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Home > Legislation & administration > Tax administration > Assessments

Assessments

An assessment is the process of determining tax liability. The basis of tax liability is specified in the Duties Act 2001. Assessments are issued under the Taxation Administration Act 2001 (TAA) and may be made by the Commissioner or on the Commissioner's behalf. In addition, the Commissioner may reassess tax liability in particular circumstances. With any assessment the Commissioner must issue an assessment notice.

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Assessments by the Commissioner

The Commissioner:

must make an assessment if the taxpayer has a tax liability which is not required or permitted to be accounted for by return
may make an assessment where the assessment is required or permitted to be accounted for by return
may make an assessment where the taxpayer's liability is nil.

The Commissioner will make an assessment on the basis of the relevant information available.

Compromise assessments - The Commissioner may enter into a written agreement with a taxpayer regarding tax liability if it is difficult or impractical to accurately determine tax liability. For example: In cases where the volume of transactions associated with a matter means an accurate determination of tax liability could take a long time given the amount of tax involved.

Default assessments - The Commissioner may issue a default assessment where:

a taxpayer fails to comply with an information or lodgement requirement. For example: The taxpayer delays lodging information
the Commissioner is not satisfied with the information or documents lodged

or

the Commissioner does not have sufficient information to make an assessment.

The assessment shall be made for the amount the Commissioner reasonably believes to be the taxpayer's tax liability.

Returns/self assessment

Self assessment stamping is a method of accounting for duty and tax by periodic return, also known as 'in-house' stamping, wich involves the self assessment of duty on transactions and instruments, endorsements of documentation and payment with lodgement of a periodic return, usually weekly or monthly.

Visit the self assessment section

Reassessment

A reassessment does not replace the previous assessment but merely increases or decreases it or changes the basis on which the tax liability was assessed. The TAA specifies when the Commissioner must reassess tax liability. The Commissioner cannot be compelled to make a reassessment decreasing a taxpayer's tax liability and time limits for some reassessments are specified.

Assessment by notice

The Commissioner must issue an assessment notice to the taxpayer when an assessment is made. The assessment notice requirements specify what is required to be included under the TAA. For further information contact us.