Hi,
Can business (company in my case) use a different basis between income tax and GST ?
For example, the company accounts GST in cash basis but can it use accrual basis when preparing income tax ?
Thanks.
If you are a small business - you should be able to choose between cash or accruals for GST - see here.
For income tax purposes, it's based on whether the amount has been derived. This is depends on the facts and circumstances around the business. For income see TR 98/1. Gotta love Arthur Murray for being the leading case on this one.
For deductions the starting point is s8-1 and the concept of when an expense has been incurred - see TR 94/26.
If you are still having trouble, might be useful to consult your accountant / tax professional.
If you are a small business - you should be able to choose between cash or accruals for GST - see here.
For income tax purposes, it's based on whether the amount has been derived. This is depends on the facts and circumstances around the business. For income see TR 98/1. Gotta love Arthur Murray for being the leading case on this one.
For deductions the starting point is s8-1 and the concept of when an expense has been incurred - see TR 94/26.
If you are still having trouble, might be useful to consult your accountant / tax professional.
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