As part of the ongoing compliance program, the Inland Revenue Department may conduct detailed audits of tax submissions. The Department can re-assess an Income Tax Return as long as it is done no later than six years after the date on which the original tax return was required to be filed. However, there are certain instances where there is no time limit imposed on the Inland Revenue Department’s ability to audit and reassess previously filed returns. Those instances are:
1. Where no assessment was made;
2. The original assessment was based on false information due to fraud or the willful neglect of the taxpayer; or
3. No tax return was ever filed by the taxpayer and the Comptroller made an assessment based on his or her best judgment at the time.