Objections To Tax Assessments

In this series of articles, Cameron Kotze, Tax Partner at Ernst and Young, discusses some topical tax issues with our readers.

NAMIBIA has a self-assessment tax system for income tax payers. This means that you must complete your tax return – or get someone to assist you – and calculate how much tax you are required to pay the Receiver of Revenue or how much tax should be paid to you.Although the average person finds the current tax form complicated to complete, the onus is on you to provide all information regarding your income and expenses so the Receiver is in a position to determine whether the calculation that you have made is satisfactory enough to establish how much tax you should pay.The Receiver must examine your calculation and be satisfied that it is correct.In terms of section 67 of the Income Tax Act, the Receiver is obliged to issue you with a notice of assessment once the calculation of the taxable income for the year is concluded.The notice of assessment must include: * the taxable income for the year and the tax payable on the taxable income; * the date before which any tax payable in terms of the assessment must be paid; * that any objection to the assessment must be lodged within 90 days of the date of issue of the assessment; and * the place where an objection must be lodged.If your assessment shows there is an amount owing to the Receiver, the outstanding balance is subject to interest.This accumulates at a rate of 20 per cent a year, calculated daily and compounded monthly.Keep a copy of your submitted tax return to enable you to compare the taxable income reflected on the tax assessment to your completed return.If the two differ, you can object to the assessment on the basis that your calculation is correct.Objections must be made in writing and submitted to the Receiver within 90 days of the date when the assessment was issued.This date is reflected on the top right hand side of the tax assessment.The grounds for your objection must be written in full as the Receiver will not accept additional arguments after your objection is submitted.If the Receiver turns down your objection in writing, you have the right to appeal to the Special Court for Hearing Income Tax Appeals within 30 days of the date of notice that the objection has been disallowed.You need to comply with these provisions of the Income Tax Act to ensure an incorrect assessment is corrected by the Receiver of Revenue.Should readers have queries, they are invited to send them to cameron.kotze@za.ey.com.This means that you must complete your tax return – or get someone to assist you – and calculate how much tax you are required to pay the Receiver of Revenue or how much tax should be paid to you.Although the average person finds the current tax form complicated to complete, the onus is on you to provide all information regarding your income and expenses so the Receiver is in a position to determine whether the calculation that you have made is satisfactory enough to establish how much tax you should pay.The Receiver must examine your calculation and be satisfied that it is correct.In terms of section 67 of the Income Tax Act, the Receiver is obliged to issue you with a notice of assessment once the calculation of the taxable income for the year is concluded.The notice of assessment must include: * the taxable income for the year and the tax payable on the taxable income; * the date before which any tax payable in terms of the assessment must be paid; * that any objection to the assessment must be lodged within 90 days of the date of issue of the assessment; and * the place where an objection must be lodged.If your assessment shows there is an amount owing to the Receiver, the outstanding balance is subject to interest.This accumulates at a rate of 20 per cent a year, calculated daily and compounded monthly.Keep a copy of your submitted tax return to enable you to compare the taxable income reflected on the tax assessment to your completed return.If the two differ, you can object to the assessment on the basis that your calculation is correct.Objections must be made in writing and submitted to the Receiver within 90 days of the date when the assessment was issued.This date is reflected on the top right hand side of the tax assessment.The grounds for your objection must be written in full as the Receiver will not accept additional arguments after your objection is submitted.If the Receiver turns down your objection in writing, you have the right to appeal to the Special Court for Hearing Income Tax Appeals within 30 days of the date of notice that the objection has been disallowed.You need to comply with these provisions of the Income Tax Act to ensure an incorrect assessment is corrected by the Receiver of Revenue.Should readers have queries, they are invited to send them to cameron.kotze@za.ey.com.