My understanding of the aforestated, is that where a taxable person fails to make the necessary tax returns in a year as prescribed by the relevant tax authority, the latter shall after the expiration of the period allowed proceed to make necessary assessment of the amount of tax due based on its best of judgment and such amount assessed must be delivered to the taxable person for his information and compliance. If after there is a failure or refusal to comply then a demand notice may be sent to him or the two may be sent together to facilitate the process of tax payment. Two points are required to be made clearer here. The first is that the assessment shall be on yearly basis for purposes of clarity and not a lumped up assessment. This is to ensure that tax payable for each year is clearly set out. The total number of years assessed where applicable may however be attached together with the demand notice and delivered to the taxable person. In other words, a demand notice is not the same as assessment notice as contended by the Respondent.
— S.C. Oseji, JCA. Access Bank v Edo State BIR (2018) – CA/B/333/2015