Cash basis persons under the financial arrangements rules
IRD issued interpretation statement. Explaining cash basis person for financial arrangement rules.
IS 22/05: Cash basis persons under the financial arrangements rules which explains when a person can account for income and expenditure from financial arrangements on a cash basis instead of an accrual basis.
*The above article is a high-level explanation of the methods of calculation, and there may be other technicalities/rules that are applicable. The complexity of the calculations can also vary. Please reach out to us if you have specific questions regarding your situation.
Please note that the above does not constitute specific tax advice and only intends to be a general advice. If you require specific advice related to your situation, please reach out to our tax consultant using the ‘contact us’ option.
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