SARS Interpretation Note 90 Issue 3: Year of assessment of a company: Accounts accepted to a date other than the last day of a company's financial year (source: https://www.sars.gov.za/legal-intr-in-90-yoa-company-accounts-accepted-to-date-other-than-last-day-of-companys-financial-year/)
INTERPRETATION NOTE 90 (Issue 3)
DATE: 24 June 2025
ACT : INCOME TAX ACT 58 OF 1962
SECTION : SECTIONS 1(1) – DEFINITION OF “FINANCIAL YEAR” AND “YEAR OF
ASSESSMENT” AND 66(13C)
SUBJECT : YEAR OF ASSESSMENT OF A COMPANY: ACCOUNTS ACCEPTED TO
A DATE OTHER THAN THE LAST DAY OF A COMPANY’S FINANCIAL
YEAR
Preamble
In this Note unless the context indicates otherwise –
• “Companies Act” means the Companies Act 71 of 2008;
• “company” means a company as defined in section 1(1);
• “Schedule” means a schedule to the Act;
• “section” means a section of the Act;
• “TA Act” means the Tax Administration Act 28 of 2011;
• “the Act” means the Income Tax Act 58 of 1962;
• “the Commissioner” includes any employee of SARS who has the delegated
power to exercise and perform certain duties;1
• “VAT” means value-added tax; and
• any other word or expression bears the meaning ascribed to it in the Act.
All guides, interpretation notes and returns referred to in this Note are available on the
these documents should be consulted.
1. Purpose
This Note provides guidance on the application of section 66(13C) and the
discretionary power vested in the Commissioner to accept financial accounts of a
company for a period ending on a day that differs from the last day of the company’s
financial year.
The position of persons other than companies, for example, natural persons or trusts
is dealt with in Interpretation Note 19 “Year of Assessment of Persons other than
Companies: Accounts Accepted to a Date other than the Last Day of February”.
1 See section 3(1).
2. Background
A company’s year of assessment is generally its financial year.2
Companies are occasionally required to close their financial accounts earlier or later
than the last day of their financial year for various reasons. Section 66(13C) allows
companies to align reporting for tax purposes with the period ending on the day their
financial accounts are closed.
3. The law
The relevant provisions of the Act are quoted in the Annexure.
4. Application of the law
4.1 Definitions of “year of assessment” and “financial year” [section 1(1)]
The term “year of assessment” as defined in section 1(1) provides that a company’s
year of assessment is its financial year. Under section 5(1)(d), a company shall pay
income tax annually on the taxable income received by, accrued to or in favour of it
during every financial year.
The term “financial year” is also defined in section 1(1). In the case of –
• a newly incorporated company, the financial year is the period, whether of
12 months or not, commencing on the date of incorporation and ending on the
last day of February immediately succeeding that date or on any other date
approved by the Commissioner having regard to the circumstances of the case;
and
• any other company, any period subsequent to the period referred to above,
whether of 12 months or not, commencing immediately after the last day of the
immediately preceding financial year of that company and ending upon the first
anniversary of such last day or upon such other date as the Commissioner
having regard to the circumstances of the case may approve.
If, for example, a company’s financial year ends on 30 June, the Commissioner may
approve that the financial year for income tax purposes, as defined in section 1(1), also
ends on 30 June. The year of assessment is, by definition, the same as the financial
year for income tax purposes. When a company changes its financial year for
Companies Act3 purposes, the Commissioner may also approve a corresponding
change in the financial year for income tax purposes.
The Commissioner’s discretionary power under the definition of “financial year” is not
subject to the Companies Act. Accordingly, in approving a company’s financial year,
the Commissioner may, but is not obligated to, take into account the requirements of
the Companies Act and to align the financial year for income tax purposes with the
financial year for Companies Act purposes. Amongst other things, section 27 of the
Companies Act provides that –
• a company’s financial year may not exceed 15 months (this applies to its first
financial year and any subsequent financial year which is longer than
12 months as a result of a change in financial year);
2 The terms “year of assessment” and “financial year” are defined in section 1(1) – see 4.1.
3 See section 27(4) of the Companies Act.
• a company may not file a notice to change its financial year more than once
during a financial year; and
• in the case of a change in financial year, the newly established financial year-
end must be later than the date on which the notice is filed.
The Companies Act does not lay down a minimum period for a financial year.
A company incorporated on 1 February which adopts a financial year-end of the last
day of February would thus have a first financial year of one month.
Generally, the approval of a company’s first financial year does not present any
difficulty and the Commissioner will often approve the financial year adopted by the
company for purposes of section 27 of the Companies Act. In the unlikely event of a
company not specifying a financial year, its financial year will be the last day of
February.
If the Commissioner does not agree to change a company’s financial year-end for a
specific year of assessment and the financial year for income tax purposes does not
align with the financial year under the Companies Act, that company will need to draw
up separate sets of financial statements for income tax purposes and for
Companies Act purposes. Non-approval can happen, for example, if an application
carries negative consequences for the fiscus, such as a decrease in tax rates or
enhanced capital allowances. The Commissioner will approve such an application only
in exceptional circumstances or may approve it subject to the change taking effect in
the following fiscal year.
The Commissioner’s discretion in the definition of “financial year” to approve other
dates is not subject to objection and appeal.4
Section 3(1) provides that the powers conferred and duties imposed upon the
Commissioner by or under the provisions of the Act, may be exercised or performed
by the Commissioner or by any officer under the control, direction or supervision of the
Commissioner. A decision made by a SARS official or a notice to a specific person
issued by SARS under a tax Act, excluding a decision given effect to in an assessment
or a notice of assessment that is subject to objection and appeal, may in the discretion
of a SARS official listed below or at the request of the relevant person, be withdrawn or
amended by –
• the SARS official;
• a SARS official to whom the SARS official reports; or
• a senior SARS official.5
The following are examples of valid reasons for a company requesting a change in
financial year:
• A company’s operations are based on seasonal clientele. As a result, the
company has a mid-year peak followed by a period of low activity. At inception
of the company the directors set the financial year at 30 June without taking
into account the seasonal nature of the company’s business. They now want
to change the year-end to 31 October when stock levels and sales are low.
4 Section 3(4)(a) does not include the definition of “financial year”.
5 Section 9(1) of the TA Act.
The revised year-end will make stocktaking much easier as well as simplifying
accounting cut-off procedures.
• A company in the retail industry has a December financial year. The pressure
of the holiday season has resulted in an administrative burden for the company
because of elevated stock levels and the volume of transactions around year-
end. The company applies to change its financial year to the last day of
February.
Example 1 – Rejection of change in financial year
Facts:
In the Budget Speech on 21 February 20x2 the Minister announced that the corporate
tax rate would decrease from 28% to 27% for companies with years of assessment
ending between 1 April 20x2 and 31 March 20x3.
On 22 February 20x2 Company A applied to the Commissioner to change its financial
year from 28 February 20x2 to 30 April 20x2 citing various commercial reasons, none
of which involved exceptional circumstances.
Result:
Since there were no exceptional circumstances justifying the application and in view
of the negative consequences for the fiscus, SARS notified the company that its
request could not be accepted. Company A was given the option of changing its
financial year-end to 30 April 20x3 (that is, its first amended financial year would run
from 1 March 20x2 to 30 April 20x3, a period of 14 months).
4.2 Financial accounts drawn up for a period that differs from the financial year
[section 66(13C)]
Section 66(13C) provides that if a company does not close its financial accounts on
the last day of its financial year, the Commissioner may accept the financial accounts
in respect of its income drawn to a fixed day approved by the Commissioner. Such a
request should be submitted to the Commissioner within a reasonable period before
the last day of the company’s financial year. The fixed day must fall within 10 days
before or after the last day of the financial year. The Commissioner may approve the
following as a fixed day:
• A fixed day, being a specific day of the week.
• A fixed date, being a specific date in a calendar month.
The Commissioner’s discretionary powers under section 66(13C) are not subject to
objection and appeal.6 Section 9(1) of the TA Act applies similarly to the consideration
(see 4.1) on the Commissioner’s discretion in the definition of “financial year” to
approve other dates.
6 See section 3(4)(b) which does not include section 66(13C).
The day that a company may choose to close off its financial accounts other than on
the last day of the company’s financial year and within the 10 day requirement, is
illustrated below:
Financial year-end 10 days before 10 days after
31 January 21 – 30 January 1 – 10 February
18 – 27 February or
28 or 29 February 1 – 10 March
19 – 28 February
31 March 21 – 30 March 1 – 10 April
30 April 20 – 29 April 1 – 10 May
31 May 21 – 30 May 1 – 10 June
30 June 20 – 29 June 1 – 10 July
31 July 21 – 30 July 1 – 10 August
31 August 21 – 30 August 1 – 10 September
30 September 20 – 29 September 1 – 10 October
31 October 21 – 30 October 1 – 10 November
30 November 20 – 29 November 1 – 10 December
31 December 21 – 30 December 1 – 10 January
The term “income” is defined in section 1(1) but the defined term is not used for
purposes of section 66(13C).7 For the purpose of section 66(13C), “income” is
interpreted as “taxable income”. This interpretation is necessary to ensure that any
deductions and allowances included in the financial accounts of a company are
allocated to the correct year of assessment.8 In addition, section 66(13B) provides that,
for purposes of section 66(13C), income includes any aggregate capital gain or
aggregate capital loss (see below).
Section 66(13C)(b) provides that when financial accounts are drawn to a date after the
last day of the company’s financial year, no further regard shall be had in the
subsequent year of assessment to the income disclosed by those financial accounts.
Similarly, a company that closes its financial accounts on a day within 10 days before
the last day of its year of assessment must account for any income falling after that
fixed day in the financial accounts in the subsequent year of assessment.
7 The introductory words to section 1(1) states that “unless the context otherwise indicates” the listed
terms have its defined meaning.
8 For similar reasons, in CIR v Simpson 1949 (4) SA 678 (A), 16 SATC 268 at 282 Watermeyer CJ
held “income” must be construed as meaning “profits or gains” which would be arrived at after
deducting deductible expenditure in relation to the equivalent of section 7(2).
Example 2 – Accounts accepted to a date other than the last day of a financial
year
Facts:
Company B has a financial year-end of 31 December. As a result of many employees
being on leave during the last week of December and the first few days of January,
Company B applied to the Commissioner before 31 December 2024 to request
approval for it to close its accounts on 5 January going forward.
Result:
If Company B’s application to draw up financial accounts for the extended period is
approved by the Commissioner, the financial accounts for the period 1 January 2024
to 5 January 2025 will be accepted and the total amount of income disclosed by the
financial accounts will be regarded as income for the 2024 year of assessment.
Company B’s financial accounts for the 2025 year of assessment would be for
6 January 2025 to 5 January 2026. If Company B wants to change the fixed day
approved by the Commissioner for closing its accounts back to its original closing date
of 31 December, it will have to submit an application to SARS requesting the change.
Example 3 – Accounts accepted to a date other than the last day of a financial
year
Facts:
Company C has a financial year-end of 31 July. The accounting calendar used by
Company C is based on 52 full weeks with the weeks commencing on a Monday and
ending on a Sunday. The last day of Company C’s accounting calendar will always fall
on a Sunday and for the 2024 year of assessment it will specifically fall on Sunday,
4 August 2024. Company C believes that the most meaningful and accurate
comparison of sales growth can be measured on a weekly basis, from Monday to
Sunday. As a result, Company C applied to the Commissioner before 31 July 2024 for
approval to close its accounts on the last day of its accounting calendar, which is a
Sunday.
Result:
The last Sunday of Company C’s accounting calendar is a fixed day that will fall within
10 days after the last day of the financial year. If Company C’s application to draw up
financial accounts up until the last Sunday of its accounting calendar is approved by
the Commissioner, the financial accounts for the period 1 August 2023 to 4 August
2024 will be accepted and the total amount of income disclosed by the financial
accounts will be regarded as income for the 2024 year of assessment.
Capital gains and capital losses (paragraphs 6 and 7 of the Eighth Schedule)
Section 66(13B) provides that the word “income” in section 66(13C) includes any
aggregate capital gain or aggregate capital loss. The aggregate capital gain or
aggregate capital loss is determined by adding together all the capital gains and
subtracting all the capital losses on all individual assets disposed of during a specific
year of assessment and adding any other capital gains which are required to be taken
into account.9
A company’s capital gain or capital loss is determined for a year of assessment.
A capital gain will arise during a year of assessment in which an asset is disposed of
if the proceeds on its disposal exceed its base cost. A capital loss will arise if the base
cost of the asset exceeds the proceeds on its disposal. A capital gain or capital loss
can arise during the current year of assessment on an asset disposed of in a previous
year of assessment if further proceeds are received or accrued or further expenditure
is incurred during the current year of assessment on that asset.10
As considered above, section 66(13C)(b) provides that no further regard shall be had
in the subsequent year of assessment to the income disclosed by financial accounts
drawn to a date after the last day of the company’s financial year. Section 66(13C)(b)
will thus also apply to an aggregate capital gain or aggregate capital loss.11
Example 4 – Treatment of capital gains
Facts:
Company D has a financial year ending 30 September 2024 and is granted approval
under section 66(13C) to render financial accounts for the period ending 24 September
2024. During the period 1 October 2023 to 30 September 2024 the company realised
capital gains on the following assets:
• 21 August 2024 – land
• 26 September 2024 – shares
Result:
The capital gain on disposal of the land must be accounted for in the year ended
30 September 2024 (2024 year of assessment).
The capital gain on disposal of the shares must be accounted for in the year ended
30 September 2025 (2025 year of assessment).
9 Paragraphs 6 and 7 of the Eighth Schedule set out the general rules for determining an aggregate
capital gain or aggregate capital loss for a year of assessment.
10 Paragraphs 3 and 4 of the Eighth Schedule set out the general rules for determining a capital gain
or capital loss for a year of assessment.
11 See the Comprehensive Guide to Capital Gains Tax for further consideration on an aggregate
capital gain and aggregate capital loss.
4.3 Conditions for the Commissioner’s approval
The following factors will be considered before the Commissioner approves an
application:
• The compliance status of the company.12 The company must comply with the
registration requirements of all taxes,13 have no outstanding tax returns14 and
no outstanding tax debts. An outstanding tax debt will not include –
➢ an amount due under an instalment payment agreement or which has
been compromised under the TA Act;15
➢ any amount that has been suspended by a senior SARS official pending
an objection or appeal;16
➢ an amount that may not be recovered for the specific period under
section 164(6) that SARS receives a request for a suspension of debt
or a suspension is revoked;17 or
➢ an amount below R100.18
• Rendering financial accounts to a date other than the last day of a company’s
financial year-end should not have negative consequences for the fiscus (see
Example 1). The earlier closure of financial accounts may lead to the
manipulation of income and expenditure of the company. For example, it may
result in the deferral of income derived as a result of the conclusion of a large
contract or transaction. Approval will be granted only if the Commissioner is
satisfied that the purpose of the application is not to obtain a tax benefit and
may be subject to specified conditions.
• Each application will be considered on its own merits by taking the specific
circumstances of the company into account.
• The application must be in writing and reasons detailing the special
circumstances to be taken into account must be furnished. Supporting
information and documentation must accompany the application in order for the
Commissioner to make an informed decision.
• The application should be submitted to a SARS service centre within a
reasonable period before the last day of the company’s financial year. Failure
to submit an application within a reasonable period may result in approval not
being granted before the end of the financial year. Such a delay will result in
the company being assessed for that year of assessment on the basis that no
application was submitted.
• A company that enjoyed past approval to change the day on which its financial
accounts are closed, may submit a further application to change the fixed day
approved by the Commissioner to another day on which it wishes to close its
financial accounts in the future. The Commissioner, however, favours the
12 Section 256(3) of the TA Act provides for the requirements of a tax compliance status.
13 Registration requirements under section 22 of the TA Act.
14 The term “return” is defined in section 1 of the TA Act. A taxpayer may arrange with SARS for the
submission of the outstanding return and will be considered compliant provided all the other
requirements are met.
15 Section 167 or 204 of the TA Act.
16 Section 164 of the TA Act.
17 Section 164(6) of the TA Act.
18 Under section 169(4) of the TA Act, SARS need not recover a tax debt if it is less than R100.
consistent reporting of results and any such application will be approved only if
sound reasons exist for the requested change.
• A company that wants to change the fixed day approved by the Commissioner
back to its original closing date for its accounts must also submit an application
to SARS requesting the change.19
4.4 Provisional tax (paragraph 23 of the Fourth Schedule)
Any company, except for those excluded under the definition of “provisional taxpayer”
in paragraph 1 of the Fourth Schedule, is a provisional taxpayer. Under paragraph 23
of the Fourth Schedule, a company must make its first provisional tax payment within
six months as from the commencement of its year of assessment and the second
provisional tax payment not later than the last day of its year of assessment.
An optional additional payment (third payment) can be made within seven months of
the end of the company’s year of assessment for companies with a financial year
ending on the last day of February or, in any other case, within six months of the end
of the year of assessment.20 This third payment will reduce the liability for any interest
which may become payable for the relevant year of assessment.21
The dates by which provisional tax payments must be made remain unchanged even
if a company is granted approval to submit financial accounts for a period which differs
from its financial year-end.
For example, a company that has been granted approval under section 66(13C) by the
Commissioner to submit financial accounts to a date other than the last day of its
financial year must submit its provisional tax return and make its second provisional
tax payment not later than the last day of the year of assessment. The estimate should
take into account the fact that accounts may be closed on a day other than the last day
of the financial year.
In the context of provisional tax, it is particularly important to note that if –
• a day notified by SARS or specified in the Act for payment, submission or other
action; or
• the last day of a period within which payment, submission or other action under
the Act must be made,
falls on a Saturday, Sunday or public holiday, the action must be done not later than
the last business day before that Saturday, Sunday or public holiday.22
19 See Example 2.
20 For more information on provisional tax, see Interpretation Note 1 “Provisional Tax Estimates”.
21 Paragraph 23A of the Fourth Schedule.
22 Section 244(1) of the TA Act.
Example 5 – Provisional tax payment dates for a company that closes its
accounts on a date other than the last day of a financial year
Facts:
Company E has a financial year-end of 31 December 2024 and is granted approval
under section 66(13C) to render financial accounts for the period ending 5 January
2025.
Result:
Company E draws up its financial accounts for the extended period 1 January 2024 to
5 January 2025. Company E is required to make its first provisional tax payment on
28 June 2024 (30 June 2024 is a Sunday) and second provisional tax payment on
31 December 2024 even though it has been granted approval to submit financial
accounts for a period which differs from its financial year-end.
The provisional tax estimate should take into account the financial accounts for the
period 1 January 2024 to 5 January 2025 and thus the total amount of income
disclosed by the financial accounts will be regarded as income for the 2024 year of
assessment.
4.5 Trading stock and livestock
4.5.1 Trading stock [section 22(6)]
Trading stock held and not disposed of at the beginning and end of a year of
assessment must be accounted for as specified under section 22. Section 22(6)(b)
provides that any reference in section 22 to the beginning or end of a year of
assessment includes a reference to the period covered by the financial accounts and
accepted by the Commissioner under section 66(13C).
It follows that when financial accounts are accepted by the Commissioner to a date
other than the last day of the year of assessment, section 22(6)(b) requires that trading
stock must be accounted for at the beginning and end of the period covered by those
financial accounts.
4.5.2 Livestock [paragraph 1(a) of the First Schedule]
Section 22 does not apply to farming. Paragraph 1(a) of the First Schedule contains a
provision similar to section 22(6) for the purposes of determining the dates when
opening and closing stock of livestock and produce on hand must be accounted for by
a farmer.
4.6 Effective dates of legislation
Generally, effective dates of income tax legislation take two forms, namely –
• an effective date that is linked to the timing of a transaction (for example, the
timing of a receipt or accrual, incurral of expenditure or disposal of an asset);
or
• an effective date that applies to a year of assessment.
Companies applying section 66(13C) should have regard to changes in legislation that
occur outside a year of assessment but within the period that the financial accounts
are drawn up. The wording of the relevant effective date provision will determine how
legislative changes will affect a particular transaction. As a result, it is not possible to
lay down definite rules for dealing with such changes.
Effective dates applicable to a transaction date are unaffected by the fact that the
results for the period that the financial accounts are drawn up are taken back to an
earlier year of assessment or carried forward to a future year of assessment.
Example 6 – Change in legislation applicable to a transaction date
Facts:
Company F has a financial year ending on 30 June. It is granted approval under
section 66(13C) to render financial accounts up until 5 July 2024.
On 3 July 2024, Company F incurred an expense in relation to its trade. The section
governing the deductibility of the expense was withdrawn with effect from 30 June
2024 and applied to any expenditure incurred on or after that date.
Result:
The expenditure will not be deductible because the transaction took place after the
effective date of the amendment (30 June 2024) which applies to all transactions on
or after that date.
An effective date that applies to a year of assessment can, however, apply to a
transaction conducted before or after the year of assessment if it falls within the period
that the financial accounts are drawn up and the results for that period are carried
forward or back to the year of assessment in question.
Example 7 – Change in legislation applicable to a year of assessment
Facts:
Company G has a financial year ending on 31 December. It is granted approval under
section 66(13C) to render financial accounts up until 8 January 2025.
On 5 January 2025 Company G received income in relation to its trade. The section
governing the exemption of that income from normal tax was inserted with effect from
1 January 2025 and applicable to years of assessment commencing on or after that
date.
Result:
Under section 66(13C) the income received must be accounted for in the year of
assessment ending 31 December 2024.
The income will not be exempt from normal tax because the amendment applies to
years of assessment commencing on or after 1 January 2025. The income earned on
5 January 2025 is included in Company G’s year of assessment ending on
31 December 2024 which commenced on 1 January 2024.
5. Tax period for value-added tax
A company registered or required to be registered as a vendor23 is allocated a specific
tax period for which the output tax and input tax is declared and the difference between
them is calculated and either paid to or refunded by SARS for that specific tax period.
The closure by a company of its financial accounts on a day other than the last day of
its financial year will not have any impact on its VAT liability for any tax period.
A vendor is required to submit VAT 201 returns and account for VAT to SARS
according to the tax periods allocated to the vendor by the Commissioner. However,
paragraph (ii) of the proviso to section 27(6) of the VAT Act 89 of 1991provides for the
Commissioner to allow a tax period to end on a fixed day instead of the last day of the
month. The fixed day must fall within 10 days before or after the last day of a month
and the future tax period approved by the Commissioner must be used by the vendor
for a minimum period of 12 months from the commencement of the first tax period for
which the change is made.
For more information on the different tax periods, see Interpretation Note 52 “Approval
to End a Tax Period on a Day other than the Last Day of a Month”.
6. Conclusion
A company intending to close its financial accounts either within 10 days before or after
the end of a year of assessment must submit an application to a SARS service centre
for approval to draw up financial accounts to a closing date other than the end of its
financial year.
Section 66(13C) relates only to a situation in which a company obtains approval from
the Commissioner to close its accounts on a date other than the last day of its financial
year. This approval does not result in a change in the company’s financial year-end
and therefore does not change its year of assessment.
Leveraged Legal Products
SOUTH AFRICAN REVENUE SERVICE
23 As defined in section 1(1) of the VAT Act 89 of 1991.
Annexure – The law
Section 1(1)
1. Interpretation.—(1) In this Act, unless the context otherwise indicates—
“company” includes—
(a) any association, corporation or company (other than a close corporation) incorporated
or deemed to be incorporated by or under any law in force or previously in force in the
Republic or in any part thereof, or any body corporate formed or established or deemed
to be formed or established by or under any such law; or
(b) any association, corporation or company incorporated under the law of any country
other than the Republic or any body corporate formed or established under such law; or
(c) any co-operative; or
(d) any association (not being an association referred to in paragraph (a) or (f)) formed in
the Republic to serve a specified purpose, beneficial to the public or a section of the
public; or
(e) any—
(i) . . . . . .
(ii) portfolio comprised in any investment scheme carried on outside the Republic that
is comparable to a portfolio of a collective investment scheme in participation bonds
or a portfolio of a collective investment scheme in securities in pursuance of any
arrangement in terms of which members of the public (as defined in section 1 of the
Collective Investment Schemes Control Act) are invited or permitted to contribute
to and hold participatory interests in that portfolio through shares, units or any other
form of participatory interest; or
(iii) portfolio of a collective investment scheme in property that qualifies as a REIT as
defined in the listing requirements of an exchange approved in consultation with the
Minister and published by the Prudential Authority, as defined in section 1 of the
Financial Markets Act, in terms of section 11 of that Act; or
(f) a close corporation,
but does not include a foreign partnership;
“financial year”, in relation to any company, means—
(a) the period, whether of 12 months or not, commencing upon the date of incorporation or
creation of such company and ending upon the last day of February immediately
succeeding such date or upon such other date as the Commissioner having regard to
the circumstances of the case may approve; or
(b) any period subsequent to the period referred to in paragraph (a), whether of 12 months
or not, commencing immediately after the last day of the immediately preceding financial
year of such company and ending upon the first anniversary of such last day or upon
such other date as the Commissioner having regard to the circumstances of the case
may approve;
“year of assessment” means any year or other period in respect of which any tax or duty leviable
under this Act is chargeable, and any reference in this Act to any year of assessment ending the last or
the twenty-eighth or the twenty-ninth day of February shall, unless the context otherwise indicates, in
the case of a company or a portfolio of a collective investment scheme in securities be construed as a
reference to any financial year of that company or portfolio ending during the calendar year in question.
Section 5(1)(d)
5. Levy of normal tax and rates thereof.—(1) Subject to the provisions of the Fourth Schedule
there shall be paid annually for the benefit of the National Revenue Fund, an income tax (in this Act
referred to as the normal tax) in respect of the taxable income received by or accrued to or in favour
of—
(d) any company during every financial year of such company.
Section 22(6)(b)
22. Amounts to be taken into account in respect of values of trading stocks. —
(6) Any reference in this section to the beginning or end of a year of assessment includes—
(b) where accounts are accepted under section 66 (13A) or (13C) to a date agreed to by
the Commissioner, a reference to the beginning or end, as the case may be, of the
period covered by the accounts.
Section 66(13B) and (13C)
(13B) For the purposes of subsections (13A) and (13C), the word “income” must be construed
as including any aggregate capital gain or aggregate capital loss.
(13C) Where—
(a) a company does not close its accounts on the last day of its financial year, the
Commissioner may accept accounts in respect of the taxpayer’s income drawn to a fixed
day approved by the Commissioner, which day shall fall within 10 days before or after
the last day of the financial year;
(b) such accounts are drawn to a date later than the last day of the year of assessment, no
further regard shall be had to the income disclosed by those accounts for purposes of a
subsequent year of assessment.
Paragraph 23 of the Fourth Schedule
23. Provisional tax shall be paid by every company which is a provisional taxpayer in the following
manner, namely—
(a) within the period ending 6 months after the commencement of the year of assessment
in question, one half of an amount equal to the total estimated liability of such company
(as determined in accordance with paragraph 17) for normal tax in respect of that year;
(b) within the period ending on the last day of that year, an amount equal to the total
estimated liability of such company (as so determined) for normal tax in respect of that
year less the amount paid in terms of item (a),
(c) ......
less, in either case, the total amount of—
(i) any employees’ tax deducted by the taxpayer’s employer from the taxpayer’s remuneration
during the relevant period; and
(ii) any tax proved to be payable to the government of any other country which will qualify as a
rebate under section 6quat.
Paragraph 6 and 7 of the Eighth Schedule
6. Aggregate capital gain.—A person’s aggregate capital gain for a year of assessment is the
amount by which the sum of that person’s capital gains for that year and any other capital gains which
are required to be taken into account in the determination of that person’s aggregate capital gain or
aggregate capital loss for that year, exceeds the sum of—
(a) that person’s capital losses for that year; and
(b) in the case of a natural person or a special trust, that person’s or special trust’s annual
exclusion for that year.
7. Aggregate capital loss.—A person’s aggregate capital loss for a year of assessment is the
amount by which the sum of a person’s capital losses for the year exceeds the sum of—
(a) that person’s capital gains for that year and any other capital gains which are required
to be taken into account in the determination of that person’s aggregate capital gain or
aggregate capital loss for that year; and
(b) in the case of a natural person or a special trust, that person’s or special trust’s annual
exclusion for that year.
Diamond Export Levy Act, 2007
