Page 74 - Test 1 Slides - 4. Gross Income
P. 74
GROSS INCOME
Year of Assessment
• This criterion is implied in the definition because tax payable is
calculated on an annual basis, therefore we need to decide into
which "tax year" an amount of income will fall.
• This could have implications if the rate of tax were to change.
• A company's year of assessment is the same as its financial year.
For example, if the company's financial year end is on 31 March
2017, then the year of assessment will be 1 April 2016 to 31
March 2017.
• Only an amount received or accrued in a particular year of
assessment will be included in gross income for that year of
assessment.
• This criterion is generally a matter of fact and very few court
cases have dealt with it.
74
