Broadly, there are two types of Tax Assessments: Self-Assessment and Administrative Assessment.<\/p>\n
By Ado Mohammed Abubakar<\/p>\n
1. Self-Assessment is where the taxpayer assesses himself by computing and remitting the applicable tax to the relevant tax authority.<\/p>\n
Under Self-Assessment for individual taxpayers, we have 2 broad categories:<\/p>\n
PAYE is for those in employment, which is computed, deducted, and remitted monthly to the relevant tax authorities by their employer.<\/p>\n
Direct Assessment is for self-employed individuals and enterprises. They are expected to assess themselves and remit the tax to the relevant tax authority.<\/p>\n
2. Administrative Assessment is where the tax authority assesses the taxpayer. It is usually used when a taxpayer fails to file a Self-Assessment or when the tax authority reviews the Self-Assessment and disagrees with the treatment of some items. There are 2 common types of administrative assessment:<\/p>\n
Revised Assessment is used where the tax authority disagreed with some items in the self-assessment return. The taxpayer has the right to defend himself by providing documents to support his Self-Assessment.<\/p>\n
Best of Judgment Assessment (BOJA) is a punitive assessment raised on those who failed to file a Self-Assessment. The tax authority estimates the tax liability based on information available to it. The taxpayer has a right to defend himself, but usually, a penalty and interest at the prevailing MPC rate will be added to the tax liability.<\/p>\n
Do you still believe that Nigerian Tax Authorities will automatically debit your bank account after reading the above?<\/p>\n
Ado Mohammed Abubakar, FCTI, FCA<\/p>\n","protected":false},"excerpt":{"rendered":"
Broadly, there are two types of Tax Assessments: Self-Assessment and Administrative Assessment. By Ado Mohammed Abubakar 1. Self-Assessment is where the taxpayer assesses himself by computing and remitting the applicable tax to the relevant tax authority. Under Self-Assessment for individual taxpayers, we have 2 broad categories: PAYE is for those in employment, which is computed, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-9292","post","type-post","status-publish","format-standard","hentry","category-builder"],"_links":{"self":[{"href":"https:\/\/kadasmeshub.ng\/index.php?rest_route=\/wp\/v2\/posts\/9292","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/kadasmeshub.ng\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kadasmeshub.ng\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kadasmeshub.ng\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/kadasmeshub.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9292"}],"version-history":[{"count":2,"href":"https:\/\/kadasmeshub.ng\/index.php?rest_route=\/wp\/v2\/posts\/9292\/revisions"}],"predecessor-version":[{"id":9294,"href":"https:\/\/kadasmeshub.ng\/index.php?rest_route=\/wp\/v2\/posts\/9292\/revisions\/9294"}],"wp:attachment":[{"href":"https:\/\/kadasmeshub.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9292"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kadasmeshub.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9292"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kadasmeshub.ng\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9292"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}