2012 Unit 5 Profit computation - s

26 change from a valid basis to a change valid basis

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Unformatted text preview: s con’t con’t If the change from a valid basis to another If valid basis is accepted by the IRD, it normally will not revise the valuation of opening/closing stock for the earlier years. opening/closing Previous assessments, which was based on a Previous valid basis, cannot be reopened under s.70A cannot on the ground that the profits should be computed on a different valid basis (prevailing practice). practice). 27 Change from a Non-valid Basis to Change Valid Basis The new basis will be applied to calculate the The new value of both the opening and closing stock opening in respect of the year of change. year In addition, prior year assessments will be In prior reviewed to ensure that profits have not been under-assessed. under-assessed If profits have been under-assessed, If under-assessed additional assessments will be raised and additional consideration will also be given to the question of penalties. of 28 Long Term Contracts ( ) This covers building and engineering his contracts and property development contracts property or investment contracts. Strictly, profits will not arise for tax Strictly, purpose unti...
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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.

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