Section 21. Basis period of a person other than a company. (INCOME TAX ACT 1967

INCOME TAX ACT 1967 (ACT 53)
PART III - ASCERTAINMENT OF CHARGEABLE INCOME
Chapter 2-Basis years and basis periods

Section 21. Basis period of a person other than a company.

[Subs. Am. Act A1093:s.4]

(1) Except as provided in this section, the basis year for a year of assessment shall constitute, in relation to a source of a person, the basis period for that year of assessment.

(2) Subject to subsections (5), where a person has made up the accounts of his business for a period of twelve months ending on a day other than 31 December in the basis year, then, that period shall constitute the basis period for that year of assessment for the source consisting of that business.

[Am. Act A1093:s.4]

(3) Where a person has made up the accounts of his business for a period of twelve months ending on a day other than 3 1 December and there is a failure to make up the accounts of the business ending on the corresponding day in the following basis year, the Director General may direct that the basis period for the year of assessment in which the failure occurs, or the basis periods for that year and the following year of assessment, shall consist of a period or periods (which may be of any length) as specified in the direction.

(4) Subject to subsections (5), where a person commences a business on a day in a basis year and makes up the accounts of his business for a period of twelve months ending on a day other than 31 December, then, there shall be no basis period in relation to the business for the first year.

[Am. Act A1093:s.4]

(5) Where a person becomes a partner in an existing partnership or a partner of a person who is carrying on a business as a sole proprietor in a basis year and the accounts of the business of the existing partnership or of the business of the sole proprietor have been made up for its normal accounting period, the period which begins from the day the person becomes a partner until the end of the accounting period of the business shall constitute, for that business of that person, the basis period for a year of assessment.

[Subs. Am. Act A1093:s.4]

(6) (Repealed by Act A1093:s.4)

(7) In subsection (4) , references to a person commencing to carry on a business shall be construed only as references to cases where the person in question commences to carry on-

(a)

his own business; or

(b)

the business of another person, being a business not previously carried on by that other person or his agents.

[Subs. Am. Act A1093:s.4]

(8) In this section, "person" does not include a company.

[Ins. Am. Act A1093:s.4]

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[Shall have effect for the year of assessement 2004 and subsequent years of assessment]

Section 21. Basis period of a person other than a company, trust body or co-operative society.

The basis year for a year of assessment shall constitute, in relation to a source of a person other than a company, trust body or co-operative society, the basis period for that year of assessment.

[Subs. Act A1151:s.2]

Related reading:
[Act A1093:s.4]