Returns and assessments Flashcards
What is a tax return?
A tax return is a formal document submitted to tax authorities reporting income, expenses, and other tax-related details.
When must an income tax return be submitted in Malawi?
Within 180 days after the end of the year of assessment.
Who is required to submit a return of income?
All taxpayers except those whose income is fully subject to PAYE and below the tax-free threshold.
What is the penalty for failing to submit a return of income?
A fine of up to K200,000 for companies and K50,000 for individuals, plus the difference in tax owed.
What is an additional assessment?
An extra tax assessment made if the Commissioner General finds that a taxpayer was under-assessed.
Within how many years can an additional assessment be made?
Within six years after the end of the tax year, unless fraud or willful default is involved.
Under what circumstances can the Commissioner General estimate a taxpayer’s income?
If the taxpayer fails to submit a return, submits an unsatisfactory return, or is about to leave Malawi without submitting one.
Who is a representative taxpayer?
A person responsible for handling tax matters on behalf of another taxpayer, such as a company’s public officer.
What documents must accompany a tax return?
A statement of financial position, statement of comprehensive income, and other supporting records.
What is the penalty for making false statements on a tax return?
A fine of K10,000 or twice the unpaid tax amount, whichever is greater.
What public institutions does the Commissioner General have access to for tax records?
Anti-Corruption Bureau, Financial Intelligence Unit, Registrar General, and others.
What is the role of a public officer in tax matters?
To act on behalf of a company in tax-related matters, including submission of returns and payment of taxes.
What is a notice of assessment?
A formal document from the tax authorities informing a taxpayer of their assessed tax liability.
