Recognition of Income - the Choice between the Earnings or Cash Basis

Posted: 17 Jan 2005

See all articles by Liu Hern Kuan

Liu Hern Kuan

Inland Revenue Authority of Singapore

Abstract

This article attempts to introduce and examine generally the taxpayer's choice between the two basic ways of income recognition for the purposes of tax accounting (the preparation of accounts for tax purposes). In Singapore taxpayers are assessed on an earnings basis and the Revenue does not recognise computation of income on a cash basis. However, there are no cases touching on this point. This article will examine whether there is a place for computation of income on a cash basis in some businesses.

Keywords: Tax law, computation of income tax, cash basis, earnings basis, Singapore

JEL Classification: K34

Suggested Citation

Hern Kuan, Liu, Recognition of Income - the Choice between the Earnings or Cash Basis. Available at SSRN: https://ssrn.com/abstract=649481

Liu Hern Kuan (Contact Author)

Inland Revenue Authority of Singapore ( email )

55 Newton Road
Revenue House
Singapore, 307987
Singapore
+65 6351 2030 (Phone)
+65 6351 2077 (Fax)

HOME PAGE: http://www.iras.gov.sg

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