This Article deals with the assessment process itself. It is important that the assessment of Tax by the State be accurate, timely, and contain appropriate information.
- The State shall provide an assessment of Tax following receipt of a Tax Filing or information received within a reasonable period of time and without undue delay.
The State shall provide an assessment of Tax with all reasonable dispatch, meaning that the State shall ensure that reasonable processes are in place to produce the assessment on a timely basis. The State shall not, in the absence of the Taxpayer's consent, deliberately withhold or delay an assessment of a Taxpayer for any reason. For example, absent such consent, the State shall not withhold an assessment because the law concerning a particular issue is undecided, or a Taxpayer is appealing another assessment. This would infringe on the Taxpayer's right to an efficient and effective Tax system, a system that demonstrates fairness and integrity, and the right to certainty in Tax matters as far as possible.
- An assessment shall show the computation of the Tax and the basis on which it was levied in sufficient particulars as to enable the Taxpayer to understand the computation.
An assessment shall show the computation of the Tax and the basis on which it is levied with sufficient particulars to enable the Taxpayer to reproduce the computation, in order to verify its accuracy. This provides clarity to Taxpayers and demonstrates fairness and integrity in the system. This is a fundamental responsibility of the State, and the State must ensure that sufficient systems are in place for this purpose. In the case of a dispute as to the computation, the Taxpayer may exercise rights to appeal.
- Where an assessment differs from that calculated by the Taxpayer, the reasons for the difference shall be outlined in the assessment in sufficient particulars.
Where a Taxpayer makes a calculation of Tax in a self-assessment, and the calculation of the State differs from that of the Taxpayer, the State must provide sufficient particulars, as well as the basis in law for the difference, so that the Taxpayer can readily understand the computation by the State and the reasons for the difference. General statements by the State, such as the correction of a computation error or that the assessment is based on the information which has been provided, are not sufficient to justify the basis of an assessment which differs from that of the Taxpayer. For the Tax system to be viewed as one with integrity and providing certainty to Taxpayers, specific details are to be provided as to the difference in the basis of the computation or the difference in the information which is used for the assessment. Then the Taxpayer can determine, possibly in consultation with a Tax Advisor, whether or not to exercise their right to appeal.
- Where the assessment levies interest or a penalty, the assessment shall show the calculation of the interest or penalty as the case may be in sufficient particulars as to enable the Taxpayer to verify the computation together with the basis therefor.
Where an assessment levies interest or a penalty, the assessment must show a detailed calculation of the interest or penalty together with the basis for the computation. Providing sufficient particulars is important for transparency and reinforcing the integrity and fairness of the Tax system.
- The State shall provide with the assessment notice details of the Taxpayer's Rights to appeal the assessment with such particulars of the process and applicable deadlines as shall be reasonable to enable the Taxpayer to make such an appeal.
An assessment shall include a notice of the Taxpayer's Rights to appeal the assessment with sufficient particulars as to the process and the applicable deadlines as may be reasonable to enable the Taxpayer to exercise their right to dispute resolution and file an appeal should the Taxpayer choose to do so. This does not mean that the specific details of exactly how to file an appeal need to be included with the notice of assessment, but the Taxpayer must be directed to a source which is reasonably accessible to enable the Taxpayer to obtain this information. In addition, the due date for filing the appeal must be clearly disclosed.