Direct Assessment Guide
DEFINITION: It is a system through which self-employed persons are assessed and charged to Personal Income tax.
The self-employed include but not limited to: Professionals (Lawyers, Architects. Accountants, Surveyors, Consultants etc). Contractors, Politicians, Mechanics, Traders, Welders, Vulcanises, Farmers, Carpenters, Tailors, Butchers, Hairs Dressers, Bricklayers, Dyers, traders, artisans and all residents in Taraba State who have any source of income.
METHOD OF OPERATION
These categories of people can be assessed through the following:
It is a system where a taxable person voluntarily assess himself, file tax returns and pays to the Taraba State Board of Internal Revenue (BIR). The self-assessment filed may be subjected to review from time to time by Taraba State BIR.
(B) GOVERNMENT ASSESSMENT
It is a system where the tax payer is assessed by Taraba State Board of Internal Revenue (BIR) after he has filled and returned his annual tax returns for the relevant year of assessment
(C) BEST OF JUDGEMENT ACCESSMENT (BOJA)
It is a process where Taraba State Board of Internal Revenue (BIR) uses the Information available to it to raise an assessment on a tax payer who fails to file his returns within the stipulated period as allowed by law.
(D) PROCEDURES FOR SELF-ASSESSMENT
- Collect the Self Assessment form from the Head Office or any Area Revenue Office nearest to you
- Complete the form honestly, indicating your actual Income for the relevant years of assessment.
- Indicate the correct tax you should pay based on the approved self assessment tax table
- Pay the tax to any of the designated Bank Accounts or POS terminals and make sure you collect an-e-receipt instantly.
- Payment could be made in cash, cheque or bank draft
- Having assessed and paid, the Revenue will review to ascertain the correctness of the assessments; and may accepts or review the assessment either upward or downward.
(E) OFFENCES AND PENALTY
|S.47(3)||A person who engages In banking business who fails to render returns. books, documents and Information
on demand within 7 days
|N50,000 For Individual|
|S.49(3)||A person who engages in banking business who fails to render Information about new customers within 7 days of the next following month||For Individual N50,000|
|S.52(1)(a)||Failure to keep Book of Accounts||For Individual N50,000|
|S.74(1)||Failure to deduct/remit tax||10% of taxes not deducted/ remitted plus interest at CBN Monetary policy rate|
|S.81(a)3||Failure to file returns by self employed||N50,000 ( Individual)|
|S.94||Failure to comply with any
provision where there is no
|N50,000 in the 1st instance
N100 for every day
|S.95(1)||Making incorrect returns||N20,000.00|
|S.95(1)(b)||Making false statement and returns
|S.96(1)||False statement by person in relation to tax payable or repayable||N10,000.00 or imprisonment nor more than 6 months|