Judgment No. CCZ 7/2014 5 Const. Application No. 41/2014 “INTERIM RELIEF GRANTED 1. Pending the hearing and finalization of Applicant’s appeal in the Fiscal Appeal Court, Applicant’s obligation to pay value added tax and income tax be and is hereby suspended. 2. Respondent be and is hereby ordered to forthwith provide written reasons for its decision to compel payment of value added tax and income tax pending Applicant’s appeal to the Fiscal Appeals Court.” Section 36 of the VAT Act provides: “36. Payment of Tax pending appeal The obligation to pay and the right to receive and recover any tax, additional tax, penalty or interest chargeable under this Act shall not, unless the Commissioner so directs, be suspended by any appeal or pending the decision of a court of law, but if any assessment is altered on appeal or in conformity with any such decision or a decision by the Commissioner to concede the appeal to the Fiscal Appeal Court or such court of law, a due adjustment shall be made, amounts paid in excess being refunded with interest at the prescribed rate (but subject to section forty-six) and calculated from the date proved to the satisfaction of the Commissioner to be the date on which such excess was received, and amounts short-paid recoverable with penalty and interest calculated as provided in subsection (1) of section thirty-nine.” The obligation to pay the amount of tax assessed to be due and payable is imposed by s 38 of the VAT Act. Section 69 of the Income Tax Act provides: “69. Payment of tax pending decision on objection and appeal. (1) The obligation to pay and the right to receive any tax chargeable under this Act shall not, unless the Commissioner otherwise directs and subject to such terms and conditions as he may impose, be suspended pending a decision on any objection or appeal which may be lodged in terms of this Act. (2) If any assessment or decision is altered on appeal, a due adjustment shall be made, for which purpose amounts paid in excess shall be refunded and amounts short paid shall be recoverable.”