What is B.O.J (Best of Judgement Assessment) in Nigerian Tax?

A B.O.J otherwise known as a Best of Judgement Assessment is a tax assessment procedure conducted by Tax Authorities on the accounts of a company. It is usually done where the tax payer does not provide any Audited Accounts or Statement of Net-worth if it is an individual. It can also be conducted if the Tax Authorities have reasons to believe the accounts presented by the tax payer is not sufficient enough to assess their tax liability. That way companies who are fond of under declaring profits can by law be further assessed by the tax authorities and if found wanting will be expected to pay more tax than previously thought.

Most people consider B.O.J as a punitive measure because it often times result in a higher tax liability for the tax payer. To avoid B.O.J’s it is advisable to prepare your accounts with the utmost clarity and fairness. Submission of your accounts on time also helps avoids incidence of a B.O.J.

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