Under which provision can the CIR make assessments based on his own knowledge?

Under which provision can the CIR make assessments based on his own knowledge?

• A. Sec 6B, NIRC
• B. Sec 7, NIRC
• C. Sec 12, NIRC
• D. Sec 8, NIRC

Answer: (A)

The CIR can make assessments based on his own knowledge under a provision that empowers him to determine the tax due by using the best of his knowledge and belief. This lets the tax authority estimate the deficiency when a taxpayer hasn’t filed a return or when the information available in the filing isn’t sufficient to determine the correct tax. The idea is to prevent revenue loss by giving the Commissioner a way to compute the tax due even without relying solely on the taxpayer’s stated figures, while still applying due process—notice and the opportunity to contest the assessment. In practice, this is used when a return isn’t filed or the information on file doesn’t support a reliable determination from the return alone. The other provisions govern different aspects of the assessment process and do not authorize a self-knowledge-based assessment in the same way.

The CIR can make assessments based on his own knowledge under a provision that empowers him to determine the tax due by using the best of his knowledge and belief. This lets the tax authority estimate the deficiency when a taxpayer hasn’t filed a return or when the information available in the filing isn’t sufficient to determine the correct tax. The idea is to prevent revenue loss by giving the Commissioner a way to compute the tax due even without relying solely on the taxpayer’s stated figures, while still applying due process—notice and the opportunity to contest the assessment.

In practice, this is used when a return isn’t filed or the information on file doesn’t support a reliable determination from the return alone. The other provisions govern different aspects of the assessment process and do not authorize a self-knowledge-based assessment in the same way.