Tax Assessment

Tax assessment is the process used by tax authorities to determine the amount of tax an individual or business owes. This involves evaluating financial information, such as income and expenses, to calculate taxable income and the corresponding tax liability. Tax assessments can be done automatically based on reported data or through audits when discrepancies arise. The assessment informs the taxpayer of their tax obligations and provides a basis for collecting taxes. Taxpayers have the right to dispute assessments if they believe them to be incorrect, often leading to appeals or negotiations with the tax authorities.