Time limit to making tax assessments.

The CIT can issue an assessment when:

  • The taxpayer has failed to file tax returns
  • The CIT believes that the taxpayer was under assessed hence issue additional assessment.
  • Where the CIT discovers a fraud in tax returns filed by the taxpayer in earlier years.
  • In case of discovery of fraud the CIT can issue an assessment regardless of how many years
  • have lapsed since the fraudulent returns were filed.
  • For any other type of assessment, the CIT can issue it before the lapse of 7 years from the year
    of income to which the assessment relates.
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