Amendment Of Assessment

Question 1

Amendment of Assessment definition

Answer 1

1. CIR empowered to amend an assessment order (treated or best judgement)
2. May make such alterations/additions as necessary
3. Amendment of assessment shall be made within 5 years from end of FY in which original order is issued/treated

Question 2

Amended order issuance on revision of return (2)

Answer 2

If tp furnishes revised return:
- CIR shall treat revised return as amended assessment of taxable income and tax payable

• taxpayer’s revised return shall be treated as amended assessment order

Question 3

Further amendment or re amendment

Answer 3

1. CIR is empowered to amend further as many times as necessary

2 Within:

The LATER OF:
- 5 YEARS from end of FY the original assessment order issued/treated issued

• 1 YEAR from end of FY in which amended assessment order was issued/treated issued

Question 4

Circumstances for amendment of assessment order (5)

Answer 4

1. Only amended where CIR has definite information
   - has definite information
   - acquired from audit
   and is satisfied, that:
2. Any taxable income has escaped amendment
3. Total income, under assessed or assessed at too low tax rate
4. Subject of excessive relief or refund
5. Any amt under a head has been misclassified

Question 5

Definite information (4)

Answer 5

Information relating to:

• sales or purchase of any goods made by tax payer
• receipts of taxpayer from services rendered
• other receipts relating to
  
  • acquisition
  • possession
  • disposal
    of any money, asset, valuable article
• investment made or expenditure incurred

Question 6

Contents of amended assessment order

Answer 6

• amended taxable income
• amended tax due
• amended tax paid
• time, place, manner of appealing the amended assessment

Question 7

Misc points of amendment of assessment by CIR (2)

Answer 7

1. if he considers that its erroneous and prejudicial to the interest of revenue.
2. No assessment is amended without giving opportunity of being heard to taxpayer

Question 8

Limit to issue amended assessment order

Answer 8

1. May pass amended order within 120 days of issuance of show cause notice (extended by maximum of 90 days by CIR for reasons in writing)
2. Time shall be excluded from limit
   on account
   - Adjournment of hearing on request of taxpayer not exceeding 60 days

• adjournment on account of
  
  • stay order
  • ADRC Proceedings
  • agreed assessment proceedings

Question 9

An assessment can only be amended in two situations

Answer 9

1. On basis of audit or definite information

2. Assessment is erroneous AND prejudicial to interest of revenue board
ERROR OF ASMT AND TAX LOSS OF BOARD