Question Tag: Taxpayer Responsibility

The self-assessment regime offers the following benefits:

1. Increased accuracy and fairness
   • Taxpayers are in the best position to know their income and circumstances, which leads to more accurate and fair tax calculations. Self-assessment allows them to report their tax liabilities more accurately, based on their specific situation.
2. Reduced disputes and objections
   • Since taxpayers are involved in determining their tax liabilities, there is a lower likelihood of disputes or objections over tax assessments. This can result in smoother interactions between the tax authority and taxpayers.
3. Faster collection of taxes
   • Self-assessment encourages timely and accurate filing of tax returns, allowing the tax authority to collect taxes earlier, which improves cash flow for the government and aids in achieving revenue targets.
4. Promotes voluntary compliance
   • By empowering taxpayers to assess their own tax obligations, the self-assessment regime fosters a culture of voluntary compliance. This reduces the need for aggressive tax enforcement actions and penalties.