CHAPTER 75:01 - Inland Revenue Division

Income Tax Act Mac 1
Vol. 1
BASIS OF ASSESSMENT
6. Tax shall be charged for each year of income upon the chargeable income
of every person for that year.
Basis of assessment
7. (1) The gains or profits of any person for a year of income so far as such
gains or profits arise from the carrying on of any trade business, profession
or vocation shall be
Chargeable Income of certain persons
(a) where there is an established accounting terminal date, the gains or
profits of the twelve months from the established accounting
terminal date occurring in the year immediately preceding the year
of income;
(b) in the case of the commencement by any person of any trade, business,
profession or vocation, the gains or profits from the date of
commencement of such trade, business, profession or vocation
occurring in the year immediately preceding the year of income or
occurring in the year of income to such date in the year of income
as may be agreed by the Board which agreed date shall thereafter
be the established accounting terminal date;
(c) in the event of a departure from the established accounting terminal
date, the gains or profits for such twelve-month period as the
Board in its discretion may determine in respect of the year of
income in which the departure from the established accounting
terminal date occurs and in respect of the next succeeding year of
income; thereafter the accounting terminal date resulting from the
change shall be the established accounting terminal date.
(2) Where any person ceases to carry on his trade, business, profession or
vocation, the gains or profits of such person arising from his trade,
business, profession or vocation for the year of income in which he ceased
to carry on his trade, business, profession or vocation shall be the gains or
profits from the established accounting terminal date in the year
immediately preceding the year of income to the date upon which he
ceased his trade, business, profession or vocation.
(3) In this section "established accounting terminal date" means the
accounting date to which the accounts of any trade, business, profession or
vocation of any person are ordinarily made up and accepted for the
purpose of assessment under this Act, or in the case of any new trade,
business, profession or vocation, such date as may be agreed by the Board.
BIR Mac Edition 91/01 Page 13