Lecture Notes on Tax Accounting Principles

Flashcards on Tax Accounting Principles covering definitions pertinent to taxation, assessment years, and expense classifications.

Year of Assessment (YOA)

The income tax year in which taxes are levied and collected, typically corresponding to the fiscal year from January 1st to December 31st.

Basis Period

The period by reference to which the assessable income of a person is computed, defining the income to assess in a particular year or YOA.

Allowable Expenses

Expenses that can be deducted from assessable income according to taxation regulations.

Disallowable Expenses

Expenses that cannot be deducted from assessable income, often due to regulations or non-relevance to business operations.

Chargeable Income

The total income that is subject to tax after deducting allowable expenses.

Preceding Year Basis

A taxation system where taxes are assessed a year later, where income must be earned in the year immediately preceding the year of assessment.

Current Year Basis

A taxation system where the year of assessment corresponds to the same twelve-month period as the basis period for tax purposes.

Accounting Year Basis

A taxation system where income is subject to tax based on the taxpayer's accounting year rather than the calendar year.

Fiscal Year

The financial year for the government, within which the year of assessment typically falls.

Assessable Income

The income amount calculated after accounting for allowable deductions, used for tax purposes.