Understanding the Problem: When the RSL Revises Your Tax
It’s not uncommon for businesses in Lesotho to receive a notice from the Revenue Services Lesotho (RSL) advising that a tax assessment has been amended.
Sometimes these revisions come after an audit; other times, they stem from system recalculations or missing returns.
Whatever the cause, an amended assessment can be financially and reputationally damaging and silence is never the solution.
The law gives you a clear right to object, but how that objection is handled can determine whether your business successfully overturns the RSL’s decision or ends up paying more than it should.
What Is a Tax Objection?
A tax objection is a formal written challenge against an amended assessment issued by the RSL. It’s the taxpayer’s first opportunity to tell their side of the story, backed by law, facts, and evidence.
According to Lesotho’s tax legislation, an objection must:
- Be in writing and lodged within the statutory time limit (usually 30 days from the assessment date);
- Clearly identify the grounds of dispute, both legal and factual;
- Provide a local address within five kilometres of the RSL Head Office in Maseru for service of notices; and
- Be delivered to the Commissioner-General at the address appearing on the assessment.
Once submitted, the RSL may hold an internal hearing and will eventually issue a written Objection Decision either upholding or varying the assessment.
Why Your Objection Is the Cornerstone of Your Case
Many taxpayers underestimate the objection process, viewing it as an administrative step before “the real fight” begins at the Revenue Appeals Tribunal.
In truth, the objection stage is the real fight.
The Revenue Appeals Tribunal Rules, 2005 restrict appeals to the same grounds raised in the objection unless the Tribunal grants special permission to add new ones. That means any argument you fail to include now may be lost forever or cost you extra time and money to revive later.
A properly framed objection can introduce powerful defences such as prescription (time-barred assessments) or procedural irregularities that reduce or even cancel the tax claimed. A vague or incomplete objection, however, may close those doors permanently.
The Tribunal: A Second Chance — With Limits
The Revenue Appeals Tribunal acts as an independent body that reviews the Commissioner-General’s decisions. It functions much like a specialised court, following strict procedures and deadlines.
While the Tribunal can confirm, amend, or set aside an assessment, its review is largely confined to what was argued earlier at objection level.
If a taxpayer neglected to raise an important issue during the objection, the Tribunal will generally not entertain it unless permission is granted. A process that can be technical and uncertain.
This structure underscores a simple truth: you cannot fix a weak objection at the appeal stage. Success before the Tribunal depends on the strength and completeness of the objection filed with the RSL.
Best Practices for Businesses Facing an Amended Assessment
- Act fast! The clock starts ticking the moment an amended assessment is issued.
- Seek legal or tax expertise early. Drafting a strong objection requires precise reference to legislation and supporting documentation.
- Be comprehensive. Include every factual and legal basis for dispute, even those that seem minor.
- Maintain proper records. Retain correspondence, invoices, and reconciliations; they’ll form your evidence later.
- Prepare for escalation – Assume your objection could one day form part of a Tribunal record and write accordingly.
- Looking Ahead: Building a Culture of Tax Accountability
Lesotho’s business community is growing increasingly aware of the importance of due process in tax administration. While the RSL’s role in enforcing compliance is crucial, taxpayers also have the right to fair and lawful treatment.
A clear, well-reasoned objection shows professionalism, respect for the system, and a commitment to transparency. All essential ingredients for sustainable tax governance.
When handled strategically, an objection is more than a protest: it is an exercise in defending your rights, protecting your cash flow, and shaping a compliant corporate reputation.
Final Thoughts: Don’t Let Deadlines Decide Your Case
An amended tax assessment can feel intimidating, but it doesn’t have to be final.
With timely action, sound legal advice, and a complete record of your position, you can ensure your business is treated fairly and lawfully under Lesotho’s tax regime.
At Mayet & Associates Attorneys, we assist companies and entrepreneurs in preparing tax objections, negotiating with the RSL, and managing appeals before the Revenue Appeals Tribunal. Our goal is simple: protect your business before penalties, interest, or missed opportunities take hold.