• Part 21: Part 21: Assessments

    Amended (as from 18th June 2014)

    • Article 127 - Policy Statement on Assessments

      The self-assessment regime means that the Tax Department need not routinely make assessments. An assessment may be made where it is discovered there has been a loss of tax or an overpayment of a tax credit in respect of a Reimbursable Tax Loss under Part 16. Discovery assessments may not be made where information has been provided timeously. Assessments may only be made within specified time limits. Relief is provided for where a QFC Entity has overpaid tax due to an error or mistake in a return.

      Amended (as from 18th June 2014)

    • Article 128- Discovery Assessments and Determinations

      (1) If the Tax Department discover with regard to an Accounting Period of a QFC Entity that—
      (a) an amount which ought to have been assessed to tax has not been assessed;
      (b) an assessment to tax is or has become insufficient; or
      (c) relief has been given which is or has become excessive, including relief under Part 16,
      they may, subject to Article 128(3), make an assessment (a "discovery assessment") in the amount or further amount which ought in their opinion to be charged or amended in order to make good the loss of tax or the overpayment of a tax credit in respect of a Reimbursable Tax Loss under Part 16.
      (2) If the Tax Department discover that a return filed by a QFC Entity for an Accounting Period incorrectly states—
      (a) an amount that affects, or may affect, the tax payable by that QFC Entity for another Accounting Period; or
      (b) an amount that affects, or may affect, the tax liability of another QFC Entity,
      they may, subject to Article 128(3), make a determination (a "discovery determination") of the amount which in their opinion ought to have been stated in the return.
      (3) A discovery assessment or discovery determination under this Article may only be made if either Article 128(4) or Article 128(5) applies.
      (4) A discovery assessment for an Accounting Period for which a QFC Entity has filed a return, or a discovery determination, may be made if at the time that the Tax Department
      (a) ceased to be entitled to give notice of enquiry into the return; or
      (b) completed their enquiries into the return,
      they could not have been reasonably expected, on the basis of information made available to them before that time, to be aware of the situation mentioned in Article 128(1) or (2).
      (5) A discovery assessment for an Accounting Period for which a QFC Entity has filed a return, or a discovery determination, may be made if the situation mentioned in Article 128(1) or (2) is attributable to the fraudulent or negligent conduct of the QFC Entity or a Person acting on that QFC Entity's behalf.
      Amended (as from 18th June 2014)

    • Article 129 - Time Limits for Assessments

      (1) Subject to any provision of these Regulations allowing a longer period, no assessment may be made more than 6 years after the end of the Accounting Period to which it relates.
      (2) An assessment may be made for the purpose of making good a loss of tax or the overpayment of a tax credit in respect of a Reimbursable Tax Loss under Part 16 attributable to the fraudulent or negligent conduct of a QFC Entity, or of any Person acting on that QFC Entity's behalf, at any time up to 20 years after the end of the Accounting Period to which it relates.
      Amended (as from 18th June 2014)

    • Article 130 - Error or Mistake

      (1) If a QFC Entity that has paid tax under an assessment (whether a self-assessment or otherwise) asserts that the assessment was excessive by reason of some error or mistake in a return, it may make an application in writing to the Tax Department for relief, not more than 6 years after the end of the Accounting Period to which the return relates.
      (2) On receiving an application under Article 130(1) the Tax Department shall enquire into the matter and give such relief, by way of repayment, in respect of the error or mistake as is just and reasonable.
      (3) A QFC Entity may appeal against the Tax Department's decision under Article 130(2).
      Amended (as from 18th June 2014)

    • Article 131 - Assessment Procedure

      (1) Notice of an assessment to tax must be served on the QFC Entity assessed stating—
      (a) the date on which the notice is issued; and
      (b) the period within which any appeal against the assessment may be made.
      (2) Where a notice of assessment has been served on a QFC Entity, the assessment may not be altered except in accordance with the provisions of these Regulations or the Tax Rules.
      (3) The Tax Department shall keep a record of every assessment made.
      Amended (as from 18th June 2014)