Tax assessments

Tax assessments involve calculating taxable income and application of tax rates on the taxable

income to determine tax payable for the year and deduction of tax credit from tax payable for the
year

to determine tax payable on assessment.

Normally, there are five categories of assessments: self-assessment, jeopardy assessment and

adjusted assessment.

;ŝͿ Self- assessment

This occurs when taxpayers estimate their tax payable themselves or with the help of tax

consultants and file return on income as required i.e. not later than 6 months after the end of

each year of income.

;ŝŝͿ Provision assessment

When a taxpayer has furnished a statement of estimated tax payable he is automatically

deemed to have been provisionally assessed on the basis of estimates contained in such

statement.

;ŝŝŝͿ Best judgment assessment

If the commissioner is not satisfied that the return of income is correct and complete, he has

the power to estimate income of the tax payer to the best of his judgment and make an

assessment accordingly.

;ŝǀͿ Jeopardy assessment

Explain concept tax assessments and notice of assessment; identify documents required to

be maintained by Taxpayers and describe the “EFD” system, its benefits and the possible

revenue risks involved.

[Learning outcome d, e, and f]

This happens when the Commissioner General requires a person to file return on income by

the date specified in the notice disregarding the normal date of filing tax returns. The

Commissioner General may do this:

(a) when a person becomes bankrupt,

(b) when a business is wound-up or goes into liquidation,

(c) when a business is about to leave the United Republic indefinitely,

(d) when a business is otherwise about to cease activity in the United Republic;