Basis Period - Cessation of business
Like business commencement, business
cessation is largely a question of facts. Usually, the Revenue adopts the day
declared as such in the taxpayer's notification to Business Registration Office.
Sometimes disputes arise on this
question. Again, the question of whether a business ceases or when it ceases
depend on the circumstances of each case. As a general rule, we may look to
whether actions are done to close down the business --- such actions include
disposal of stock without replenishment, sale of capital assets, death of a
Click the following cases if you want to
The basis period for the year of
business cessation depends on whether the business started after 1 April 1974 or
Click here for an
illustration showing how basis period is determined for businesses started after
1 April 1974.
Click here for an illustration showing
how basis period is determined for businesses started before 1 April 1974.