Section 37:

37. Director-General may make assessments (1) Subject to subsections (3) and (4), where— (a) a person— (i) fails to submit a return under section 22 or a statement under section 23; (ii) fails to keep proper records; (iii) fails to comply with any of the requirements under section 29, 31 or 32; (iv) being a taxable person, fails to apply for registration as a registered person; (v) benefits from a repayment of tax under section 24 and it is subsequently found that the tax or part of the tax ought not to have been repaid; (vi) fails to remit to the Director-General any VAT charged on any supply made by him; or (b) the Director-General is not satisfied— (i) with a return submitted under section 22 or a statement under section 23; or (ii) with the adequacy or correctness of the records kept, the Director-General may, on such information as is available to him, make an assessment of the tax due and payable by that person or of the excess amount to be carried forward in case the input tax exceeds the output tax and give to that person written notice of the assessment. (2) Where the Director-General has given notice of assessment to a person under subsection (1), that person shall, subject to section 38, pay the amount of tax specified in the notice, not later than 28 days of the date of the notice. (3) Subject to subsection (5), an assessment under subsection (1) shall not be made in respect of a period before 4 years immediately preceding the last day of the taxable period in which the liability to pay tax arose. V4 – 29 [Issue 10] Value Added Tax Act (4) No assessment under subsection (1) shall be made where the amount of tax or the reduction in the excess amount to be carried forward does not exceed 250 rupees. (5) Subsection (3) shall not apply in case of fraud. [S. 37 amended by s. 33 (f) of Act 14 of 2005 w.e.f. 21 April 2005; s. 53 (j) of Act 9 of 2015 w.e.f. 1 June 2016; s. 57 (h) of Act 10 of 2017 w.e.f. 24 July 2017.]