Basis period and changes in accounting dates

1. marina ibrahim Page 1 6/18/2012
BASIS PERIOD AND CHANGES IN ACCOUNTNG DATES
 For employment income – basis year = Calendar Year (1/1 – 31/12)
 Business income:
i. Sole proprietorship, partnership, club and trade association – Basis year = Calendar Year.
ii. Company, trust body and cooperative body – Basis Year = Accounting Period.
General rule: the accounting year of the company will be the basis year for the assessment except when:
i. Upon the commencement of the business
ii. Upon changes of the accounting period.
1. Commencement Date of Business
First set of accounts ended on 31/12
 BP = AP (8.0)
First set of accounts ended on non-31/12
First set of accounts = 12 months (4.0)
 Accept AP as BP Sec21A(4)
First set of accounts = 12 months
Required by: (5.0)
 Law or
 Group of company
BP = AP
 E.g. 17.8
 E.g. 17.9
Own Will (voluntarily) (7.0)
Sec 21A (1)
 BP = ends on 31 December
until a 12 months
accounting periods is
obtained.
 E.g. 17.11
 Over lapping period.

2. marina ibrahim Page 2 6/18/2012
2. Change of Accounting Date
31 DECEMBER (10.0)
NORMAL ACCOUNTING DATE
NON 31 DECEMBER (9.0)
Sec 21A (2)
 BP = ends on 31 December
until a 12 months accounting
periods is obtained.
 Over lapping period
 E.g. 17.22, 17.23, 17.24.
New Accounts MORE
than 12 months (9.1)
New Accounts LESS
than 12 months (9.2)
A.
New accounts end in
the following year.
 AP = BP
 E.g.17.16
B.
New accounts end in
the third year.
 Apportion the
new accounts
into 2 BPs,
therefore
created 2 YAs.
 E.g. 17.17
A.
New accounts end in
the following year.
 AP = BP
 E.g. 17.18,
17.19, 17.20
B.
New accounts & normal accounts
end in the same year.
 New AP + Following AP.
 The aggregate of the
above will be the BP
(YA).
 E.g. 17.21,