This preview shows page 1. Sign up to view the full content.
Unformatted text preview: s
con’t If the change from a valid basis to another
valid basis is accepted by the IRD, it normally
will not revise the valuation of
opening/closing stock for the earlier years.
Previous assessments, which was based on a
valid basis, cannot be reopened under s.70A
on the ground that the profits should be
computed on a different valid basis (prevailing
27 Change from a Non-valid Basis to
Valid Basis The new basis will be applied to calculate the
value of both the opening and closing stock
in respect of the year of change.
In addition, prior year assessments will be
reviewed to ensure that profits have not been
If profits have been under-assessed,
additional assessments will be raised and
consideration will also be given to the question
28 Long Term Contracts ( ) This covers building and engineering
contracts and property development
or investment contracts. Strictly, profits will not arise for tax
View Full Document
This note was uploaded on 04/02/2013 for the course ECON 20222 taught by Professor Junelau during the Spring '13 term at City University of Hong Kong.
- Spring '13