How to Quickly and Easily file Your Self-Assessment Tax Returns
Rendering of self-assessment tax returns is born out of the principle of voluntary compliance. The taxpayer willingly and voluntarily discharges her tax obligations with no interference from the tax authority.
This empowers the taxpayer to compute his tax liability, pay the tax due and produce evidence of tax paid at the time of filing his tax returns at the tax office.
The underlying objective is to promote voluntary tax compliance and ensure that the taxpayer takes responsibility for this assessment
In order for the taxpayer to exercise the right of self-assessment. He or she will need the assistance of a licensed auditor and a professional tax consultant who will help him or her to navigate the technicalities involved.
It is worth mentioning here that all limited liability companies are expected to file their company income tax return not later than six months after your company’s year-end. While personal income tax return of self-employed is always on or before March 31st of the following year.
6 STEPS TO FOLLOW TO FILE YOUR SELF ASSESSMENT RETURNS.
Self-assessment tax returns involve principally filing for company income tax returns and self-employed personal income tax returns.
The processes or steps and the documents required are detailed below:
- Audited Financial Statement or Statement of Affairs: This is a principal document that must be attached to the returns without this, all other documents cannot be produced and it will be very difficult for returns to be filed. The audited financial statement is prepared by companies who had started business and statement of affairs is prepared for companies that are yet to start a business. For the audited financial statement or statement of affairs to be produced the company must have a licensed external auditor in public practice who must be a member of Association of National Accountants of Nigeria (ANAN) or Institute of Chartered Accountant of Nigeria (ICAN)The audited financial statement or statement of affairs must be duly signed by two and official stamp of the principal partner.
- Tax Computations: This is where the tax to be paid by the company is determined. It is a byproduct of audited financial statements. All the figures needed to prepare tax computations are generated from the audited financial statement. The tax computation can be prepared by the auditor or the tax consultant or adviser. The tax computation always covers Company Income Tax, Education Tax, Capital Gains Tax (if there is any) and National Information Technology Development Levy (where applicable).
- Capital Allowances Computation: Capital allowance is a claim by taxpayers against any item of the fixed asset purchased by the company for the purpose of earning revenue. The capital allowance is claimable in the first year of purchase and annually. It is used in reducing assessable profit but subjects to a certain condition.
- Schedule of Assets: This is another important document that must be submitted along with the Company Income Tax Returns. It is the list of property, plant, and equipment of the company which details the date of purchase, description, identification number, and the amount.
- Evidence of payment of the tax due: After the tax has been computed then payment will be made through a designated bank of the tax authority. The e-docket must be collected from the branch of the bank in which payment is made.
- Duly completed self-assessment form (CIT & EDT): At this stage self-assessment form will be filled and duly completed for both the Company Income Tax and Education Tax. These completed form must be signed by a principal officer of the company before submission.
All the above documents are attached together and submitted to the tax office in which your file is domiciled.
The above steps are also used in filing self-assessment for the personal Income tax of self-employed individuals.
The whole point of this write up was to let you know that as a taxpayer you have a very key role to play in determining how much tax to pay.
However, because of the knowledge and technicalities involved, you need the assistance of an experienced tax consultant who can help you avoid potholes in enjoying this right.
Enjoying your rights as a taxpayer depends on facts and the tax law that is why you will need to sign up below, for our ebook so that you may know other information that will make you pay your tax with a smile.
Just go ahead and fill the form, you will discover that payment of tax shouldn’t be a burden.