Question and Answer: What is Self-Assessment Regime and What Are The Objectives?
The Government of Nigeria introduced a system of tax administration called Self-Assessment Regime as a modern practice of paying tax. It encourages taxpayers to assess themselves and pay their tax liabilities voluntarily. The regime is based on the fact that taxpayers have the best information about their own activities and hence are in the best position to assess their own tax liabilities.
Self-assessment is a method where by a taxpayer is required to correctly compute own tax liability, properly complete the return, pay the self-assessed tax and submit the tax returns together with the accompanying documents on or before the due date according to the relevant tax law.
Objectives of the Self-Assessment Regime
The main objectives of the Self-Assessment Regime are:
- To make payment of tax easy by enabling taxpayers to assess themselves and pay a fair tax according to their business activities.
- To test the honesty and integrity of the taxpayer.
- To build trust on the taxpayer.
- To make the Tax Administration System friendly and more efficient through:
- Easing the process of paying tax;
- Reducing the pressure on taxpayers by Tax Authorities;
- Minimising tax disputes between taxpayers and Tax Authorities;
- Focusing more on supporting taxpayers to comply voluntarily.
- Ensure steady inflow of revenue to the government.