Self-assessment system v/s administrative assessment procedures


16-July-2012

Under the Administrative Assessment procedures taxpayers had to complete a Business Tax Assessment, which they had to lodge with SRC providing relevant information and SRC would then assess their tax liability. The self assessment system provides a business with the opportunities to assess its company’s performance and take ownership/responsibilities of data/information that is provided to SRC in the tax returns.

What are the main differences between the self-assessment system and the administrative assessment procedures?

There are two main differences between the self assessment system and the administrative assessment procedures:

• Under the administrative assessment procedures, taxpayers needed to provide Seychelles Revenue Commission (SRC) with all relevant information, including their profit and loss account or copy of audited accounts, in the case of a company, for SRC to assess the taxpayer’s taxable income and tax liability. The assessment was made by making any necessary adjustments to the taxpayer’s calculation of taxable income. Under the self assessment system, taxpayers assess their own tax debt or refund. This means that the taxpayers determine their own tax liabilities.

• Under the administrative assessment procedures, a notice of assessment was issued after the return had been lodged, indicating the tax refund or the amount of tax payable and the due date for payment. Under the self-assessed tax return, taxpayers need to ensure that whenever there is an outstanding liability, payment of the amount is effected when the return is lodged.

Is the lodgment date different under the self-assessment system?
It is important to note that the switch to the self-assessment system DOES NOT change the date on which the returns have to be lodged. Under the self-assessment system businesses are still required to lodge their return no later than March 31 of each tax year. This means that businesses have a period of three months to complete and submit their returns after the completion of their financial year.

What are the benefits of the self-assessed tax system?
The benefits of the self-assessment system are:

• The taxpayers develop a greater understanding of their tax affairs;
• It gives the taxpayers greater equity and fairness;
• It increases certainty/trust;
• It is simpler to use;
• No need to provide any documents/records except the Return and Business Activity Statement (BAS) Form.

For more information
You can contact Seychelles Revenue Commission on 4293737 or email us at This email address is being protected from spambots. You need JavaScript enabled to view it. . The Self Assessment Business Tax Return Guide is available on the Seychelles Revenue Commission website (www.src.gov.sc).

Submitted by the Seychelles Revenue Commission

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