PART NINE: ASSESSMENT OF INCOME, TAXATION
DECISIONS, CONTESTATIONS AND APPEALS

CHAPTER ONE: ASSESSMENT

Power to assess
145. (a) (1) When a person has delivered a return under section 131, the
return shall be deemed a determination of income by that person
(hereafter: self assessment), and the Assessing Officer shall
send him notice of the amount of tax due from him under the
return; a said notice shall be treated like a notice of assessment
under section 149.
(2) The Assessing Officer may, within three years after the end of the
tax year in which the return was delivered to him and, with the
Director's approval, within four years after the end of the said tax
year examine it and do one of the following: 207
(a) approve the self assessment;
(b) determine to the best of his judgment the amount of the
person's income, of the deductions, set-offs and
exemptions allowable from it under any statute, and the tax
to which he is liable, if he has reasonable grounds for
believing that the return is not correct; an assessment
under this subparagraph may be made according to an
agreement concluded with the assessee.
(2a) Within one year after the end of the period said in paragraph (2),
the Assessing Officer may at his initiative or on application by
the assessee correct any error made in the calculation of
deductions, credits or exemptions in an assessment under
paragraph (2)(b), if he is satisfied that the case is one of a
computational error.
(3) Notwithstanding the provisions of paragraph (1), the Assessing
Officer may within six months after receipt of the return that
constitutes a self assessment do as specified hereafter and the
return shall continue to be deemed a self assessment even after
the Assessing Officer did as said here:
(a) correct a computational error made in the return;
(b) apply the provisions of any statute applicable to the
assessee, in connection with the obligation to keep books
for any tax year or part thereof, if he did not keep them or
only kept them during part of the period during which he
was under obligation to keep them, or if he did not base his
return on his account books;
(c) apply the provisions of any statute applicable to the
assessee, after a final determination was made that his
books are not acceptable; in this context, "final
determination" a determination against which there is no
further right of objection or appeal.
(b) If a person did not deliver a return and the Assessing Officer believes
that that person must pay tax, then he may determine the amount of
that person's chargeable income to the best of his judgment and
assess him accordingly, but that assessment shall not affect any other
responsibility of that person for failing or neglecting to deliver a return.

Power to assess in special cases
145A. The Assessing Officer may determine to the best of his judgment the
chargeable income of an assessee who is the owner of a small business of a
category designated by the Minister of Finance and who kept his records as
required by the Director's directions under section 130, if the Assessing
Officer concludes that the assessee's income according to his records is not
reasonable, but the assessee's books shall not for that reason be deemed
unacceptable.

Power to assess diamond merchants
145A1.Without derogating from his other powers under this Ordinance, the
Assessing Officer may determine to the best of his judgment the amount
of chargeable income of an assessee who is a diamond merchant, within its
meaning in section 130A, and who kept his records as required by the
Director's directions under section 130, if the Assessing Officer concludes
that the diamond merchant's income according to his records is not
reasonable; however, before he makes an aforesaid assessment the 208
Assessing Officer shall inform the diamond merchant of his decision to
assess him as aforesaid, and he shall enable the diamond merchant to object
before the books acceptability committee on one of the following grounds:
(1) that the business results are reasonable;
(2) that the extent to which he used concessions from the Director's
directions, such as were prescribed by the Minister of Finance, did not
affect the business results materially.

Partial assessment in respect of tax planning that must be reported
145A2. (a) If, in a return under section 131, a person reported an act designated
under subsection (g) of the said section as tax planning that must be
reported, then the Assessing Officer may in addition to the provisions
of section 145 determine that person's income in connection with that
act by a partial assessment to the best of his judgment, while ignoring
the tax planning that must be reported, and he may also determine the
deductions, set offs and exemptions allowed against the income under
any statute, as well as the tax which that person must pay, on condition
that until that time he had not assessed him for that tax year under
section 145.
(b) An assessment under this section may be made by agreement with the
assessee.
(c) A partial assessment under this section shall for all intents and
purposes be treated like an assessment said in section 145(a), also for
the purposes of sections 147, 150, 152, 153 or 158A, but the partial
assessment shall not infringe the powers of the Assessing Officer or
the rights of the assessee in connection with the assessment of the rest
of the assessee's income according to the provisions of this Chapter.
(d) If in respect of the same tax year a partial assessment and an
assessment of all the assessee's income were made including an
assessment made by agreement, by order or by a judgment, then the
Assessing Officer shall determine how they affect each other and he
shall draw up the necessary adjustments.

Rejection of books because intakes were not entered or no cash register
was kept
145B. (a) (1) If an assessee records his intakes on a cash register tape, on
receipt vouchers, on invoices, in a daily receipts diary or by any
other documentation that he must keep under the Director's
directions by virtue of section 130, and if he did not record in
them a intake which he should have recorded in accordance with
those directions, then his books shall be deemed unacceptable,
unless the Assessing Officer is satisfied that there was
reasonable cause for the default; if a person disagrees with a
decision made under this paragraph, then within thirty days after
he received the decision he may request the Assessing Officer,
as defined in section 130(k)(2), to reconsider and change it; if the
Assessing Officer rejects the request to change all or part of the
decision, then his decision may be appealed, as if it were an
Order under section 152(b), provided that the date for lodging the
appeal be within sixty days after his decision was handed down;
(2) (a) If an assessee does not record an intake which he must
record as said in paragraph (1) twice or more often in one
tax year or in twelve consecutive months in two tax years,
including at least once after the Assessing Officer 209
cautioned him in writing, then his books shall also be
assumed to be unacceptable in the two tax years that
preceded the year in which he twice did not record an
intake as aforesaid, or also in the tax year that preceded
the first year within the twelve months in which he twice did
not record an intake as aforesaid, even if his returns were
accepted and assessments were made according to them,
unless the Assessing Officer was convinced that there was
sufficient reason for the failure to record; an amended
assessment for the said tax years may be made by the
Assessing Officer in consequence of the failure to record
intakes, and it shall be treated like an Order under section
152(b);
(b) a decision by the Assessing Officer not to accept the
reason for not recording as sufficient may be appealed, as
if it were an Order under section 152(b), on condition that
the date of submitting the appeal be within 60 days after
the decision was handed down, or together with the appeal
against assessments made in consequence of the failure to
record the receipts; if the Court did not allow the appeal
against the said decision, but did allow in full the appeal
against the assessments in respect of the Assessing
Officer's decision about the failure to record intakes, then
the said presumption of unacceptability in respect of years
preceding the year in which the failure to record was
discovered shall not apply.
(b) If an assessee, being required by the Director's directions under section
130 to keep a cash register tape, does not do so, then his books shall
be deemed unacceptable.
(c) (1) If an institution, within its meaning under section 130(a)(4), did
not record an intake which it must record under the Director's
instructions by virtue of section 130(a)(4) two or more times within
twelve consecutive months, then its books shall be deemed
unacceptable, unless the Director is convinced that there was
sufficient reason for the failure to record;
(2) a decision by the Director not to accept the reason for not
recording as sufficient may be appealed within 60 days after the
day on which the institution was notified thereof, as if it were an
Order under section 152(b).
(d) If the Assessing Officer concludes that an intake in an amount in
excess of the amount set by the Minister of Finance was not recorded
as said in this section, then he may seize and confiscate half of the
amount received and not recorded as aforesaid, unless he is satisfied
that there was sufficient reason for not recording it; the decision of the
Assessing Officer may be appealed, as if it were an Order under
section 152(b), on condition that the time for submitting the appeal be
within 60 days after the decision was handed down; for purposes of this
subsection: "Assessing Officer" other than a Deputy Assessing
Officer, an Assistant Assessing Officer or a Chief Collector.

Books acceptability committees
146. (a) (1) The Minister of Finance shall, in consultation with the Minister of
Justice, appoint persons of whom the Director shall form books
acceptability committees. 210
(2) Each aforesaid committee shall consist of three members; its
chairman shall be a public personality, expert in accountancy,
and the two other members shall be auditors of whom only one is
an employee of the State or of another governmental institution;
in an objection by a diamond merchant, under section 145A1, a
representative of diamond merchants, appointed by the Minister
of Finance upon recommendation by the industry's
representatives, shall participate only in the deliberations;
(3) notice of the said appointments shall be published in Reshumot.
(b) In an objection against a decision by the Assessing Officer under
section 130(c) or against a decision by the Director under section 147
in connection with the acceptability of account books, or against a
decision by the Assessing Officer under section 145A1, they shall have
to justify their decision.
(c) When it hears an objection against a decision of the Director under
section 130(a)(2), the committee may confirm or set aside the Director's
decision or make a different decision, as it sees fit.
(d) When it hears an objection against a decision by the Assessing Officer
under section 130(c) or against a decision by the Director under section
147 in connection with the acceptability of account books, the
committee may do one of the following:
(1) confirm the Assessing Officer's decision; in this case it may
declare that the books are unacceptable under aggravating
circumstances;
(2) set aside the Assessing Officer's decision and direct him to
accept the books, either because they contain no defect or
deviation from the Director's directions, or because the defects
and deviations they contain are immaterial to the determination of
the assessee's income.
(d1) When the committee hears an objection under section 145A1, it may
decide that the Assessing Officer is not allowed to use his authority
under the said section.
(e) A committee decision on an objection under section 130(a)(2), (d) or
(h), or under section 145A1 shall be final, but it may refer a legal
question to the District Court for its opinion.
(f) The committee is competent to gather evidence for the exercise of its
powers under this Ordinance.
(g) The committee may award the costs of an objection, including the fee
of the assessee's representative and traveling expenses and loss of
working time allowance of witnesses.
(h) The Minister of Justice may make regulations on
(1) procedures for convening objection committees;
(2) Law procedure in the committee;
(3) fees payable in respect of proceedings before the committee;
(4) remuneration of committee members.

Director's power of review and revision
147. (a) (1) Within the period that ends one year after the periods prescribed
in sections 145(a) or 152(c), whichever is later, or within six years
after the day on which an assessment under section 145(b) was
made for the assessee, as the case may be, the Director may, at
his own initiative or on the assessee's application ask for the
record of any proceeding taken by an Assessing Officer under
this Ordinance, and having received the record he may make any 211
inquiry he may deem appropriate or cause a said inquiry to be
made, and he may subject to the provisions of this Ordinance
make on this matter any Order that he deems appropriate.
(2) If the assessee was convicted of an offense under sections
216(8), 216B, 217 to 220 or under sections 117(b)(1), or (3) to
(8), 117(b2) or 117A of the Value Added Tax Law, or if monetary
composition was imposed on him under section 221 or under
section 121 of the Value Added Tax Law, then the Director may
act as said in paragraph (1) within the period that ends one year
after the day of the conviction or of the payment of the
composition, as the case may be, or until the end of the period
set in paragraph (1), whichever is the later.
(3) If a person delivered a return under section 145(a)(1) and the
Assessing Officer did not use his powers under section 145(a)(2),
then the Director may act as said in this section only if the
assessee was convicted of an offense under sections 216(8),
216B or 217 to 220, or if monetary composition was imposed on
him under section 221.
(b) An Order under subsection (a) shall be made by the Director or by a
person so authorized by him, and an assessment made in
consequence of an Order made as aforesaid shall, for purposes of an
appeal, be treated like the Order.
(c) An Order under subsection (a), which increases the assessment, shall
be made only after the assessee was given a reasonable opportunity to
present his arguments.
(d) An Order under subsection (a), which increases the assessment, shall
for purposes of an appeal be treated like an Order under section
152(b).
(e) If an Order under subsection (a), which reduces an assessment, was
made before the time for the submission of an appeal against the
assessment expired, but before an appeal was submitted, then the
assessee shall no longer have the right to appeal against the
assessment, but he may appeal against the Order as if it were an Order
under section 152(b).
(f) If an Order was made under subsection (a) after appeal against an
assessment was brought, but before appeal proceedings were
concluded, then the appeal shall be heard as if it were an appeal
against the Order.

Lists of assessees and notices of assessment
148. (a) The Assessing Officer shall, as soon as possible, prepare lists of
persons assessed to tax.
(b) Such lists (hereafter: assessment lists) shall include the names and
addresses of the persons assessed to tax, the amount of chargeable
income of each of them, the amount of tax that he pays, and other
prescribed particulars.
(c) If complete copies of all notices of assessment and of all notices that
amend assessments are filed in the office of the Assessing Officer,
then they shall constitute assessment lists for purposes of this
Ordinance.

Notice of an assessment to the assessee
149. The Assessing Officer shall cause each person, whose name appears on the
assessment list and who was assessed under this Ordinance, to be served 212
in person or by registered mail a notice sent to him at his regular place of
residence or place of business, in which shall be specified the amount of his
chargeable income, the amount of tax payable by him and his rights under
section 150 or section 153, as the case may be.




CHAPTER TWO: OBJECTION AND APPEAL

Right of objection before Assessing Officer
150. (a) If a person disputes the assessment, then he may apply to the
Assessing Officer by a written notice of objection that he review and
change the assessment; a said application shall state precisely the
grounds for the objection to the assessment and shall be submitted
within 30 days after the day on which the notice of assessment was
served; however, if it was proven to the Assessing Officer's satisfaction
that the person who disputes the assessment was prevented from
submitting the application within that period because of his absence
from Israel, sickness or any other reasonable cause, then he may
extend the period, for as long as appears reasonable under the
circumstances.
(b) If an assessee did not submit a return in respect of a certain tax year
and an assessment was made for him for that year under section
145(b), then only a return submitted by him for that year shall be
deemed an objection, unless it was proven to the Assessing Officer's
satisfaction that the assessee was not obligated to submit a return or
that it was not possible to submit it.

Hearing of objection
150A. Whoever made the assessment shall not hear an objection to it.

Powers of the Assessing Officer in connection with objections
151. When an Assessing Officer receives the notice of objection said in section
150, then he may demand from the objector that he deliver all particulars that
the Assessing Officer deems necessary in respect of the assessee's income
and that he produce all books or other documents in his custody or
possession that relate to that income, and he may summon any person whom
he thinks able to give evidence on the assessment to appear before him, and
he may interrogate him under oath or not under oath; however, a clerk, agent,
or employee of the assessee or any other person employed in his affairs on
the basis of personal trust shall be interrogated only at the assessee's
demand; this section shall not derogate from any power of investigation under
any other statute.

Agreement or decision on an objection
152. (a) If the assessed person who objected to an assessment made for him
reaches an agreement with the Assessing Officer on the amount at
which he is to be assessed, then the assessment shall be amended
accordingly and notice of the tax he must pay shall be served on the
assessee.
(b) If no agreement is reached, then the Assessing Officer shall determine
the tax by written Order, and in it he may confirm, increase or reduce
the assessment. 213
(c) If, within three years after the year in which the return under section 131
was submitted, and with the Director's approval within four years
after the end of the said tax year, or within one year after the objection
was submitted, whichever is the latest, no agreement was reached as
said in subsection (a), and if the Assessing Officer did not exercise his
powers under subsection (b), then the objection shall be deemed to
have been allowed; however, if the objection was submitted against an
assessment made under section 145(b), then it shall be deemed to
have been allowed only if the Assessing Officer does not use his
powers said in this section within four years after the end of the tax year
in which it was submitted and with the Director's approval within five
years after the end of the said tax year.

Right of appeal
153. (a) Any person who deems himself injured by a decision of the Assessing
Officer under section 152(b) may appeal before the District Court in
whose area of jurisdiction the Assessing Officer acted.
(b) The appeal shall be submitted and heard in accordance with the
provisions of the Ordinance and of procedural regulations made
thereunder, and the Assessing Officer shall be the respondent to the
appeal.

Court of Appeal
154. (a) Appeals under section 153 shall be heard by one or more judges, as
the President of the District Court may prescribe, either generally or for
purposes of a certain appeal.
(b) The Court to which an appeal was submitted may, on the appellant's
application, direct that the appeal or a certain stage of proceedings in it
be heard at the venue of another District Court.
(c) Every appeal to the District Court under this Chapter shall be heard in
camera, if the Court did not direct otherwise on the appellant's
application.

Burden of Proof
155. The appellant shall bear the burden of proving that the assessment is
excessive; however, if the appellant kept acceptable books or, in the case of
an appeal under section 130(h), if the account books were audited by an
auditor and his opinion on the financial reports based thereon does not
include any reservation, or a reservation which in the Court's opinion is not
relevant to the question of the books' acceptability, then the Assessing Officer
or the Director, as the case may be, shall have to justify his decision.

Power of Court of Appeal
156. The Court shall confirm, reduce, increase or annul the assessment or rule
otherwise on the appeal, as it deems proper, and notice of the chargeable
income and of the amount of tax to be paid by the appellant according to the
Court's decision shall be served on both parties.

Appeal to Supreme Court
157. A decision of the District Court under section 156 may be appealed to the
Supreme Court as Court of Civil Appeals.

Procedural regulations on appeals
158. The Minister of Justice may make procedural regulations on any matter 214
connected to the lodging and hearing of appeals under sections 153 to 157,
including the payment of Court fees, the provision of collateral, making a
deposit with the Court and the presentation of evidence.




CHAPTER TWO "A": HEARING ARGUMENTS ABOUT ASSESSMENTS
BASED ON THE ASSESSING OFFICER'S JUDGMENT

Hearing arguments and presenting reasons
158A. (a) An assessment according to the best judgment under section 145, and
an Order under section 152 shall not be made without the assessee
having been given a reasonable opportunity to present his arguments.
(b) In a notice of assessment or in an Order said in subsection (a) the
Assessing Officer shall specify in addition to the reasons for not
accepting the return or the contestation also the manner in which the
assessment was made.
(c) The provisions of subsections (a) and (b) shall not apply, if the
assessee did not submit a return as said in sections 131, 135, 161,
166, 171, or 181B.



CHAPTER TWO "B": TAX DECISIONS

Definitions
158B. In this Chapter
"the tax laws" each of the following:
(1) this Ordinance;
(2) the Value Added Tax Law;
(3) the Real Estate Taxation Law;
(4) the Inflationary Adjustments Law;
(5) the Encouragement of Capital Investments Law;
(6) the Encouragement of Capital Investments in Agriculture Law 5741-
1980;
(7) the Encouragement of Industry (Taxes) Law 5729-1968;
(8) every provision on tax in or under a Law, which relates to one or more
of the enactments enumerated in paragraphs (1) to (7).
"tax decision" a decision about any aspect of an applicant's tax liability,
about the resulting tax or about the implications of an act he performed for his
tax liability, his income, profit, expense or loss;
"tax decision by agreement" a tax decision made by way of agreement
with the applicant;
"applicant" the person who requested that the Director make a tax decision
under the provisions of this Chapter;
"tax" a tax imposed under one of the tax laws;
"act" includes transaction and sale;
"profit" includes land appreciation.

Authority in respect of tax decisions
158C. (a) The Director may give a tax decision at an applicant's application, and
he may also give a tax decision by agreement.
(b) When an application for a tax decision has been made, the Director 215
may make giving the decision conditional on another person being
joined as applicant, and he may also refuse to give a tax decision or
decide that the answer to the application be given by an Assessing
Officer otherwise than by way of a tax decision.
(c) A decision under subsection (a) may be limited in time, subject to other
limitations or conditional, as shall be prescribed in it.
(d) A decision under subsection (a) shall only be made after the applicant
was given a reasonable opportunity to present his arguments.
(e) There shall be no appeal against a tax decision by agreement; a tax
decision not by agreement may be appealed as part of an objection or
appeal against an assessment.

Application for a tax decision
158D. (a) An application for a tax decision other than a application about tax
under the Value Added Tax Law or under the Real Estate Taxation Law
may be submitted before or after the act is performed, on condition
that it is submitted before the time set in section 132 or 133 for
submitting a return under section 131, in which the act, income, profit,
expense or loss that are the subject of the application have been taken
into account.
(b) An application for a tax decision about tax under the Value Added Tax
Law or under the Real Estate Taxation Law shall be submitted before
the act that is the subject of the application is performed.
(c) The application shall include all the substantive facts and particulars
relevant to it, and all the documents, certifications, opinions,
declarations, valuations, contracts and if contracts have not yet been
signed, then their drafts shall be attached to it, together with every
other substantive particular, as the Director prescribed, and certification
that the fee prescribed under section 158E has been paid shall be
attached.
(d) The Director may demand every particular or document he deems
necessary for his decision on the application.
(e) If the name and ID number of the applicant were not stated in the
application, then those particulars shall be provided later, and no tax
decision shall be given before they have been provided.
(f) An applicant must not withdraw his application before a decision is
given, except with the Director's consent.
(g) If other provisions on applications for tax decisions by the Director are
prescribed in the tax laws, then the provisions of this Chapter shall
apply, mutatis mutandis, as far as they do not contradict the other
provisions.

Application fee
158E. The Minister of Finance may with approval by the Knesset Finance
Committee set a fee for an application for a tax decision, either as an amount
or as a graduated percentage in relation to the value of the transaction, to the
applicant's income or to some other criterion.

Additional provisions
158F. (a) When the Director has made a tax decision, he shall not have the right
to withdraw it, unless he finds that one of the particulars or one of the
documents necessary for the decision was not submitted to him, or that
the circumstances relevant to the decision have changed, or that he
was given a false, erroneous or misleading particular. 216
(b) If the Director made a tax decision by agreement, then the applicant
shall comply with the conditions and provisions prescribed in it, unless
the act that is the subject of his application was not performed, or the
income or the expense, in respect of which the application was
submitted, was not received or not incurred.
(c) Notwithstanding the provisions of the tax laws, the Director may publish
a condensed version of tax decisions he made in the manner and
formulation he determined, also if the applicant did not agree thereto;
the published condensation of a decision shall not include the
applicant's name and ID number.
(d) The Director may make rules on tax decisions and on the
circumstances, under which a decision shall not be given.



CHAPTER THREE: ERRORS AND TAX REFUNDS

Defects and errors that do not invalidate
159. (a) An assessment, payment Order or any other proceeding that appears
to have been made according to the provisions of this Ordinance shall
not be canceled or deemed fundamentally void or voidable because of
an error of form, and it shall not be affected by an error, defect or
omission in it, if it substantially and in effect conforms to the provisions
of this Ordinance or of any Ordinance that amends it, or to their intent
and meaning, and if the person assessed or to be assessed or the
person to be affected is designated in it clearly or in commonly
understood terms.
(b) An assessment shall not be impeached or affected because of a
mistake in it in the name or surname of the person liable to tax, or in the
description of any income, or in the amount of tax charged, or because
of any difference between the assessment and the notice thereof, on
condition that the assessment notice was duly served on the person to
be charged to tax and that it includes in substance and in effect the
particulars on which the assessment was made.

Refund of excess tax in consequence of return
159A. (a) In this section: "linkage differentials and interest" an addition to the
amount in question, equal to the said amount multiplied by the rate of
increase of the consumer price index during the period in question, plus
4% annual interest on the amount in question after the said linkage
differentials were added to it, or at another rate set by the Minister of
Finance with approval by the Knesset Finance Committee.
(b) If a person paid tax for a particular tax year, whether by way of
deduction or in any other manner, in excess of the amount to which he
is liable according to a return submitted under section 131, that return
being based on account books or if he is not required to keep
account books on appropriate documents, then the excess shall be
refunded to him within 90 days after the day on which he submitted the
return or on July 31 of the tax year following the tax year in respect of
which the return was submitted, whichever is later, unless his account
books were found unacceptable in the last tax year, in respect of which
an assessment was made for him, and he does not prove to the
Assessing Officer's satisfaction that the grounds for the books'
unacceptability did not exist in the year in respect of which the refund is 217
claimed.
(b1) If a person was under obligation to submit a return under section 131 or
under section 135 before the time for the refund of excess tax under
subsection (b) (hereafter: tax refund date) and if he did not submit it by
the tax refund date, then the Director may delay the refund for a period
of not more than 90 days after the said returns have been submitted.
(c) The refund of an excess during the period from the end of the tax year
or the day of payment, whichever is later, until the date of the refund
shall be paid with the addition of linkage differentials and interest; in the
case of a person with a special assessment period, the end of the
special assessment period shall, for this purpose, be substituted for the
end of the tax year.
(d) If amounts were refunded to an assessee under this section and it
turned out that they were not due to him, then those amounts
exclusive of linkage differentials and interest shall be deemed a tax
debt due from him from the end of the tax year to which relates the
return, on the basis of which they were refunded.

Refund of excess payment in consequence of assessment
160. (a) If it is proved to the Assessing Officer's satisfaction that a person paid
tax for a tax year by deduction or otherwise in excess of the amount
to which he is liable and if the return for that year was submitted not
later than the end of six years after that year, then that person shall be
entitled to have the excess refunded to him within one year after the
day on which the assessment that established the excess amount was
made, or within two years after the end of the tax year in which the tax
was paid, whichever is later, with the addition of linkage differentials
and interest within their meaning in section 159A(a) from the end of the
tax year in respect of which the return was submitted, or from the date
of payment, whichever was later, until the day of the refund.
(b) No refund shall be paid to any person in respect of a tax year for which
he did not deliver a return or neglected to deliver it, or for which he was
assessed in an amount that exceeds the amount in his return and for
which he received notice of assessment made for him in that year,
unless he proved to the Assessing Officer's satisfaction that the failure
or the neglect to deliver a true and correct return did not stem from any
fraud or willful act or omission; this provision does not apply to sums to
be refunded after an objection or appeal.
(c) Any person who deems himself injured by the Assessing Officer's
decision on the amount to be repaid under this section has the same
right to appeal against the decision, as he would have if he deemed
himself injured by an assessment made on him.

Delaying a tax refund during an assessment procedure
160A. (a) Notwithstanding the provisions of sections 159A or 160, the Assessing
Officer may delay the refund of tax that was paid in excess of the
amount the assessee owes according to a return or assessment, as
said in those sections, up to half the aforesaid amount that is due to the
assessee, or up to the amount in dispute, whichever is lower, if the
Assessing Officer ordered the return to be examined.
(b) The delay of a tax refund said in subsection (a) shall apply up to 90
days after the return was received; however, if before the said 90 days
elapsed the Assessing Officer determined the assessment to the best
of his ability, as said in Chapter One of Part Nine, then he may delay 218
the refund of up to half the amount of tax he determined in the said
assessment for an additional ninety days, and if an objection under
section 150 was submitted for an additional period that shall not
exceed 180 additional days after submission of the objection.
(c) If, within 180 days after the date of the objection, a decision on the
objection is handed down under section 152, then the Assessing
Officer may delay the tax refund up to the amount of the tax set in the
said assessment, until the date on which it becomes possible to collect
the tax debt under the assessment he made under the Taxes
(Collection) Ordinance, unless the Court before which the appeal under
sections 154 or 158 was brought decides otherwise.