In any of the following circumstances, the competent tax authority may assess the sales amount and tax payable of a business entity and levy the delinquent tax based on the data obtained from investigation.
1. Where the sales amount has not been reported more than 30 days beyond the prescribed time limit.
2. Where accounting records have not been kept or an entry has not been made in accounting records within the deadline prescribed by regulation and there has been a failure to make such entry after notification, or where accounting records have been lost, or where the tax authority is refused to check up on accounting records, or where false statements have been made in accounting records.
3. Where business operations have been commenced prior to completion of taxation registration, or where business has been continued after suspension of operation, and sales amount has not been reported in accordance with regulation.
4. Where the sales amount has not been reported or has been under- reported.
5. Where there has been a failure to issue uniform invoices or where the sales amount shown on the uniform invoices has been understated.
6. Where uniform invoices have not been used, although it is required by regulation.
Where the sales amount reported by the business entity is found to be abnormal, the competent tax authority may, by referring to the circumstances of similar business and other related information, determine the sales amount or tax payable and levy the delinquent tax.