SELF-ASSESSMENT

Under section 67 of the Income Tax Act every person liable to pay income tax shall deliver or cause to be delivered by his agent, to the Commissioner of Inland Revenue or to the Collector of Taxes in the Parish in which he resides, a true and correct return of the whole of his income from every source for that year.

Such return must be prepared in the prescribed form and should include a statement of the tax chargeable on such income under the Act. This return should also indicate how much of the computed tax has already been paid and how much remains unpaid.

The amount of any Tax so computed as unpaid would thereafter be treated as if were the subject of a notice of assessment with a collection date of the 15th March, next following the end of the year of assessment.

Every return for any year of assessment should be delivered to the Commissioner of Inland Revenue, or the local Collectorate on or before the 15th day of March in the year next following the relevant year of assessment.

The Commissioner may however, on application being made in writing, extend the period of time within which any person may submit a return.

Section 66 of the Act also imposes a duty on every taxpayer to, before the 15th March in every year of assessment, compute the amount of any estimated income tax for such year and pay such tax to the Collector of Taxes in four equal instalments.

The due dates for payment are on or before 15th March, 15th June, 15th September and 15th December in each year. There are no provisions for any extension of time to be granted for the filing of estimated returns and the payment of the relevant tax.

In determining the amount of his estimated income tax liability the taxpayer is required to use the chargeable or statutory income as disclosed in his return of income for the immediately preceding income tax year and compute the tax thereon at the rate applicable for the current year.

Where any changes have occurred or are likely to occur which will affect the income for a current period, either upwards or downwards, adjustments may be made in computing any estimated income on which the tax is to be computed.

It should also be noted that where the chargeable income or statutory income is estimated to be less than that of the previous year, an application for a reduction is required under the Act and, if satisfied, that the income of the current year is likely to be less than that of the preceding year the Commissioner may accept the lesser amount.

In addition, if for a preceding income tax year no return was made or no tax was payable, the estimated tax may be computed on such statutory or chargeable income as may be estimated by the taxpayer and accepted by the Commissioner.

There are also rules governing the submission of revised estimated returns and situations where estimated returns are submitted after the 31st March, 30th June or 30th September. In such cases instead of the tax being spread over four instalments it would be applied over the number of instalment periods remaining in the year.

ADDITIONAL ASSESSMENTS

Section 91 of the Act gives the Commissioner the power to verify the correctness of every return, statement or particulars delivered under the Act. It is under this section that the Commissioner is able to audit returns submitted by taxpayers.

Section 72 (2) of the Act empowers the Commissioner to either accept any return as filed or refuse to accept the return and to the best of his judgement, make an assessment upon that person of the amount at which he ought to be charged.

Also, if it appears to him that the person has been assessed to a lesser amount than that to which he ought to be charged, he may within the year of assessment or within six (6) years of the end of that year assess such person at such additional amount or surcharge as according to his judgement ought to have been charged.

ESTIMATED ASSESSMENTS

The Commissioner of Inland Revenue may under section 70, serve a notice on any person requiring him to make and deliver a return of his income or the income of any person.

Any person so served whether or not he is liable to pay income tax shall within fifteen (15) days of the service of such notice prepare and deliver to the Commissioner of Inland Revenue the requested return(s).

Where persons have failed to submit income tax returns or have failed to do so by the due date or within any additional period granted to do so, the Commissioner may, under section 72, proceed to assess every person liable to the payment of tax.

Any assessment issued in this manner will be deemed an estimated assessment.

TAX AT SOURCE ASSESSMENT

Tax which is levied on income at the point at which the income originates is classified as income being subject to "Tax at Source". This type of assessment is levied on such income as - Interest, Dividends, Salaries and Wages.