft'f fi','OO m~tj° 'Hl(.')' fl.e,,:J'(D. P'C ,rf\ whichever first occurs. oolf.,.1 t\;J-h'" tlt\P'AIlJ,} u7ft;J'm.p ht\IH- :: 3) The Authority may, in writing, notify a receiver. of i~' f:J'h'" Ilt\P'AIlJ1 'Hll'1: IH'lil(l(D' YJ,':J' P'C the amount which appears to the Authority to he ff\ f\m- fO?t.f\..,O:"'} f;J-hft ~Y, t\oo,it:} fo<J.yft sufficient to provide for tax which is or will become t.A1m-'} f1'},Hl oom'} t\.,.ll1(lm- f)""th.Ct:Yft:J' ayable by person whose assests are in the posses- m-:J>A:: (j. sion of the receiver. "'ll1(l(J)' ; 4) A receiver- U) fl'}(}oft 1\14>"" (t) 001P(.:'f. O;J'hft 1lf\P'Afl)'" (a) shall aside, out of the procceeds of sale of an f'f'lf\Om-'} f11Hll oom'} mf,9" hOlJft:J'm <tfm- asset, the amount specified by the Authority 0:\" Oft9"9"'1:'f' f,,.Y,lf\IH,'} f\A f1'}H11 oom'} h111(.'1: 7if6f.1' ".e ""}{\ under Sub-Article (3), or such lesser amount as f\11;..:m- fft4>tj°fJ}A :: is subsequently agreed on by the Authority; . (b) is liable to the extent of the amount set aside f\) .,..,.'}{\ f\'O;":m- fl",,,,oomm- f1'}II'f) oom'} AtJ fi'(.hflm- '},fl l:'f- 1lf\(1.'''' hlf'1(D' f\(D. for the tax of the person who owned the asset; t\0?t.t\1m- f;J-hft ~~ 'f'mf<t ~lfCjA :: and rit) IlILU h,}4>?t. fi'oot\fl'l.(D. It cfC9" h:J'hft (c) may pay any debt that has priority over the tax 4>Y,9":"'1:" ft\CD-'} OIJCJ:':CD-'}9"~~ fLh~A referred to in this Article notwithstanding any .e"f"A :: provision of this Article. (;. .,.ll1(lCD- 01(}oft 1\,}4>"" (t) fi'm4>laCD-') :J.tJft 5) A receiver is personally liable to the extent of any fl.,.oot\h.,. 01(}oft 1\14>"" (g) 001P(.:" "'4>,}{\ amount required to be set aside under Sub-Article t\,O;":CD- ~1Jt+00'f f"'Y.l1CD-1 f11H11 oom'} (4) for the tax referred to in Sub-Article (3) if, and IHLU h1.,."" l\"'m.,.laCD- :J'hft il"CPf\ 'f'''',}{\ to the extent that, the receiver fails to comply with f\'fl:r- O",,,,oomCD- 1'}H11 Ah O..,A 'hnf<t the requirements of this Article. ~lfc.' A :: '!}\" ?!i1:~~r~% J...Yut.t\ ~;J~'''' ;JtLlTJ <h1'C <!.if ()~?)1 4'') Hin~ ~.9'" Federal Negarit Gazeta - No. 33 4th July, 2002- Page 1857 tJ~/.\ "11l~ Section 9 f'l ltll {t'1P,"f Records ui'J; . f'llt,n (t '1P'1'') f1"oo !'" 37. Record keeping ?i' f,"OOU1n {tar CD~?" fltUJ htp~ ;J.tJf1 footJt./.\ I) A registered person or any other person liable for tax "lYu;}, f"'fl}t\lH' ,,?e;:t:artju {tar h'lU n;J':Y' under this Proclamation shall maintain for 10 years f"'Ul.U~'}'} f'llt,n (t'1P'1' "1 ~oo;}...,. nh.')' in Ethiopia- f'~! arf11' "?f14>OU1'ht\(l~ :: (a) original tax invoices received by the person, u) f,"4>n,,:t:ar') f;J-tJf1 f.l.{t?f~ tp')~ :t>j{ : (b) a copy of all tax invoices issued by the person, ,,) f (tfl}:r:CD'') tP/c;:far')?" f ;J.tJ f1 f,l.{t~1' (c) customs decumentation relating to imports and :t>:{j lh) mY,h1C J>f1"fFl:w,'} CD~tjU my,w,oLIo f"tl exports by the person, :,:w,'} 6:1' 9>1', fcJrJ..r,,~ f".tjU';.tJ (t'1.\">:: (d) accounting records; and uP) f'l,,,,n UOl/1{l1'. 'he; (e) any other records as may be prescnbed by the lP) "'I\u',y, f'W.sP"Y' cJrJ,~f1'}C ncJrJ,!OJfJ)W. Minister of Revenue by directive. UVuPt,r f'N'l.U';, f'llt,n (t'1P,:)",) :: 2) For purposes .of Sub-Article (1), records means ~. ,,'}o.f1 h'}<#>X' (?i) ht.'O?" f'l",n {t'1y" °71\:" accounting records, accounts, books, computer- f'/."'11 uvt:P"sP1" : OU'U1{l1'. : ntt?"'r.ar,,'C m.f1tJ' stored information, or any other documents. f'I"1.07:'; m~9u 1\." "?C;:,:w.tju oul.~ '1aJ-:: 38. Notification of Changes I!):~I.:. I\m'lH :Y,'} f1"OUt;J'OJ:t> Every registered person shaH notify the Authority, in °71;:':W.tju f",ouWUl {tw, : writing, of: {!. f1oo' : hY.,t,7iw' : f'},?y" p't-ar II;}' : hY.l.~'~:":: I) any change in the name, address, place of business, OJJ!Jtju ;J'tJf1 f01/.h&./.\IH. tp')~:ar f,),?y" P't, constitution, or nature of the principal taxable 'h'):"f1,cJ>j), CD~9" ,?,,{to' fcJrJ.fh't'w.e;:,:W' activity or activity or activities of the person; and "''?f1t,,} ~,('.'1,} : 2) any change of address from which, or name in which, ~. ;J'tJf1 fcJrJ,ht,/.\O~ f,),?y" P't- 'h'):t>f1,cJ>j),fcJrJ,he; m'}(H.') h~t-7f CD~?" f1?" j a taxable activity is carried on by the registered f<I>fl. 'h'H'.If'1 j ~tJ')). ".+tJ(). fl"p'/,\fl}') nt?i 4>e;,)- person, '1.11.m.f11' "?f1;t'W:t>h"n~ :1 within 21 days of the change occurring. if)it' "? f1;J-W"t! sP"f f1ft "'l,.t~C (). 0 ~ u. ~;J' 39. Service of Notice Ii, fltUJ h'P~ oPlPl.~ f;J.tJ(). f1f\P'/.\fl)'} f"?,{t I) A notice or other document issued, served, or given fl}rar ,,?f1;J-W"t!sP1' Wy,?" 1\."°":;'(t'1J1,:)"ncJrJ,h by the Authority under this Proclamation, shall be 1-"ar u.~;J' IMth-~ ,('.Y.C"".; communicated in writing as follows: U) 1-¥'74il"'11: nh..}r-A'! arf11' f\ln (tOJ' (a) In the case of a resident individual, by registered nhf.t- ;rf1;J' : m~?" n4>1';)' ",?,ne h~f. letter or by delivery to the taxpayer in person, or n'h~ oouf1l1l~ CD,('.?"'h()' fl\.l\ 'h'}Y,tf'1 : if he is absent to any adult member of his family hOA'{tf1~ arf11' ""?')~lD"?" ht." outn1 or any person employed by him at his residence "f.l.{t CD,('.?"noulj t!ar CD~?"foo-! OJJ!.tju or place of business or professional practice, f1'?~ JPt- n01/.{tt-o~ P'~t- 4>1'~ "cJrJ,! {tt-ar "?1~ar?" {tar nouf1l1l"" : tflj?" provided that if no person. can be found to ,,?f1;J'w"t!ar1' f01/.4>0/.\ (tar tlA "'1'f accept such service then the same may be ~ 1j ar "?f1;J-cD"tf n'?lIc h4--f. oulj t! I}")' effected by affixing the notice to the door or ne ",('. CD,('.?"foulj tf 0.1: ht./.\ I1tf'1 other available part of the said residence or j place of business; W~?" n')'?y.' P't- hoo:r; P'~t. nou"m~ ,,) 1-¥'74il"'1'1: nh.'}r-~, arf11' "1f'1 J!:C:~")- (b) In the case of a resident body, by registered nhf.t- 7'f1;J' h"?t}~'1')' IH'uPII',l1ar letter to the registered address of the body or by f~C~-I: hY.'t-7f nou"tJ W~?" 11y.'e~": delivery to any director or employee of the body f,)'?~ JPt- f1;J- "01/.11'ar tP/'}~ar?" f P't, at any of its places of business; and out W,('.?" ''''''fl}t Oouf1l1l"" j (c) In the case of non-resident persons, or thier th) 1-¥'76J;1>'1.+rcD- Oh.')'r-~ f "/.\If'1- (t9>1' agent or agents in Ethiopia or by affixing to the nh.~r-~! ,,"ar CD~/.\m~?" W~1\01' n'h~ door or other available part of the redidence or Oouf1l1l~ W~?" f"?~1J. hlf'1 W~". n"?(t place of business of such agent if he could not . t-O~ f1'?Y.- P't- f1;t' cD~?" °"'" hou:t; j be served in person. Otf'1 P'rt.t- noolj tf 0.1: ,,~ OOO"l1lrt. 2) If in any case none of the measures specified in Sub- J' 01D-f1 h,)4>Jt (Ii) h1-"l."~~ 'hC?"jfsP"f h1~?" ncJrJ1~~9'" 9'"tJ')!..,. t)/'\1-"t} f~C~ 0...,. "?f1;J' Article (1) are effective, service may be discharged CD-tfsP"f 0 O1/.IJJm-O~ cry') ~ ar9'" ;J tI. fl} ,,~ by the pubIcication in any newspaper in which court n"?".,.9'" f\.L09'" ~"fl\/.\ :: ft"?""'lP/.f fCDfl)(J}- notices may be advertised, with the cost of such OJ"-\,fM1IC h""" I\~ ~;t'ft'l/.\ II publication to be charged to the taxpayer. ,.9". Federal Negarit Gazeta- No. 33 4thJuly. 2002- Page 1858 ~;Jt,,,, ;J'L"1~'1'C t!J[ /'It,?;?; 'IX' hi\'.~I~~~~'~ ~Y"MA ""J !itf1~ het:A hl"'C Section 10 f,"ll}:'; fO'/."'C'IHH' I"'C~"" Appeal procedure . fAIt"::}. AfI1t. \\0'/.'1; : 40. Review Committee ~'.i ,} flJ). ~I\", f Mt,,::}, AflJt. \'D'/.'I; A I}1\ f1:}')10 111\1'"A Members of the Review Committee shall be appointed by A~'/..Il',.} 11"I1.sP',1"O'/.t{t'h: f,{tfO'/ft. :: the Minister of Revenue upon the recommendation of the \,o?,'I;(I)' {tftO'/.c;,{.(I)<I"'AflJ1c.' "''"I'}C Head of the Authority. ~j?i' 4' \'O'/."..lD' 'hnt.'",: ft:")1 fl- 111\1'"AflJ1 Ifl;'= 41. Powers and Duties of the Review Committee V) (1:}'h{t h...\",':)'. ou"'''fi£ h1Jt.,I'}: lOftY: "'1. 1) The Revi~w Commiuee shall be accountable to the hV;,,\'.I."l (1)f,9° f:}'h{t '"1,('0:" h1Jti'P'iA 0,/ouAh:J:sP1") ftououCoucci head of the Authority and shall have the following f°'l."'Cf}' ,}: duties: (D''''), ft ou 0 m ft) h<l'I.I1"} M}A::}'sP:1" ,n: "lTf..,,), J'I\:':(D'1 (a) to examine :md decide on all applications o,/ci:':(D.')9° f,)lh.et: O'/OI.;fsP':)" (Df,9° submitted by tax payers for compromise of ou I.~' 9' ':)'.ou {t'll (t'{1: penalty and interest and on the tax assessed; lh) f1lJOCou/,. I\,l'. fO'/.1'f(l)'11'P,,l'. 11000.oufth')' (b) to gather any written evidence or information {.'1.~: "'C(1 fO'/.mf1>(D'1 'rJ'<f: h')P'.OUA{t relevant to the matter submitted; h:}')1fl- Aml'}{t') .'JC {1"'<r:}' (1)f,9° <1..,';1' (c) to summon any person who directly or indirec- /}At'" ou,)",~: °n1-"')' J'ftm") o,/,)C;:m.')9° tly has dealt with the assessmen~. to appear (a(1).ftJU<rt.'}: before it for questioning him about the case IIV) f:"h(a. /}ftrAlTn f(am(D' f:,.),{t (D"~'), ,H,hl\C;:: f-f'D.'/.f\ h1i f,t,.n Aer:(},: m'{1<f> under its investigation; and f,"(am QUtY).') ftJ'/I..T,-r: . (d) to review determinations made by the Authority rAtJl') f,c;' l.erA:: for accuracy, completeness, and compliance ~. f Mt,,: :,. \,(1'/.".. h:"h {t h4.f:'1' fO'J."'C{1(D"} with this Proclamation. Mt,,::,. fl..eJ!, f~:,r.ft(l}. :,.),{t hi.f. f:J-},{\ (D"~), :2) The llead of the Tax Authority may approve the o'/{t:"a"'~,e 11,('.1.(a(D. 0:( ."ei')' (D.{t'I' Alt"::ho,') recommendations or remand the case, with his ., 11<1' I. {1 (D':: observations. to the Committee for further review. !:. f:"hfl- /}ftrAlTn :"'1\&, f\W'l.'I;(D"} f(l)''''», 0')'11 3) The Committee shall only review application sub- ft..eo.~:~' mJ!,9° fl(D"~), 0 I'}{1' IIA".{ttJ'l"'l 9U)1') mitted to it within 10 days of receipt of tax ,e,,:'} {11/U..'t\(~".P'f, h'H':,(, hVt:"J!, ft\'("I:':OI' assessment notification. ft, (lU A (a (D' J!;')"I\ A :: 42. Waiver oFPen;J!(v ':'.i~' (lU,"""},') hft°,/')I'}'} The Review Committee may waive administrative penal- \IO'/-:I.'(D~: f',I1.9'':)'' 0'/,). {\'h: {1"'/..e(l)lf)(l}' (lU(lut.,e ties in accordance with the directives issued by the (lUI}'I. ,} (1:"h{\ hi.f. I\f, f,'.lI)(\(I)' ~\f\"'P'Y,/..(1: (lu."",,). Minister of Revenue. nau.ft. /IJ,e,9" {1h&,A hV;'''1'} o'/.~:I.'" f,"}"f\A:: .+3. Appe;J! ':-.it. f,'" /};\ I) Any person who objects to an additional assessment ?!, (111ftrAflJ). f"'l\ft&.(I)<') f,,'(.L},°'lt. :,.t!{\ (D'''#), made by the Authonty has the right to appeal. within f"'l.:J>cDl)° . tl'/ci:':(D.lJD :,.), {t hi.f, f :")J f\ (D.I'}), 30 days from the receipt of that assessment (D...#), "'l{\:h°'f.,e hf.l./'Ia}' (Df,9° {1AI1,"::" \1"'/:1: notification. or from the date of decisl<JIl of the h"'/'Im{1'} "") :~:lJD(-: (1t!) (I}'I\I'}) <I'(,'} (D'{\'I' Review Committee to the Tax Appeal COml11lSSlOn (1/}ftrAflJ). f,"(1)/'I'1(D") ,"(.L},o'/t. :"h{\ ~o/c (1tJU,Y.) /}ftrAlT)). Inf: ntJ'/{t,e'u ft"1-flC by depositing in cash with the Authority an amount ('19°1'} .e,"l/};\ (a~. "./}q, J!,'"I/)~ f~.pI.'{1 (/I',{1'} Aft(D':: e4ual to 50% of the additional tax a?sessed. ~. fl'}o.{t (?;) uUIPI.'} ff.."l/};\ All,"::" <I'Cf1 2) If a person appeals in accordance with Sub-Article A1"''''' f"N)C f,'"I/}:'; 1'/}q, :J'h{t hi.f. {1'hL1.°'/t. f"'(D/'I'1 (I) and the Tax Appeal Commission determines that (1'}') :}'h{\ {1oo.ft' (DJ!,1JOntl&,A fCJD)J&.A "l,~..:" the person is liable for the additional assesement, he h')P,ftIH' (1)<"1). h/'lml)-)' <I") A'}{\'Y' nt!) <I") 'UL shall be in default unless he pays within thirty (0) (D.{t<r :"h{\ hi.r. fO'/,&.ft"II)-)") ,"(.L),o'/t. :"hfl days of the decision of the Commission. II A h&.ft -ri."'C;: ., 'D':: 3) If no appeal is made within the period prescribed In (4) f1,"(luft\\'l'(D' 'UL !:' IltLU A')"''''' 10'{\ A')"''''' Sub-Article ( I) of this Article, the Additional assess- (D'{\1' ,l','"II1:'; I,A<I'Ln (11lt\rAI'I';' f".tf) (a', (D' ment of the tax made by the Authority shall he "'(.L}'U'/t. :,.),{\ .HI)JftC;:Ci ftJU(.L\.1.7i 1ft:' mP,..e(D'~, deemed to be correct and final and shall he !In ".\ti.f, f,tfll'A:: mediately payat)ie. 1i. flLU A')"''''' ')o.{\ A'}"'''' (?i) ,~:'L')"f, h')f.'hnl)<l' tl'(;': fl'lIl '"I'I1C Aerf-' {\(\f'''l/)~ A'H'}",)'. 4) Without prejudice to Sub-Article (l) of this Article, f"'f.""'" h'}f.A'"I'),n.,:J-:,:w- (1/1.tJ ner:~ OUIPI.')' f,"(D(a). the provisions of the income Tax Proclamation. :")1(\1") nO'/.OU(\t,,)- ft(1'/.4'Cfl' J!,"l')'l,u:}'. "'&.tJ~. concerning appeals shall.mutatis mutandis. apply to J!,lfci ft.:: appeals regarding taxes' imposed by this Proclamation. 'IX' ?ii'l:U:iii4..Yut." ",7t."f ,7"'."" .1'C t!)f "~fti ""!iin!! 't.9". Federal Negarit Gazeta - No. 334111 July, 2002- Page 1859 44. Burden of Proof ~~. fD7f1lP"'" ;)I\k~+ The burden of proving that an assessment is excessive or f,,'mM(J)o "'1IC01f:l:~ f1J~tJD f:1'tI(}. C)t\P'~tTJ'} (J)o(J)oUf). that the decision of the Authority is wrong is on the f fI m +tI tI ~ "~1.ft,.. 0 "7..~ OOOZ,.,.C 11 tI ctl C fU7f1l.';1: ;)I\k~+ f"'mfl~(J)o'} :1'tlfI m~'I" fC)t\P'A person objecting to the assessment or desision. 1lJ). '} (J)oUf). f"t.4' 6JoD(J)ofl(J)o ~1fC; ~ II

Section 11 tlet:~"P't. ,,'} I: Administrative Penalties fI.,..'; 1.t. ce ~ 1lJ.,."f " Uf~~' ., .f ~1lJ"'"f . 45. Penalties Y,U'}'} "'P~. nt1D.,.I\t\et: hH.u n:1'"f f.,.tlltl~""') The following penalties are imposed for violations of this 1'4.'''~ f L8t1D :J'tI fI h4.~: Proclamation: u) t\'f'~l17t + ;l.tlfI t1Dt1D1I111 ft\O"" 1ft;> a) Where any person engages in taxable transactions ...Y,t1Dfl111 ":1'tlfI fOOZ,hLAO"" "'11~+ fOOZ,fh without VAT registration where VAT registration is C;(J)o'}D7C;T(J)o9"fI(J)o9"1I1C)(J)o"'ffoC.., n4>fn.'" required - 100 percent of the amount of tax payable 1.11.u-t\. I\hC;(J)o~1D'f'}..,1: Ft. t1DtlJ.A ft\n""'} for the' entire period of operation without VAT :1'tlfI f 1'CfI'}"" ("'1: t1D"'TCfI'}""): t\) registration; 'I' h 4.~ fOOZ,1f ~ID' :1'tI fI ,,'} -'l"',} fI m~'I" f D7.J. +Y.ID' "'.,.c.'11 ",}-'l&l.1.9"C fOOZ,f1.C..,Ufl"'~: fth (b) Where any person issued incolTect tax invoice f;J.tlfI 1.lfl~"H;J~'" f"'lnm~'I" f;Jot1f1 resulting in a decrease in the amount of tax or Y.lfl~ t1Dflm'''' fl.1'11D' fAflm nY.lfl'f. ,,~ increase in aClTeditor in the event of the event of the f.,.t1Dt\h."ID''} w~'I" n""'I~1: l\.hJ.A fD7.1 failure to issue a tax invoce - 100 percent of the 'lID''} ;l.tlfI.f TCfI'}+ (",}Yo' 00'" TCfI,}'}): amouant of tax for the invoice or on the transaction; ,.It) t\"'~D7~ :1'tlfI fA,,,oofl10 flw- f;J.tlc'1 Y.a\~ (c) Where a person who is not registered for VAT (aT'" f"'11" ') Y.tJ'~ nflmlD' Y.lfl~ I\y, f-I.oot\h issues a tax invoce - a penalty of 100 percent of the '''ID''}C; 10. D7Yo'l.., fHlln"'~'} ~1C ..,'} 10. ' "'fY.':'" f"'llD''} f"'~D7~ ,. ;J.tlfI fTC tax which is indicated in the tax invoice and is due ",')."f. (,,'}y.. 00'" TCfI'}+): " for transfer to the budget but has oat been trans. nt1D"'~ ~..,. ~h~I\A:: felTed; and uu) H"r1"'~ ~1 n"'1.~11iD" pDlPl"" 1\.~.1' fD7.1 (d) Where a person fails to maintain records required 'lID") f'£"'11 fI~Yo' fAftl fllD' f'£ fl fI~?:t:'} under Article 37- 2,000 BilT for each month 01 "Affln..,. t\~f'}.';'}~ mc mf.9" flllJo h&.A portion thereof that the failure continues. fttJ'~1D' 1.H. 1IC ~7f. f..,.flJA:: ~:,. f;J'hfl D7f1;l'f1Jctf'} n1.Ii,lD- c)t\D7~l1l flt\D7.&.O'l" 46. Penalties for Late Filing ~fIJ')' 1) Execpt as otherwise provided in this Proclamation, a ?i' I1H.U "'P~ Ot\.1\ "t.\:\ '} "'}-'l&.~9" h,,'mMw' person who fails to file a timely return is liable for Ofl."",c: O"'fDfI~1D' l.tL ID'fI'I' f ;J.tlfI apenalty equal to 5 percent of the amount of tax D7h;J'm~ ..,f..;J'ID''} fA .,.mllJ ;l'hfl h 4.f. t\"., underpayment for each month (or portion thereot) fl1..,. t\"f'}P,'}~ wc my,,.. fm~ h&.A t\1f~1D' during which the failure continues, up to 25 percent of 'lIL: f~"'hLt\ID''} ;1-hfl ?;TCfI'}'''' ("9"fI'''' such amount. .1t1D"') ?)?; TCfI'} + ('If "9"fI'''' noo.,.) qul\ "fI iL fo'lfl 00"'651. f.h'f:I\":: 2) The penalty under Sub-Article (1) of this Article is ~. t\t1D'f.oo~f mc mf.9'" ftD~ h&.A ntnlD' 1.tL limited to 50,000 Birr for the furst month (or portion f;J'hflD7f1;,'mctf fl\"'lnfllD' 'lILU "'}.,.~ thereot) in which no teturn is filed. '}o.fI h'}"'~ (ii) Yo");J1. oolPl')' fD7.het:t\1D' 3) For purposes of this Article, an underpayment of tax OU"'Ii"k hi}C jitu ('19"'" if.u) hf.OA1'9":: is the difference between the tax required to be ;:. MlU" '}.,.~ ,,&. .,O,/" J' A"'hJ.t\ ;,.tlfI ~ID' shown on the return and the amount of tax paid by fOOZ,'1t\1D'n;"hfl U?fI;hD-t.r I\f. oo;J'f-). mn the due date. lf1+ "c.' ;J'h(}. uuhJ.A '}t\(l.). .,.'} n'''hLt\1D' 4) In any event the penalty may not be less than smaller ;l'hfl ODtJhA ft\1D' Af.~')' ~ID':: ~. ClD7c;:f(J)-9-'u-).;J'fD7.IlJt\1D' :"1lJ..,. "''1'1\0 h1'00 of the two amounts: t\h1:"" h1f~'''~1D' f~fI "f.If,}9":; (a) 10,000 BilT; u) ilC ):i'f.Ui (b) 100 percent of the amount of tax required to be t\) O;l'hfl D7il;l'mctf I\f. OOOOAh'''' MnlO"" shown on the return. f:1'hil oom'} f TCfI'}"" ("')1: 00'" 1'CfI'}+) 47. Late Payment Interest '1' "..,f.+ .n.,.h4C..t\ :1'hil I\f. ilt\"7..:1'fl1I mt\1: 1) If any amount of tax is not paid by the due date, the U) t1DhL~ O~OlO+ .,.'} I\~"'hLt\ :1'hfl: ODh&.A person liable is obliged to pay interest on such hH}lO+ .,.'} "ilh.,.hLt\O"" .,.'} c)t\1D'VL ID'fI'I' amount for, the period from the due date to the date ;l'hlt h4.~ mt\1: foohLA ..,f..:1' "t\0')':: t\) f1H.U "'}.,.~ '}D-lt "'}.,.~ Ii t1DWl+ fD7.hLt\fD' the tax is paid mt\1: fD7lthLf ~h c)t\LID' f~l1 ~t1D"''' n'}..,Yo' 2) The interest rate under Sub Article (1) of this Article 'I'}h-"f ~~ I\f. O'Pt\m- h~"'~m- fD7nY.~f is set at 25% (twenty five percent) over and above the mt\.(-. (011). 1\" r;?; % ('If ",..flT (1t1D"') highest commercial lending interest rate that ;l'h t\-O + f.1fC; ~ 1/ prevailed during the preceding quarter. 1J\' Aittf~ ~1.~A ~;JtT ;Jti"l .1'C tJr ,.U~n'on Inn ,.,.. Federal Negarit Gazeta - No. 334111 July, 2002:- Page 1860 ,I ;';:'"'.:..,:; , _., ,"" .~. ; "114:'l\'Krlo 'o;W'+ . , '_."',' " f,'"

Section 12' . ", '" '. '-'IioJ;: "";!'t' "rD'lA";~" ,'J" Criminal Offences .' ~~. f1;l-hh "t. .,-t.f.~--"m1~Nl\iI{-~OT JP"- 48. kfrocedur:c in TaxQfJ~ce Cases .JPC'iT" .,. , . < . ':;; ~, - ~ \ ' " A tax offeR~e. . und.cp;,this Section 12 is a vio,lation of the OJ(» i.,,~ h~A"'):1f+H-llf4:+h;f"hh"" f"t.f.1l1ID- ".. criminal I,\w, of Eth;opia aDQ,s~allo be charged, 1 ;, m11:f\"~' flb1JS:K" OD"~ih"1,aM"'''Att: f"t.f.1l1ID- pro$ecuted, and appealed iQ accor<Jance with Ethiopia nOUIf'"hI\- f"tOUaPl.,.OJoiPt~fCD-).~ t."'I1~ f"t+ . com- ndJ1~t\~ towj;'f,~ ~riminal proceQln'e laW. lit"'l JP~:"'JPC'iT ,OUaPlT t.tf'iAII ,1',;' 49. Tax Evasion ~i. A person who evades the declaration or payment of tax, ,ii' ih..", ooulIJ.h ;f"hh h"f\ouhLA . . ! ,. ,t~.; , . . or a person who, with the intention to defraud the ;," ~"" OOU~h..fflO(\°'P"' '+hh. ''',h;f"m+ m,.,. "', government; applies fC?ra refund he is not entitled to, , f"t~I\"'O.~' ~hhIAh.f."m""081"'JPT1 f\1I7~ ncoc O~fI-o M1.1110J01 +08"11 ;f"hh fmf+ commits an offence and, in addition to any penalty under , 117'iTID-"fI(D-m1:lA ~11.LII08""'m~AII hf\If.,,. Section n, may be prosecuted and, on conviction, be . OH.U h'''~' htt:A Iii OUaPlT h"'l"lAOT OU+AI. subject to i1term Ofimprisonment of not less than five (5) IH'QJ."7t 1'4-"'~ oul1'''' n~c.(- o.T fl.l?11' h~ years. . 'i'ouT 0"711" ~P'~'T ,.+trtAII 50. Making False or Misleading Statements y. fthfl"'- m,.,. htata"f oul~ hf\"7.}>lll I) A taxpayer who: (a) makes a statement to a tax officer of the Ii' "7c.'TID-IJO;f"hh h4-,.:- v) f\;J.h,," 11t\P'AIl)1 aP~"'~ h11:1 '11'110.,. Authority that is false 'or misleading in a ouf\h'''' fVr'i."~ en,.". htati~'- oul~ l+lni IDluerial particular, or m,.IJO (b) omits from.a statement made to an officer of the f\) f\;l-hl\- '1f\JPAIfJ1 aP~"'~ f\.+c.f) h"t111OJ- Authority any matter or thing without which the """'f\6'i OJoh1'DP"'f\~OJ-') htata:r, f\.11-C'" statement is misleading in a material particular, O"t"fA h~~')tlPt)"'T f"t1I1TID-') "1'n"f commits an offence and is liable on conviction. lh+l ~,)1.If"i 2) Where the statement or omission is made without fm')1.'A hh "OUaPlTO:J-AII . f thflT ou..,I\-LID- f.,.flmlD- m,.,. OUt)"'T reasonable excuse, I' f"t111ID- "1'11 f.,..,.mID- 11\0-1: ,.h11+ flf., (a) and if the inaccuracy of the statement were ~,)~I1'''i undetected may result in an underpayment of v) fou..,I\Al.1D- Thhl\~ I1\tlPlf1 f\.1.lhOT tax by an amount not exceeding 1,000 BiIT, to a Il\ou:FA- f\.h.f.A f"t111ID- ;f"hh hl1C liif.u 'fine of not less than 10,000 Birr and not more OIl7t.OA'1' h,)f\ ).1.1lh.f.A fll7.11.c.., hlf., than 20,000 Birr, and imprisonment for a term ;f"hh h4-' h-oC Iif.u 01l711h ~'i hl1C of not less than one (1) year and not more than 3'if.u' n"7t.OA1' f11"11 OU+-L' ~'i hli 'iOUT 01l71')h ~'i he 'iouT O"7,.OA'r three (3) years, and ~JP ~T t.+",A:: (b) if the underpayment of, tax is in an amount I\) h1f\ ~').IlhLA fPt1.l1ID- ;l'hh h"JC liif.u exeeding 1,000 Birr, to' a fine of not less than fD1J_nA1'hrr., h.nc ~7f.u 0"7.(1')" ~ci h'Oe: 2Q,OOOBirr and not more than 100,000 Birr and rif.u n"7,.nA1' f1,)""1 OU"'6"l~Cihe '}ou.} . imprisonment for a term of not less than three nD1Jl')h ~'i h~ '}OU"" O"7,.OA'r ~P't...,. (3) years and not more than five (5) years, ,..,. Il)A II 3) Where the statement or omission is made knowingly or e. f th ('aT ou..,I\-L f .,.ltmOJ- m,.,. out).,.,.,. f"t'1 I)OJ- recklessly: "1'1) ).1<\t)"'T lA"",l11D- If') .,.1I/\- m,.,. (a) and if the inaccuracy of the statement were Ohl1.(-.TA"'~"T flf., ~ 11.~"i, undetected may result in an underpayment of v) fOU..,I\-LOJ- Thhl\~ 11\0011'') f\.1.lhOT tax by an amount not exceeding 1.000 Birr, to a l1\tIP:FA- f\.hLA f~11)OJ- ;J-hh hl1C liif.u fine of not less than 50,000 Birr and not more fl"7f.OA1' h1(1 ~1.1lh.f.A f"tl1.C'" hrr., ;f"hhh4-'hl1~jif.uO"71,)h~'ihl1Cfif.u than 100,000 Birr, or imprisonment for a term O"7t.OA1' f11,"11 outAi. ~'i h~ '}OUT of not less than five (5) years and not more than 0"711h ~'i h('}OOT O"7,.OA1' ~P'~""i ten (10) years; and 1\) h,)f\ ~1.1lh.f.A f"t1,l1OJ- ;f"hh hl1C /iif.u (b) if the underpayment of tax is in an amount f"tnA'r hlf., h-oC (f~if.u 0"71,)h ~'i exceeding 1,000 Birr, to a fine of not less than hllC nif.u O"7,.OA1' f11"of) OU"'AI.~'i 75,000 Birr and not more than 200,000 Birr, or hI '}ou,.,. O"711h ~'i hI~ 'iOOT O"7,.OA1' imprisonment for a term of not less than ten (10) ~P'~"" years and not more than fIfleen ( is) years, "+Il)AII 5], Obstruction of Administration Y?i', f;J-h,,",) 111\P'AIl)') P'~ hl\"7('ac.'hA ]) A preson who, ;; . II'I'iTOJ-" ('aID-:- (a) obstructs or attempts to obstruct an officer of the v) lULU hfJ'~ ouaPl"'- P'~OJ-') O"7h'ien') "f. Authority in the performance of duties under 11\') f;f"hh 1)I\P'AIl)') aP~"'~ .,-..,I)C this Proclamation, or 1('a'ihl\ m,.,. 1\"7('a'ihAf""hli m,.,. 1A' li1f.~f~li U.t,.A ~;J~+ ;JnlfJoft'1'Ctlir I'I~n .;.; lifU ,.,.. FederalNegantGazeta- No. 33~ May; 2002- Page 1861 (b) otherwise impedes or attempts to impede the I\) f''''P:(.1' ".1.'89" n"7c;:fOJo9" """ "1),,~1 administration,oftheProclamation, . , 118C;hl\ tD~tJ- I\"7ttC;hA' f''I''hl ~11.I1'~f corhinits an offence and is liable on CQnvicpon tD11:A ouL811D-.,.l;J..,tnf f\Ll~nT h-nc to a fine of not less than 1,000 Birr and not more i?f..u n"7nn "AC; h1lCrif.u n..,,,nA1" f'11t111 than 100,000 Birr, and imprisonment for a term ou+--t "AC; nl(fJol\+) ,00:,. "Art-+ ,,+ntAII of two (2) years; f'''7. h -J'''''+ "A "A~tUJ1 f' irlDlt18,... ,,"Ir>T C; .,..., "COT ~. 2) For purposes of Sub-Article (1), the following and f';J'hll-1 "I\rAnt1 rt- f'''718C;hA.,...,"t-r}-1f~0J0 similar other actions are considered to constitute ,e.tDit..-sh-i .. . obstruction: . v) f';Nln h"-'" 10. "n1"f f'rt- "A1c}n:J>c1.~T (a) refusal to satisfy a request of the Authority for f'''7.OUl\h-t: 18~'"""'"'): ~;rC"'T1 ~~9" ,,"Ir>T inspection of dpcuments\ reports, or other infor- "7fr":flD-')9" oul1{~'f ftOUQDCOUCf';J-hll- ,,1\ . mation related to a tax~pyer's income-produc- rAIIJ1f\m,e.c} L:J>I.~ Ifli l1\ou1,+i . ting activities; , . I\) f';J'h lI- ,,1\,.. A tl)') 1\'1'14: "A1-\+C-n l8.111 (b) noncompliance with an Authority"request to L:J>'.~ Ifli 11\001")': report for an interv,iew; th) f';J'hll- 111\, Atl)') 1Pt-"'~ w1.;J-hn h~" (c) interference with a taxation officer's right to f'1"'~ , t- (1;J' I\ou..,,,+ 11\0J01OU1l"" enter the taxpayer's business premises. 0011...1:: 52. Failure to Notify :l~' I\lD-'I'') 11\"7n;J"(Dc} Aperson who fails to notify the Authority of a change as ",)+K" C!)~ n"7.1t10J0 oolPl"" nfJo).;J'sPT ",e. f'-J".t.1- required by Article 38 commits an offence and is liable I\0J0(""""') I\;J'hll- 111\rAtl)') ,,,n;J'w+ "7C;:f0J09" (a0J0 on conviction: 'I'~"'~ oolf~ n~C1.' 11...,.f\l;J1'1'i (a) where the failure was made knowingly or reckles- sly, to a fine of not less than 10,000 Birr and to V) 'I'~'I: '.,.LOooOJo 1f1 "'1I1r> tD,e.9" Uh"1.' imprisonment for one year; or :':A"'~~')' f'1f~ "A1'.1f~ h1lC Iif.u n"7f1n ou+6Ii "Afr'nji '00+ "Art-""; (b) in any other case, to a fine of not less than 5,000 Birr '",)""1 I\) 11""1\.""" fJo).;J-sP"""h..1C ~if. n"711n f'11t111 and to imprisonment for six months. 00+6Ii "Afron} OJC "Ar t-"": 53. Offenses by Tax Officer ,e.+tl) A:: 1) Any tax officer or former taxation officer employed in carrying out the provisions of this Proclamation ~i~' n:"hn "I\rAtl)~ IPt""~T f"7.~.OIlD- 'I'~"''''''' who, i). fflU1 "'P:E- 1.'1;J1.~":f' I\"7n~.09" n;J-hn '11\"'" . .- (a) directly or indirectly asks for, or receives in Atl)~ f'''+mt. IPt..,.~ tD,e.9" f'+ 1.''1'' .,.+tl)~ connection with any of the taxation officer's '~nt.:- duties, a payment or reward, whether pecuniary V) n,'h'" oolPl')' ft..r1')'w, h"7.1l) h~f w,e.9" or otherwise, or promise or security for that 'liA"7')' 0J0'1.1.h"''''ml.fH' .,...,l)C ;JC n"'f ftl payment or reward, not being a payment or 11.,.'1':" w,e.9" +'I""~ l)AIf~ 00111.' f11t111 . reward which the officer is lawfully entitled to lD'~cr """ ,,e.~"" h~f w,e.cr n(l\;J' "A')-\1.t. receive, or ..,1\.), fmf'" tD,e.9" f.,.+nl\: I\h~ftD- w,e.9" (b) enters into or acquiesces in an agreement to do I\ntll;J'tD- "'n~ tD,e.9" ouf"1f fmf+ w,e.cr or to abstain from doing, permit, conceal, or f'.f.+nl\: tD,e.9" connive at any act or thing whereby the tax 1\) h;J-h n n"7. 0J0 10. ",e. "71.1'nc nc W,e.9" revenue is or may be defrauded or which is ""~') ;J1.~T;JC tD,e.9" h "'(amOJo hft U "'P:E- contrary to the provisions of this Proclamation ;),,~.~+ ooAt)fO ".1.'89" ;JC f'''7.:J>t.1 -J'''''1C or to the proper execution of the taxation 1\00 L8fO: "7 ~ l.., f"7.1" 0J01 h"7 ~ t..., officer's duty, 1\00 :J"+"1i -J'10: IAIf~1 ~1C I\oo~+~: commits an offence and is liable on conviction n;J-hn ,,~ f'''7.L89''1 f'''71.1'nCnC .,...,"C to a fine not less than 50,000 Birr and to I\OU1.0c}tD~9" n9"rm.c I\oo.,...,nc tD-Af1" imprisonmentfor a term of not less than ten (10) tD,e.9" n"7.1"0J0 "7C;=f0J09"OJoA tD-n'l' I1ftU years and not more than twenty (20) years. .,...,"C ou.,."n~1 f"7.1lt,e. n9"9"~')- f(am: 2) A tax officer or former tax officer employed in 'I'~"'~ OU.,.~ n~~ n.+ f\~;J1'1' h..1C jif.u carrying out the provisions of this Proclamation, f"7,e.nA'r f'1')tI-n ou+~ "AC; hI '00"" except such information is.required by the Commer- n"711n h3' 'ou+ n"7,e.nA1' "Art-+ ,e.+tl)AI: cial Code of Ethiopia to be published in the Trade f;J-hn "I\rAnt~ 1Pt-"'~ f'1f~ tD,e.9" f~nt. "AC; Gazette, who, I' f'ftU1 "'P~ ~': ;J1.~T I\"7nL89" f''''+mli nh."" (a) discloses to any person or that person's res- f'k f ,.., ~ ih.., n1.., ~ ;J u,tl) ;J-+'I" "A1-\tDtl) presentative, any matter in respect of another h;J-tltlOJo,,e.~+ oul1{ nn"'+Ci person, that may, in the exercise of the taxation officer's powers of the performance of the v) :t'hl\1 O"7nL89j l1~ "I\ID- rAtl)1 tD,e.,.~ ..,1.;J- 9"h11+ ftD+0J01 f',,"" "'0J0"7c;=f0J01,. taxation officer's duties under the said provisons, coine to the taxation officer's oul1{ I\"7c;:f0J09" 180J0tD,e.9" f'ftf 180J0 """ knowledge; or tDh.A I\"'~ 180J0"It,At:; f'(ami "K'. fii\:~~t~K ~Y..IAA ";l~'}' .. ;lILII) .'I'C~r (ak ~1"") lin! 'H1". Federal Negarit Gazeta - No. 334111July, 2002- Page 1862 ,,) mi.tJ h'P~ OOIPI.T ;J-hh1 O"7h~O~ 1.1f: (b) permits any other pe)"son to have access to records in the possession or custody of the '''tD-1 P'AtlJ1 ""7hLO~ tD~~ fp'1r Authority, except in the exercise of the taxation "'1..:1'tD-1 "OOtDtlJT 'h1ltlh"fA O:1'hh fl" officer's powers or the performance of the P'AtIJ.,. H1 f.' fD7.11tD-1 "7IjTtD-,}9'\. 00t.1f officer's duties under this Proclamation or by nCj:Cf: o.T T~tJ1I taAII"> Oh""~C "Y'h""~ order of a court; tD1'} h"'AI.': ff1m 'h,}~II'''i commits an offence and is liable on conviction '1'4-""~ ooll''#- OCj:Cf: o.T c"1.1.;J1'1'hflC Iif.tJ to a fine of not less than 10,000 Birr and to 0"71,}h f1'}HfI 00~Mij. 'hlj hl(o-"T) 'OOT imprisonment for a term of not less than two (2) n071,}h: h?;(h9uhT) 'OOT O"71oOA'1' years and not more than five (5) years. 3) Nothing in this Article shall prevent a taxation 'hP' IrT ~~tlJAu officer from disclosing - [. flltJ h'}~;t 'Y:'};J1. f;J-hh fl"P'AtIJ'#- IPto"..t;=i (a) any document or information to- u) "7IjTtD-~ f1.,f: tD~~ ool.1fa- (i) any person where the disclosure is neces- (i) sary for the purposes of this Proclamation "IlU h'P'; tD1o~ ""7IjT"!"~ 1'}HfI Hl or any other fiscal law; hCP~ hA.'O~ hhLI\1. 011''' 'In.: (ii) the Auditor-General where the disclosure (ii) nth.., f"..f1mtD-1 " ,flCIj ~I\~""" is necessary for the performance of duties "OOtDtlJT h hLI\ 1. f1.11',}I 'P1jtD- entrusted to it by law. " "It ""CI (iii) the competent authority of the govern- (iii) ool.Jf "OO"'PtD'1'i ""~lrlro. ..,flC'} ""7 ment of another country with which h~.I.T h.Tf'kl hl\.l\-"f h1C'"f ;JC Ethiopia has entered into an agreement fl~1.1"ftD- h~~"T OOIPt.T h..,flfl for the avoidance of double taxation or 1\1\:ftD-'i1\.1\-"f ~1C'"f fl"P'AtIJ':""fi for the exchange of information, to the extent permitted under the agreement; (iv) Oih.., f"..f1mtD-'} " ,flCIj ~I\~"T (iv) the Ethics and Anti-Coumiption Com- "OOtDtlJT hhLI\1. c"1.1I''}I "P'''- mission where the disclosure is necessary ~""1CIj "01. oo-hlj 11~7i'}i for the performance of duties entrusted to (v) hlltJ 01\10 I\A""1"0 ""7Ij:ftD-~ ih.., it by law. hhL'D7. OO/o.T ..,1..:1'tD-'} "OOLO~ (v) a law enforcement agency not described fD7.1h"f"tD- ool.Jf 'h'}ltf1mtD- h10.~"f above where the Minister of Revenue D7.th-l:C 0"","Cj: c"1.;J-U1Iaa issues written authorization to make dis- closures necessary for the enforcement of t\) :~I\~";I':fa,.'} t\OOtDtlJT hhLI\'l 'hhhll''' f:l.h the laws under the agency's authority; or h'}f:'} f1tD- "1o""tD- f"71om:"c\- OOt.Jf~"f'} (b) information which does not identify a specific ""7Ij:ftD-iJD OOO'}"'P'T 10. P'to 1\10 ""'l.11 person to any person in the service of the State 'hlj "h;J-Th-f:hh tIP/o.T IPto"..fj= in a revenue or statistical department where ""A hoohmT hl"'~tD-~u such disclosure is n6cessary for the perfor- mance of the persoq's official duties. ~~. ...,e.L~f: :1'hh h"oof1f1f1f1 "7Ij'TtD-~ f1tD-OlltJ h'P~ OOIPI.T "'1oL~I:t\T :1'hh 54. Unauthorized VAT Collection Any person not authorized to collect tax under this m,e.9u 'h11.:1'hh f"'l.;J-1o 1\.1\ h4=1 ff10f10 tD1o~ Proclamation who collects or attempts to collect tax (or "00 f1f1f1f1 f".,hl. tD'}1:A f LOOO lI',:"i '1'4-"..t;=00 II''#- an amount the person describes as tax) commits an Ott:Cf: o.T f1.t.;J1'1' hflC 2if.tJ f"711h f1'}H-fl 00~1i51 offence and is liable on conviction to a fine of not less 'hlj' hs 'OOT 0"71,}h hlO 'OOT 0"7100 A '1' 'hP't.T than 50,000 Birr and to imprisonment for a term of not f,,+tlJAII less than (5) five years and not more than (10) ten years. 2l;' OOC~T tD1o~ "701.:1';J-T 55. Aiding or Abetting "71j':ftD-iJDf1tD- flltJ h'P~ Y:'};J1.~"f 'h1lttIJc\- fl.~i A person who aids, abets, incites, or conpsires with 10t.;J-;J-I '''''''''1' 1D1o~ OfUP'm.C f"..flOI. 'h,}~I1''' another person to commit a violation of this Proclamation 'h'}1.'P1 t;= tD- '1'4-"..t;=fll tJ1 h 'P~ f:'} ;J1.~"f OootIJh also commits a violation of this proclamation. That '1'4-.}. ,e.L,,07Aa: hlltJ Ol\f. f""HI.U~T'} fLOoo f1tD-i person may be subject to prosecution and, on conviction, to a fine and imprisonment, not in excess of the amount of '1'4-""~ 001l''#- OCj:CY:I1.T c"1.l.;J1'1'~C~;J-tD-'} tDf.fU TflfI~,}' fine or period of imprisonment provided for the offence "f1mOT '1'4-T h""tDf1"tD- f1'}UfI 'hlj' aided or abetted. f'hP'toT :"tlJT flAO"m. 01'}UfI 'hlj' 0'hP' to:;' f.~tlJAIl 56. Offences by Entities ~I' nf.'c~'''~' f"'l.LO~ 1'4-T ii. n'}Ooh h'}~;t [f""~"11tD- 'h1~""mO+ lI',:"i h'}f: 1) Subject to Sub-Article (3), where an entity commits f.tJ,},} h'P~ an offence, every person who is a manager of that Y:C~T OOD-M"~ '1'4-T fLOOO entity at that time is treated as having committed the 'h1~11''' '1'4.-1: O.,.LOOD l.tI. fY:C~-I: ~to offence and is liable to a penalty under this hP'h.I~ 'III''' "71j':ftD-" l1tD-. OY:C~-I: f"..LO Proclamation. 00tD-'} '1'4-T 'h1~LOOO """'1'C'I OlltJ h.p~ f-t-fJlt\ar If>trJT ""~}It7rt .ztf"}np'~:: ~.1ut.A ''.:It.)- .:I,j.ilJ~'1'C 0r 1~' ?ij"i.~r,~~r. (t).~?; +1 I~n~ '}.9". Federal Negarit Gazeta - No. 33 4thJuly, 2002- Page 1863 2) Subject to Sub-Article (3), where an entity commits ~. O'}CJ.{, h '}.,.;t (C) f+', "11CD- h ') 1.+lIlO.,. IfCf: cryci:t:CD-9u ':C~T OUIPl.T I\.hLA an offence by failing to pay an amount of tax, OIlU h'P~ fOl/. 1 f}CD-'} (lJf,9u h 'PJf. h,) 1.;1' )')(', fOl/.4'>1'l. CD-'} including an amount treated by this Proclamation as cryCj:fCD-'}~ i\,I\ tJtt:1 10. f.,.l. h,} 1.1f., though it were tax, every person who was manager of "'1.C'" 1'4.1: O"'LfJOUOT 1.H. (lJf,~ 1'4.1: h+LfJouOT that entity at that time or was a manager within 6 (six) 1.H. hi1+f:CJP O"O~T i1f:i1T (lJ&.T CD-i11'ff:C~1: months prior to the date of commission is jointly and rt.. h(}h.J'~: \",flC;. OSP...,'.h.r.'c~:'~ Ati ht\.I\(J}'I'Ia>- severally liable with that entity and that other person ;JC nh'}f;'1TCj O+CjlllA f..,-oC hi110.(lJ' f}i\P" to the Authority for the amount. AtlJ') i\0I/.~A1CD- ;f'tJi1 'hCj I\.f\o"f tJtt:1sP1' "'m1<t 3) Sub-Articles (1) and (2) do not apply where, f,lfCjf\o:: (a) the offence is committed without that person's c. O'}o.i1 h'}+;t (Ii) hCj (I) f+1.'111-T:- knowledge or consent; and U) 1'4.1: f + LfJOUCD- ..,i\ (U1- CD-:"(lJf,~ ",e i1cry '" (b) that person has exercised the degree of care, °7fH. hlf'1: i\)h'}~: '11~"f'} n1''},cJ>cf:f0l/.1f:. OCD-O+oo""f, diligence and skill that a reasonably prudent V-~;t- CD-i11'f'1'4-1:,} ou~fJ~ i\ouhl\hA f,(lJi1~ person would have exercised in comparable :fCPA +-of\o f0l/.1OD1: 1''},cJ>cf:sP"f'}:"'10.CD-'} circumstances to prevent the commission of the T;JT hCj fhlP&.C 1'0-0 f+CJPI\OT hC~jf offence. ",i\ofl- (lJi1p..f+11 h,}1.If'1: 4) In Sub-Articles (1)"and (2); "manager" means,. +~ '01/. hf,If.,.O""fU:: (a) in the case of a partnership, a partner or manager ~. i\'}o.i1 h'}.,.;t (Ii) hCj (ID hL'fJfU "P&. hi1h.1~" of the partnership or a person purporting to act o'MT U) f7iCtJCj cry"lOC,}OOl/.OUi\hT f7iCtJCjCD-cry"lOC in either of those capacities; hl1A (JJf,fU f"7"10~ P&' hr'1h.1~ (lJ,efU (b) in the case of a company, a director, manager, or hv-i\1: ~1\4.'1-f"f Oh')~ h'}1.OI/.IP&' IfCf officer of the company or a person purporting to fOl/.;t-f,: act in any of those capacities; and i\) irl1'}1'} OOl/.ODi\hT firl1,},eCD- fP&, out: (c) in the case of an association of persons, a P &. h r'1h.1~ m f,fU "7Cj:fCD-fU1\.1\j'f.fU (lJ,efU manager or a person purporting to act in that hh'1IlU ~1\~'1-f"f Oh')~ h'}1.OI/.IP&' IfCf capacity. f°?:J' y,: . 57. Offences by Receivers th) fosP"f'} "Iof1l.T OOl/.ODi\hT f"lof1l.1: P&. hi1h.1~ mf,fU 01lV- ~1\4.'1T h'}1.OI/.IP&' IfCf 1) A person who fails to comply with the requirements fOl/.;f'f,: of Article 36, Sub-Article (4) commits an offence "CD-:: and is liable on conviction to a fine of 5,000 Birr and to imprisonment for (1) one year. ~1' n+l.t'JQsP"f fOl/.~8fU 1'4-T 2) Where a person is convicted of an offence under ii' "7Cj:fCD-9U0(1)0Oh'}+;t @i '}o.i1 h'}.,.;t (~) 0+1.., 11CD- ODIPl.T "f,~/JfU f.,.l. h,}1.If": 1'4.+;;:'11: Sub-Article 1 (one) for failing to set aside an amount O~Cf; I1.T r't1.;J11' -oc ~if.u f1'}ti-o OD"'65j,hCj as required under Sub-Article (4) of Article 36, the Oli (h'},(-) 'ODT hP'&.T f,+tlJA:: court may, in addition to imposing a fine and prison "7Cj:fCD-fU (a(l)o Oh'}.,.;t @?; '}o.r'1 h'}.,.;t (~) sentence, order the convicted person to pay, to the I' ODIPl.T i\;t-tJl1 tJ~1 fOl/.CD-i\CD-')1'}H-o i\f,-f Authority, an amount not exceeding the amount 11i\"7l1+ODffiofUtJ'}!T o'}o.l1 h'}.,.;t (Ii) ODIPl.T which the person failed to set aside. 1'4-+~ IfCf f+11 h,} 1.1f": ~Cf: 11.1: h1'}H-oCj 58. Improper Tax Debit and Tax Credit Notes hp/"T OD+65j,CD-O+Q;),"7t i\f,-f 11\i1",oulllCD-'} f1'}H-o ODm'} 1\11i\P'AtlJ'" 10. h'}Jl!1.C.., 1\.1" 1) A registered person who fails to provide a tax credit f,"fl\ A 81 note or tax debit note as required by this j~' f;f'tJl1 .eoo.T hCj f;t-tJl1 tJt.JlT (a"p.."f') Ii\ODr'1l1lT Proclamation, commits an offenc~ and is liable on (1)0 OD IP l."" f;t-tJ l1 .eo 0. T mf,fU conviction, to a fine of 10,000 Birr and to imprison- l!' 0 If.U h cP~ 0+1. '111 f;t-tJl1 tJt.JlT (a",(-1A(a1ll f+ODH10 (a(l)o:1'4-+;;: ment for (1) one year. ODIf'" O~C,(- I1.T r'tl.;J11' O-oC Iif.u f1'}H-o 2) A person who provides a tax credit note or tax debit OD"'6Ii},hCj Oji(h'}f:) 'ODT hP&'T ,e+tlJA:: note otherwise than as provided for in this ~ . nil U h 'P~ \l'I", '1"1CD-CD-tJ.1. f;1' tJ i1 .eo0. T (lJf,~ Proclamation commits an offence and is liable on f ;f'tJ r'1tJt.Jl T f (am "7Cj:f(l)ofU (aCD-1'4-+;;: ou If.,. conviction, O~Cf: f1.T r't1.;J11'f (a) where the failure was made knowingly or u) 1'4-1:,} f ~fJODCD-If'} 1Ii\- mf,fU Ohl1~ 'fA+ recklessly, to a fine of 20,000 Birr to imprison- ~'1T flf" 'h,}1.If" 01lC fif.u f1')H-o OD+65j, ment for (3) three years; or hCj OC(Y'i1T) 'ODT hP&'Ti mf,fU (b) in any other case, toa fine 10,000 Birr and to i\) nl\.f\o"f v-~:"9'"f O-oC I if.u f1')H-o OU+65j, hCj nji (h'}f:) 'OUT hP&'T f,"'tlJA:: imprisonment for (1) one year. 1~' ii;(:sr~! ~1.&.A ~:M:" ;JfLlIJ~1'C -9r (akn +1 !ifU 't ,?8 Federal Negarit Gazeta - No. 33411>July, 2002- Page 1864 2i' f1'~"'~~" It,. O;JtLtr)h:"".. Itn"7(1)4tr):" 59. Publication of Names ji. f;J-h,," I)AP'Atr)" OIUJ h'P~ bh.,.,.k ~~!l~ 1) The Authority shall from time to time publish by f.,.1. '11.,.:"., fm"~A 1'~"'~ oouLO,. f.,.LI.1. notice in the Gazette a list of persons who have been 1):f1l)4(a9l~ It,. 1IC1IC Of1.tLlI)406A;J-ce :JtI.{I1~ convicted of offences under any of the Articles 48 to ;J-:""" ~., )lmtr) ,1.C;J A II 58. I' 0 tUJ h.,.,.;t ., o-It h.,.,.;t (Ii) ou IP I.:,. ;J-:""., 2) Every list published in terms of Sub-Article (1) shall f"tmtr)1I)4 1IC1IC'- specify - V) f 1:C~1:" mf," f..,A(a(l-" It,.. ~C; h1:&oit: (a) the name, address, and principal enterprise of A) I)AP'Atr)'" "'10. '1(1)4111\- f"7.'9".,OT") fm") the person; ~lr,,) lIClIC: (b) such particulars of the offence as the Authority hL'O" ~) ~~1: f.,.LoouOT") f"'~C Hou") m~9" may think fit; Hou'i~: (c) the tax period or tax periods in which the ou) "f,hLA f"'1.1I)41 "'~C oum"): offence occurred; IP) n.,.tn."7& ~,,)-\ht;:A f.,.m(a'lO:" "'~C itA (d) the amount or estimated amount of the tax f, tJ")"'11 evaded; and (e) the amount, if any, of the additional tax im- ht;:A hp'&O V'ltT posed. A tt A tt 1:") ;11.9I~

Section 13 ~. ;J-hlt 'AouhLA ":Jo1: Miscellaneous Provisions Ii' Ol1.tJ h").,.;t II)4lt1': ",,:Jo1:" O..,Ab mf,9" ..,Ab I)A(I"' OU")11: f.,.1.1.1 0.(1"")9" I)f,(I"")9": 0;"'" 60. Schemes for Obtaining Tax Benefits P'C,:,. II)4lt1' "'L'''7. lL1.l..., f"7f,~1A mf,9" 1) In this Article:- .,. L '''7. ~ ")-\(1"") f ;J-.,.1. 0. (1"")9" 1)f,(I"")9" It9"9" "scheme" includes an agreement, arrangement, 'IT"): "7ou;F:f:"'): '+Ah.-'S") ~"'I)T") mf,9" h,,)1: promise, or undertaking whether express or implied '1C AOUL09" oult"7"7T")~ ")-\0-9" 6:Jo1:: V"~ and whether or not enforceable, or intended to be "7:Jo1.11:fh.,1: 1:C1.T ,£1.:" mf,9" fh,,)1:,,) 1:C1.T enforceable, by legal proceedings, and any plan, h it~1:,,) f,tn.9" &oAI proposal, course of action, or course of conduct; and ";J-hlt ,AouhLA" "tax benefit" includes V) "7C;:fll)4iJo (a1l)4 lLht;:A f"7.11) (1)4") ;J-h It (a) a reduction in the liability of any person to pay ou.,. 'I It ") : tax; A) nh").,.;t 3'1i OUIPI.T h,,)1: ;J-hlt h~f, lL'1~ (b) an increase in the entitlement of a person to an f"7.11) (1)4")f;J-h It "7it it it m f,9" .,.ou" 11 f"7.1.1. amount of tax creditable under Article 21 or to a .., AT") ;J- h It "7 ,,1. ..,") : refund of tax; or ~) oPfC;:fIl)4")" 1\." ;J-hlt ,AouhLA 1:C1.T (c) any other avoidance or postponement of mf,9" f;J-hlt ht;:,") "7H..,fT"): liability for the payment of tax. f,tn.fO &oA:I 2) Notwithstanding anything in this Proclamation, if I. 011.tJ h cp~ Ol\.tt-:f h ").,.,:f f.,.1. '111(1)40. 'i C9" the Authority is satisfied that a scheme has been f;J-h,," I)AP'Atr)"): entered into or carried out where - V) "7c;:fIl)4" (a1l)4O.,.H.(.;111)4(\:Jo1: ;J-hlt "Aou (a) a person has obtained a tax benefit in connec- hLA f;FA OU(l""''')f.,.I.-'S' mf," tion with the scheme; .and A) f"'HI.;1(1)4"). 6:Jo1: f,H:" O"7.oul.,.CO:" 1.1i. (b) having regard to the substance of the scheme, it 6:Jo~ f"'HI.;J1I)4 06:Jo~ "''';J-.c. A(I"' (a1l)4mf,,. could be concluded that the person, or one of the persons, who entered into or carried out the , h.,.,,;J-.c.9I=i:' (a9l~ Ah,,)~ ;J-hlt ,AouhLIA 1':Jo,. A"7lt11":" ou(l"'" ") ~,,)-'SA'IOC h1:C1- Oou~mC ;J-hlt 'AouhLIA ou 'I ~ ") 1.(1"'1f ":Jo ~ ") scheme, did so for the sole or dominant purpose of enabling the person to obtain the tax benefit, 1':Jo,. '11"(1)4 ~C; 06:Jo~ "''';J-.c. f(l"'lI)4 the Authority may determine the liability of the "7c;:fIl)4" (a1l)4lLht;:A f""/.11)(1)4");J-h It ~ ")-\ person who has obtained the tax benefit and of ht;:A foum(a") mf,"I)AP'Atr)'" "'10. '1(1)4~tt- any other person related with the scheme as if . the scheme had not been entered into or carried O"7.1MO:" h\)'~,,) ;J-hlt I)AouhLA f"'1 1"(1)4")1'~" out, or in such manner as in the circumstances A"7It.,.I.:" mf," Aou"''1t f"tf the Authority considers appropriate for the It~A II)4UfkAoultm:" f,~"AIJ prevention or reduction of the tax benefit. 1K" iit$f36 ~A ~~~ ~n... .1'C« M n +, !itf2i ".,.. Federal Negarit Gazeta-- No. 334111July, 2002- Page 1865 ~i' f1'"-o MIf~ 61. Currency Conversion i' ,\fLUh"~ hL"" "''iT'''' f1'"-o IIDm1Oo(lt: 1) For purposes of this Proclamation, all amounts of IID1A. hAO+8I money are to be expressed in BiIT. 2) Where an amount is expressed in-a currency other I' f1'"0- IIDm1f+1A,fDe O-ot:lA.,", "'~If~I V) tJJ~h1e f"7.10- 6:"fP*, O"7.IIDAh+101\.+ than Birr, (a) in the case of imports, the amount shall be ""It1 f","~h h"~ 0+~~11fDefMlft. 1\1\.:" converted at the exchange rate as determined IIDIP~:" f11"0- IIDm1 ~tJJ(a'i1A1J under the customs legislation of Ethiopia; or 1\) 01\.A-"f "''iTfDe'' IJ.t.:I"fP"f f11"0- lIDm') (b) in all other cases, the amount shall be converted tJJ~-oe f"7.l\tJJmfDe. OfLU h"~ IIDIP~:" at the exchange rate that applies between the f .+h ta- 1\1\.:" 0"7. h'i tJJ10:" 1.n f"7.IP t-o:"') currency and theBirr at the time the amount is f"')lft "'lID') lIDIP~:" o",~~.., ~1f'i1A1J taken into account under this Proclamation. ~I' ,.111'1 "'J1~L''''1TfDe r+hAh~ 62. .Registriltion of Goods 6:"fP"f ""''iTtJJe98 ;,..., '1"111'1"'-'1.L''''1TfDe f :1""" 6:"fP"f1 Where any form of registration is-required under any law "'-'1.IID"..,-o ;)4\.t~+ A+(amfDe'1AP'AIIJ1 f'1Ao.:"~+ in respect of goods, no registering authority responsible h,. 1\tD-1' f"7.1.~"''1TtD-') tJJ~" m1.h1C f10- for such registration under such law shall effect such registration upon change of ownership or importation IIDIID1I10(1lA'1TtD- 6:"fP"f ,.111'1 ~')~~"'i\:" into Ethiopia of the registerable goods unless the person f"7.m~~ (atD-I appiying for registration produces to such registering 0) OfLUh'f'~ IIDIP~+I\.hLIA f"7.1'1tD-;t-hh m1.h1C authority: - 010-:" f"7.IID"10- 6:"fP"f I\~ f.,.hLI\ lIDlf).') (a) a Customs Declaration showing that tax which is m~,. 06:"fP"f I\~ I\.hLIA f"t1'1 :l"hhll\lID!i~,) payable under this Proclamation has been paid in f"t1"~ f"''I''~h -'1.hl\t-ta.M tJJ~"1\.1\ "7'iTaJe" respect of the import of the goods into Ethiopia, or a f-;."~h (a~~1 tJJ~" Customs docurpent showing that no tax is payable A) 6:"fP=ti"I+~0 f+IID"10 (atD-f.+hta- '11\P'1A1I)1 under the Proclamation in respect of such impor- .. O"t1mllJfDe c:e,. lIDIP~:" f(amtD- nfLU h":E- tation of the registerable goods in consequence of IIDIP~:" I\.hLIA f"t1'ltD-') :l"hh fhLi\ mf,,. which the registration is required; or (b) a declaration, in such form as the Authority may f"7.h~1A lIDlf).') f"t1~;J"''f' f,.hhe mt.+:"1 prescribe, issued by any registered person who tJJ~" supplied such goods in consequence of which the m) IIDIID1I10(1 II\'lTtD- h~e(l"""f m~" m1.h1C f10- registration is required, certifying that the tax 6:t'fP"f h;J'hta- ~, oPlf'iTaJe') f"tI~;J"'1' payable under this Proclamation has been, or will n:l"hta- '1AP'AIIJ1 f+(am f,.l\he m~+:" t}1\+~n be, paid by such person; or nh.,.+e oP1I;Jn.tD- '1AP'IAII)') ,.111'1 "'h'im') (c) a certificate issued by the Authority, to the effect fl\n.'H-1l that .the supply or import of the registerable goods ~r' fllDif;J1tl ~, ;11. was an exempt supply or exempt import. ,.. ~U h'f':E- h8'in:" +') n.t:" '1",:,. h~h:" mt.-f"f 63. Transitional Provision 1) A registered person wo, within 6 months prior to the np't. I\~ 'l1\tD- f1iI~'i hoh.-.f,1I ;t-hh h":E- coming into force of this proclamtion, has goods lIDIP~:r-;t-hl\ f.,.hLI\'1TtD- 6:t'~"f n~:( f"t1;. taxed as per the previous law at his disposal, ~hall be f"'oP"1n (lm- n1il~ .+hta- f"7hhL/lAtJ oPIP~:" entitled to a tax benefit under Article 21 of this Oh1+~ ~Ii f+IIDAh"'tD- f:l"hh "'+'i1i "'m:t'''t Proclamation; f,1f'i1A1J 2) The manner in which the credit granted under this I' nfLu h,)"'~ oPIPt.:" f"t~~1tD- "'''''i1i "'L'''t Article is to be applied shall be determined by f"tlf,) n:" h t.\:\') n"ttl\ :"C""f ,.tJe n.:" n "tmllJ Regulations to be issued by the Council of Ministers. 1.')11 f,m(a'i IAII 64. Directives and Regulations ;~§. f. ,)1I'i oPoPtl 1\1\"7tD-II):" The Council of Mi!1isten, shall issue regulations for the f"tth:"C'"f ,.tJe 0.:" I\fLU h'f':E- :"hhA'l h"'~=\-)" proper interpretation of this Proclamation or for the carrying out of any powers delegated f"tI"'~ m~" nfLu h'f':E- OtD-hlA'i f"'{lmtD-') ~ it under this 1\"7~ ~.., f"t1l\"f ~ 1.') (I"f') i Proclamation, and the Minister of Finance and Economic P' IA11)') .,..., 'l t.ce h,) "lo-" Development shall issue directives for the proper im- f1 ')"11 'i I\. it..."t IA",:" "tttt+~ AfLU plementation of this Proclamation. h":E- oPlAt},. "L~~" lIDoPtllmllJ~11 1Jr i1(~f~ lJ.~A. ~;J~"" :Jtl.1IJ'*'1'C tr c\k n +1 111121 ,.,.. Federal Negarit Gazeta - No. 334111July, 2002- Page 1866 ~~. "",ouifc 65. Repeal i. ~IJ h'P~ OP'to"~ h'Pt\OT 1."' 1.9"1:f1iI~'i 1) The Sales and Excise Tax Proclamation No. 68/93 . h.hl8~11:J-hlah'P~ 4l!C ~ftfit~ /'A'1.+if7it\/ (as amended) shall be rescinded as from the day on . which this Proclamation becomes of full force and +IPC!l.AII effect. I' 01i1~'i h.hl8~11 :J-hla h'P~ OUIP~T ouhLA 2) Tax payable under the Sales and Excise Tax f\ 111«&~IJ h'P~ OP' to "~~lah'Pt\OT .,., Y:~la Proclamation but unpaid until the day this IA+hLt\ f1il~ :J-hla 011.1(1)0h'P~ OUIP~T Proclamation comes into force shall continue to be 1ft 'A'JlII" ~1.~;JAII collected pursuant to said Proclamation. ~. fh'P:( +L'''t~T 66. Entry into Force ~U h'P~ h:J-'1"p' tlr .,., Iifj~ "9"'1.9"1: fO'i This Proclamationshall come into force as of the 15tday ~1I''iAIl of January, 2003. hJlla hOt] ()~ tl1; .,., Iifj~ ,.9". Done at Addis Ababa this 451day of July, 2002. "IC'" mA1.1.f"C1.la GIRMA WOLDE GIORGIS f1\.Tf"*' &..1..to"'e Jl'l"htof\lce tT1IA.h PRESIDENT OF THE FEDERAL ,. ~II.~'T DEMOCRATIC REPUBLIC OF ETlllOPIA {lCV1~ M9'" ",.,.OtJ' I:C~"" ;l-.,.oo aERHANENA SELAM PRINTING ENTERPRISE