Mongolia: are tax disputes resolved fairly and efficiently?

• 2024-04-22
• 145

 

Given that tax disputes have taken 3+ years to be finally resolved by the Supreme Court of Mongolia, it is hard to say that tax disputes are resolved efficiently.

On the other note, there are many cases where tax disputes have been resolved fairly in Mongolia.

More recent decisions show that common reasons for bringing tax disputes before the court are:

• Wrong application of laws (where tax laws have changed)
• Statutory limitation period and its application
• Calculation of unpaid taxes, fines, and penalties
• Accounting of revenues paid in goods and materials

A pretty surprising fact is that the administrative phase of dispute resolution (or the Tax  Dispute Resolution Board) has taken 2 years while the subsequent 3 courts took a little over one year.

Despite this fact, the Supreme Court of Mongolia appears useful in breaking down complicated tax claims so that this effort helps with better understanding the grounds of claims and most importantly the numbers in dispute, and the numbers accepted, altered, or rejected by the court.

It would be more helpful if the courts and tax dispute resolution boards presented the tax cases in a much more user-friendly manner. This can be done using a table instead of text, clear headings, and consistent terms for different but significant legal concepts.