Section 42, The Goods and Services Tax Act, 2009

(1) The Commissioner-General may make an assessmentof the GST due to or payable by a taxable person if— (a) the Commissioner-General is not satisfied as to the accuracy of a GST return lodged by the person; (b) the person fails to lodge a GST return as required under this Act; or (c) the person has been paid a refund or allowed an input tax credit under section 41. (2) If a person, other than a taxable person, makes a supply of goods or services and represents that GST is charged on the supply, the Commissioner-General may make an assessment of GST payable by the person in relation to that supply as if the person were a taxable person and the supply were a taxable supply. (3) If a taxable person makes a supply of goods or services and the supply is not a taxable supply or is a taxable supply charged with GST at the rate of zero percent, and in either case, the taxable person represents that a positive rate of tax is charged on the supply, the Commissioner-General may make an assessment of GST on that person as if the supply were a taxable supply. (4) An amount assessed under subsection (2) or (3) is treated, for the purposes of this Act, as GST payable under this Act unless, in the case of an amount assessed under subsection (3), the taxable person reasonably believed that GST should have been applied at the positive rate and has subsequently refunded to the recipient of the supply the GST charged on the supply or has otherwise satisfied the Commissioner-General that the recipient was not disadvantaged and that the taxable person was not advantaged by the incorrect charging of GST. (5) For the purposes of making an assessment under this section, the Commissioner-General may estimate the amount of GST payable by a person to the best of his judgement based on the information available to him and such an assessment shall be made within 2 months of sufficient information being available to the Commissioner-General and not more than 6 months after the conclusion of an audit of the taxable person. (6) The Commissioner-General shall serve notice of an assessment on the person assessed, stating— (a) the date of the assessment, the reason for the assessment, the amount of GST payable or refundable as a result of the assessment, and the basis on which that amount was determined; (b) the date on which any GST payable is due and payable, which shall not be more than 10 days after the date on which the notice is served; and (c) the time, place and manner of appealing the assessment. (7) The Commissioner-General may, within the timeframe for an assessment under this section, amend the assessment by making such alterations or additions to the assessment as he considers necessary, and shall serve a notice of the amended assessment on the person assessed. (8) An amended assessment is treated in all respects as an assessment under this Act. (9) The Commissioner-General may not make an assessment, including an amended assessment– (a) in the case of an assessment under paragraph (a) of subsection (1), more than 3 years after the end of the tax period to which the assessment relates; or 64 65 Assessments. (b) in the case of an assessment under paragraph (b) of subsection (1), more than 3 years after the date on which the refund was paid or, if an input tax credit was allowed, more than 6 years after the end of the tax period in which the tax credit was allowed, unless, in either case, the Commissioner-General has reasonable grounds to believe that the taxable person committed fraud or wilful default in furnishing the return for the tax period or in applying for the refund. (10) The Commissioner-General may make an assessment at any time if the assessment is made under paragraph (b) of subsection (1), subsection (2) or (3). (11) Nothing in subsection (9) prevents the amendment of an assessment to give effect to a decision of the Board of Appellate Commissioners established by section 138 of the Income Tax Act, 2000 or a court. (12) Nothing in this section prevents any interest or penalty payable– (a) in respect of GST assessed under paragraphs (b) and (c) of subsection (1) from being computed from the original due date for payment of the GST as determined under section 38; (b) in respect of GST assessed under paragraph (c) of subsection (1) in relation to an application for a refund, from being computed from the date on which the refund was paid; (c) in respect of GST assessed under subsection (2) or (3), from being computed from the date on which payment of the GST would have been due under section 38 if the supply had been a taxable supply.