1.What is Public Circular?
The document that is issued by the Inland Revenue Department in order to bring about uniformity in the implementation of the Income Tax Act and simplify tax administration and give guidelines to the officers of the department as well as the people affected by the Act is known as Public Circular. Such Public Circular is accompanied by explanations on the provisions made by the Income Tax Act.
2. What is the legal stand of the Public Circular? Can the public circular override the Act and Rule?
As it is issued along the explanation on the provisions of the Income Tax Act, it has legal authority. It shall prevail until the Department of Inland Revenue itself repeals and until court make any provision otherwise.
Such Public Circular is issued under the Income Tax Act, and Income Tax Rules and issued as per the authority given by the Act and Rule. Thus, the public circular cannot override the provisions of Act and Rule.
3. Are the tax officers bound by the public circular issued by the Inland Revenue Department?
The tax officers are bound to follow the public circulars until they are repealed by the department. It is the departmental legal explanation circular.
4. What can be done if an individual is not satisfied with the contents of the public circular? Is the taxpayer is bound to accept the contents of the public circular?
An individual may seek legal remedy if he/she is not satisfied with the contents of the public circulars. Until the decision has been made through legal remedy, the taxpayer is bound to follow the public circular.
5. Is pubic circular published in Nepal Gazette or Gorkhapatra? If not, where would it be available?
The public circulars are not published in Nepal Gazette or Gorkhapatra. It would be available in the website and circular archive of the Inland Revenue Department and other related organizations. The public circulars are regularly published in its circular archive.