Litigation Procedures in Tax Disputes

Abstract

Tax justice and fiscal policies serve as gateways to investment and its primary incentives. The Palestinian economic system faces considerable challenges, not least in tax legislation, exacerbated by frequent political shifts, changing legal regimes, and the presence of multiple operative legal systems. This study aims to elucidate the litigation procedures in place before the tax courts in Palestine to foster tax justice. This research encompasses two sections: the first section provides a conceptual introduction to tax litigation procedures in Palestine, while the second section explores the Income Tax Appeal Court and the protocols observed therein. Through this research, several significant findings have been reached. The foremost finding is that the Income Tax Appeal Court is the authorized entity to preside over and resolve income tax disputes. Furthermore, it was found that only three types of decisions can be contested in court. To further promote tax justice, the study proposes several recommendations. Principal among these are the introduction of a three-tier litigation system for tax disputes, comprising initiation, appeal, and cassation stages. It also advocates for the explicit inclusion of the principle of freedom of evidence in such cases and calls for a revision of the Income Tax Law to address the issues identified by the court. Additionally, the legislative text should mandate a clear mechanism for the formation of the Objections Committee, recognizing it as a court of first instance.