Tax Reliefs Negotiation

Tax is a compulsory contribution to the support of government that is levied on persons, property, income, commodities, transactions, and so on, now at a fixed rate most proportionate to the amount on which the contribution is levied. It is a compulsory exaction of money by a public authority for public purposes, or taxation is raising money for the purpose of government by means of contribution from individual persons.

Tax relief is any program or incentive that reduces the amount of tax owed by an individual or business entity, such as personal reliefs under the national health insurance scheme, life insurance premium, national pension scheme, gratitudes, and reimbursement to employee for expenses incurred in the performance of his duties. Therefore, tax relief negotiation is working out agreements for taxes owed and clearing up mistakes made by the taxing body, which in most cases is a herculean task for the taxpayer to proof that the taxing authority made a mistake, because they are always standing on a very high pedestal.

The taxing authority negotiates from the standpoint of right and the taxpayer is wrong. Thus, tax relief negotiation is about finding a point of reconciliation between taxpayer and the taxing authority. Citizens vying for public offices are perennially subjected to the agony of negotiating with taxing authority on areas of tax reliefs especially for those that are civil/public servants.


Nature of Tax Dispute

These disputes could arise from adjustments in taxable profits resulting in increased tax liabilities; double taxation where adjusted profits have been taxed in other jurisdictions; different interpretation of provisions of the regulations etc. as it can be seen, potential areas of conflict are not exhaustive.