2012 Unit 5 Profit computation - s

It appears that ird will tax interest from time it

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Unformatted text preview: nterest from time It deposits by treating the interest as accruing from day to day. Note that bank interest income is now exempt. Note 11 Cash Basis Cash The assessable profits of a The assessable profits of a self-practising barrister self-practising barrister can be calculated on a cash can be calculated on a cash basis basis.. 12 Deposits and Unclaimed Balances Deposits Deposits paid by customers as part paid payment cannot be brought into trading payment receipts until the goods or services have been delivered / rendered. been However if the service or sale contract is However subsequently cancelled, any nonsubsequently any nonrefundable receipts have to be brought into account. 13 Con’t Likewise unclaimed balances can be Likewise unclaimed brought into account if the customers are no longer able to claim them no (Jays, the Jewellers Ltd v. CIR (1947) (Jays, 29 TC 274). 29 14 Valuation of Trading Stock & Valuation Work in Progress Work Apart from the case of cessation, there is no Apart cessation there no provision in the IRO on the valuation of trading stock for tax purpose. There is a no. of court cases on stock valuation...
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