TAX 2.2D CITA (SELF ASSESSMENT)
Self-assessment requires taxpayers to diligently compute, file and remit tax liabilities in prescribed manner. According to the definition in Regulation 3 of the TASAR 2011, all these must be concurrent. Section 55, 52 and 53 mandates filing of honest returns. Section 68 is contradictory by saying that the board should serve notice. This provision may be challenged or can be used to justify non-payment on the ground that there has been no notification.
Where assessment has been made, the board can send notification of acceptance or require more document and evidence to be furnished in furtherance to Section 61.
The Tax Administration (Self-Assessment) Regulation 2011 was enacted by the FIRS pursuant to the powers granted in Section 61 of the FIRSEA.
Time for filing:
- For PIT: The regulation says 31st PITA says 30th or 31st.
- For PAYE: the regulation says not later than 30th Section 20 PIT (Amendment) Act 2011 says 31st Jan.
- For CIT: within 6 months from accounting year end.
- For VAT: is filed on a monthly basis. Not later than the 21st day of the subsequent month.
- For PPT: Regulation 12 TSAR; not later than 5 months from the end of the accounting period.
Deadline may be extended where:
- Taxpayer dies.
- Principal member of the taxable company dies.
- Natural disaster or fire outbreak is experienced by the company.
FIRS can review artificial transactions-Section 22 CITA, Regulation 25 TASAR.… An Administrative Assessment can be done where the taxpayer does not file return or understates in the return or underpays. This was done in Mobil Nigeria V FBIR. Regulation 25 notes that the Administrative Assessment shall include penalties effective from the time the return becomes due. This contradicts Section 85 of CITA and 32 of FIRSEA which makes liability effective from the time returns become due. Thus one may be paying penalty under the TSAR even where he is still within the allowed period under the CITA.
Regulation requires the taxpayer to file return and pay “on or before the due date”… furthermore, Regulation 18(2b) penalizes failure to pay within the due period. This contradicts certain statutes like CITA which allow payment after filing.
- Section 77(5) which allows payment by monthly instalments not exceeding 6 instalments… provided that the final instalment is made by 30th
- TSAR requires evidence of payment when filing PPT returns. This is not the case under Section 30(2) of the PPTA.
Complaint can be lodged with the RTA where dissatisfied with RTA’s decision, appeal to Executive chairman of the RTA or its equivalent.
In other words, after Section 68 FIRSEA professes its supremacy, Section 61 of the FIRSEA provides that regulations made should give full effect to its provisions (FIRSEA Provisions). the provisions of TASAR would bow to other statutes in the event of inconsistency.
By Section 66 CITA, assessment can be made by the board and they can go as far back as 6 years-Prime Plastichem V FIRS. Except in the case of fraud where they can reverse as long as possible.
Fair hearing must be followed in the Assessment Process and the tax authority must respond to the taxpayers letters-Prime Plastichem V FIRS, in this case the court held that by virtue of Section 33(3)(b) A company with at least 25percent of its capital imported is not liable to pay minimum tax. FIRS having assessed them did not respond to the appellants letters and denied them fair hearing. Thus the assessment of 180 million by the authority was invalid. In FBIR V Rezcallah, the court also noted that an assessment can be invalidated where it does not follow due process, or where it is made on grounds of mistake, omission, and so on.