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Explain five types of notices of assessment

Explain five types of notices of assessment

Answers

Wilfred
Assessments include;
1. Self-assessment
This is where the taxpayer computes his taxable income and tax accruing therefrom. The taxpayer completes an income tax return and submits to the domestic taxes department.

2. Installment assessment
This is when a person prepares own installment return where he computes his own income and tax payable. When a person has paid installment tax, he shall be deemed to have been assessed for the purposes of installment tax on the basis of installment tax paid.

3. Estimated assessment
This is issued by the commissioner of domestic taxes on any income that he estimates to his best of his judgment: issued where:
a) The taxpayer has failed to submit self-assessment return
b) The taxpayer has failed to submit installment return
c) The commissioner does not agree with the taxpayer's assessment
d) Returns have been made but the document accompanying them does not satisfy the commissioner.
Partial are normally charged at the rate of 5% based on the outstanding tax. The minimum penalty is 5000 for body corporate and sh. 1000 for an individual.

4. Additional assessment
It is issued by the domestic tax department after the payer has submitted his self-assessment returns. Additional assessment is issued when the domestic taxes department discovers that there are some incomes which have not been declared by the payer or discovers some expenses claimed by the taxpayer which does not relate to business
Where a declaration or non-declaration of income is though fraud or willingly negligence heavy penalties are imposed.
In case of a taxpayer it is 200% of the evaded and in case of an agent or accountant a fine of up to 200,000 is imposed or imprisonment of up to 2 years or both.

5. Amended assessment
It is issued by the domestic taxes department where a taxpayer has lodged a notice of objection to the commissioner against an assessment or has applied for relief of error or his stake or has made an appeal to the local committee or tax tribunal or a COUl1 against assessment.
Amended assessment can either be amended upward or downward
Wilfykil answered the question on February 25, 2019 at 10:23

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