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An error may lead to understatement or overstatement of the tax liability. The tax payer has the responsibility of filling complete and accurate returns i.e. the installment tax returns and self assessment returns. If the error is discovered by the tax payer he can apply for relief or error or mistake. This must be done within a period of 7 years after the returns have been filed.
- If the commissioner agrees with the application he issues an amended assessment to the tax payer.
- If the commissioner does not agree with the application and take tax payer is not satisfied the tax payer can appeal to the local tax committee and then to the court of law.
- If the error is discovered by the commissioner he can issue an amendment statement. This can be amended either upwards or downwards.
- If is amended downwards it will lead to refund of tax to the tax payer. The amended assessment must be issued within a period of seven years.
Wilfykil answered the question on February 25, 2019 at 12:51
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