Section 122E: Application to compute net income on cash basis

122E. Application to compute net income on cash basis (1) Notwithstanding this Act but subject to this section, a small enterprise may apply to the Director-General, in such form and manner as the Director-General may determine for the net income of its business to be computed on cash basis instead of accrual basis. (2) Where a small enterprise applies under section 27E of the Value Added Tax Act to operate the VAT annual accounting system on a cash basis, it shall be considered to have also applied to compute the net income of its business on a cash basis. (3) Where the application of a small enterprise under subsection (1) has been approved, the small enterprise shall compute the net income of its business on cash basis as from such date as the Director-General may approve and on such terms and conditions as may be prescribed. I5 – 75 [Issue 9] Income Tax Act (4) In this section— “small enterprise”— (a) means a person who has an annual turnover not exceeding 10 million rupees; but (b) does not include— (i) a company holding a Category 1 Global Business Licence; and (ii) a non-resident société. [S. 122E inserted by s. 24 (zb) of Act 9 of 2015 w.e.f. 1 July 2015.] PART IX – GENERAL POWERS OF DIRECTOR-GENERAL