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




Section 21A. Basis period of a company.


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

(2) Subject to subsections (5) and (6) , where a company has made up the accounts of its operations for a period of twelve months ending on a day other than 31 December in the basis year, that period shall constitute the basis period for that year of assessment for any of its sources of income.

(3) Where a company has made up the accounts of its operations for a period of twelve months ending on a day other than 31 December and there is a failure to make up the accounts of the company 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) and (6) , where a company commences operations on a day in a basis year and makes up its accounts for a period of twelve months ending on a day other than 31 December, there shall be no basis period in relation to any of its sources of income for the first year.

(5) Where a company commences operations and-


the period which begins from the day the company commences operations until the end of the accounting period of the company shall constitute, for those operations of that company, the basis period for a year of assessment.

(6) Where a company on the day on which it commences a new operation is already carrying on one or more operations, the basis period of the existing operation or operations for a year of assessment in which that day falls shall constitute for the new operation the basis period for that year of assessment and there shall be no basis period for the new operation for the year of assessment preceding that year.

(7) In subsections (4) and (6) , references to a company commencing to carry on an operation shall be construed only as references to cases where the company in question commences to carry on-


(8) For the purposes of this section, "operations" in relation to a company means-

[Ins. Am. Act A1093:s.5]
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[Shall have effect for the year of assessement 2004 and subsequent years of assessment]

(1) Except as provided in this section, the basis year for a year of assessment shall constitute, in relation to a source of a company, trust body or co-operative society the basis period for that year of assessment.

(2) Subject to subsections (5) and (6) , where a company, trust body or co-operative society has made up the accounts of its operations for a period of twelve months ending on a day other than 31 December in the basis year, that period shall constitute the basis period for that year of assessment for any of its sources of income.

(3) Where a company, trust body or co-operative society has made up the accounts of its operations for a period of twelve months ending on a day other than 31 December and there is a failure to make up the accounts of the company, trust body or co-operative society 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) and (6) , where a company, trust body or co-operative society commences operations on a day in a basis year and makes up its accounts for a period of twelve months ending on a day other than 31 December, there shall be no basis period in relation to any of its sources of income for the first year.

(5) -

(6) Where a company, trust body or co-operative society on the day on which it commences a new operation is already carrying on one or more operations, the basis period of the existing operation or operations for a year of assessment in which that day falls shall constitute for the new operation the basis period for that year of assessment and there shall be no basis period for the new operation for the year of assessment preceding that year.

(7) In subsections (4) and (6) , references to a company, trust body or co-operative society commencing to carry on an operation shall be construed only as references to cases where the company, trust body or co-operative society in question commences to carry on-


(8) For the purposes of this section, "operations" in relation to a company, trust body or co-operative society means-

[Am. Act A1151:s.3]

Related reading:
[Act A1093:s.5]


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