- 10 Marks
Question
Explain the following as used in tax administration:
i) Self-Assessment
ii) Pre-emptive Assessment
iii) Administrative Assessment
iv) Tax Audit Assessment
(10 marks)
Answer
i) Self-Assessment:
- This is when taxpayers calculate their own tax liabilities and pay taxes based on their estimates. Taxpayers are responsible for filing tax returns and making payments in compliance with the tax laws.
(2.5 marks)
ii) Pre-emptive Assessment:
- This occurs when the Commissioner-General makes an early assessment of tax payable, usually when revenue is at risk. It may be issued when the taxpayer is about to leave the country, cease business activities, or commit a tax offense.
(2.5 marks)
iii) Administrative Assessment:
- This assessment is conducted by tax authorities when a taxpayer fails to file a return or when it is necessary to adjust a self-assessment. The Commissioner-General uses the information available to calculate and impose the tax liability.
(2.5 marks)
iv) Tax Audit Assessment:
- A tax audit assessment is performed by the tax authority to verify that a taxpayer’s reported financial records and tax returns are accurate. It aims to ensure compliance with tax laws and may reveal additional tax liabilities.
(2.5 marks)
- Topic: Tax Administration
- Series: JULY 2023
- Uploader: Joseph