Where there is a tax assessment raised by the Inland Revenue Department, the taxpayer, who disagreed with the assessment raised against him, must object to the assessments within the statutory one-month period as stipulated by section 64 of the IRO. Otherwise, the tax assessment will become final and conclusive in terms of section 70 of the IRO.
In the case where the appellant has made an objection to an assessment, the assessment does not become final and conclusive until the determination of the objection (and if the determination is appealed against, until after the determination of the appeal).
When the tax assessment became final and conclusive, there is no right for the taxpayer to ask for re-open the assessment. (Though in certain cases, the Commissioner is still of the rights to raise additional assessments where circumstances are warranted.)
Despite an assessment had become final and conclusive, a taxpayer may invoke section 70A to deal with any errors or omissions of his assessment. According to D137/02, the wording of section 70A, errors or omissions are confined to:
1. an error or omission in any return; or
2. an error or omission in any statement submitted in respect thereof; or
3. any arithmetical error or omission in the calculation of the amount of the assessable income or profits assessed or in the amount of the tax charged.
The usual cases for the application of Section 70A are where the arithmetical error or omission in the calculation of the amount of the assessable income or profits in a return that results in an excessive tax charge. In D137/02, the Board was of the view that even the assessment was raised by a compromise reached with the Department, it did not exclude the operation of section 70A.
Bearing in mind that the narrow grounds of errors or omissions under Section 70A does not confer any right to the taxpayer to introduce further evidence to object or appeal the assessment.