Introduction

The self-assessment tax system was introduced in the Nigerian tax laws in 1991 with operational effect in 1992 and initially restricted to a threshold of taxpayers and extended to the rest in 1998. However it was not until 2011 that its implementation became effective, through a Project based system. The Self assessment system requires that:-

The taxpayer accurately calculate his tax liability, pay the tax due at designated bank, collects e-ticket and file self-assessment return on or before the statutory (due) date for filing such tax return;

Tax returns are accepted, by the tax authority, as filed, subject to on-the-spot simple checks to ensure that tax return forms are correctly completed. The returns are later subjected to further administrative processing including risk assessment of all tax returns and audit, where necessary, determined by risk-based case selection;

Where the taxpayer fails to meet his obligations, late returns penalty and interest are imposed without fail, as the case may be. The tax authority exercises its right under the law by issuing administrative assessments on taxpayers who fail to file tax returns on due date.

Information for such assessments are obtained by an on the spot audit of the taxpayer’s records and from third-party sources. It is noted that ahead of due dates for filing tax returns, taxpayers are reminded about their obligation to file and pay taxes due. The Tax Authority relies heavily on post-filing controls such as risk-based audits, collection enforcement measures, et cetera to elicit compliance.

The implementation of self-assessment tax system as re-invigorated since 2011 has brought about changes that resulted from a re-designed work-flow processes, which gave the taxpayer his full right to assess himself/herself. The Self-assessment system eliminated the 100% examination of tax returns that was hither-to in practice and replaced it with risk based case selection for audit.

The Tax Administration (Self Assessment) Regulations gazetted on December, 2011 has clarified provisions of the Tax laws on Self Assessment and provided rules for processes. The fact that some publishers of tax laws have included the Regulation in new Compendium of Tax Laws is a measure of acceptance.

It is worthy of note that field offices and officers have embraced the system of self assessment and made giant strides in not only their collections but Taxpayer education and information through Stake holder engagements on Self-Assessments and Tax administration in general.

The buy in of the internal stakeholders who are also champions of change in the Administration has impacted positively and endeared partnership between the Service and various segments of taxpayers. Some of the engagements that were held within the 2nd Quarter 2012 where Self assessment was extensively discussed are as follows:

Stakeholders Engagement /Sensitization and enlightenment programme on Self Assessment ion Lagos, 4th of April 2012. It was well attended by Large taxpayers. Presentation of paper titled “Self Assessment Issues and Challenges” at CITN engagement in Lagos – 05/07/2012.

The fact that CITN is a major stakeholder speaks volumes about the acceptance of Self-assessment. Stake-Holder Engagement for Abuja Region. Titled “Self-Assessment and Regulations- what the Taxpayer need to know and/ or do”. 11th July 2012