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srilawsby aturio
As enacted
EnglishSinhala සිංහල, official PDF on documents.gov.lkTamil தமிழ், official PDF on documents.gov.lk
Contents

Part I

21. Method of accounting

Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk

(1)

Unless otherwise provided by this Act, the timing of inclusions and deductions in calculating a person’s income shall be made according to generally accepted accounting principles.

(2)

An individual shall account for income tax purposes on a cash basis in calculating the individual’s income from an employment or investment.

(3)

An individual or entity conducting business shall account for income tax purposes on an accrual basis.

(4)

A person shall account for income tax purposes the income from sources other than the sources referred to in subsections (2) and (3) on either a cash or accrual basis, whichever properly computes the person’s income.

(5)

Subject to subsections (2) and (3), the

Commissioner-General may by written notice require a person to use a particular method of accounting or may approve an application of a person to change the person’s method of accounting. The Commissioner-General shall be satisfied that the new method is necessary to properly compute the person’s income.

(6)

Where a person’s method of accounting changes, adjustments shall be made in the year of assessment following the change so that no item is omitted or taken into account more than once.

Read on from s 22

Part II

Read on from Part II

Schedules