Estimated / "Best Judgment" Assessment Without a Return Form (Section 90(3) ACP)

Contents

1. Introduction
2. When is an estimated assessment made?
3. Right of appeal
4. Form Q and time limit
5. Companies: Form Q + BNCP from YA 2019
6. Assessments that cannot be appealed
7. Frequently Asked Questions (FAQ)
8. Official sources

Introduction

If the Income Tax Return Form (BNCP) is not submitted or is late, the Director General of Inland Revenue (DGIR) may make an estimated assessment under subsection 90(3) ACP. This article explains when an estimated assessment is made, the right of appeal and the Form Q requirement.

When is an estimated assessment made?

According to the HASiL Appeals page:

These cases are among those that CAN be appealed under section 99 ACP.

Right of appeal

An appeal against an estimated assessment can be made under section 99 ACP, subject to the time limit.

Form Q and time limit

Companies: Form Q + BNCP from YA 2019

Assessments that cannot be appealed

PR 7/2020 confirms: the definition of "Notice of assessment" includes "an estimated assessment under subsection 90(3) or 91(1) ACP"; paragraph 4.3.2 (cases of estimated assessment without/late BNCP); paragraph 4.8.1 (counterpart 99(1A)) for companies.

Frequently Asked Questions (FAQ)

Q: What is an estimated assessment under s.90(3)? A: An assessment made by the DGIR without a BNCP or where a BNCP is submitted late.

Q: Can I appeal? A: Yes — via Form Q not later than 30 days after the notice of assessment is served (s.99(1) ACP).

Q: What should I do if I am a company? A: From YA 2019, an appeal via Form Q against an s.90(3) estimated assessment must be submitted together with the relevant BNCP.

Q: Can an assessment deemed under s.90(1) be appealed? A: No — the right of appeal under s.99 does NOT apply (likewise BNT under s.91A).