Section BD 3 — Income Tax Act 2007: Allocation of income to particular income years

BD 3 Allocation of income to particular income years Application (1) Every amount of income must be allocated to an income year under this section. General rule (2) An amount of income is allocated to the income year in which the amount is derived, unless a provision in any of Parts C or E to I provides for allocation on another basis. Interpretation of derive (3) When the time of derivation of an amount of income is being determined, regard must be had to case law, which— (a) requires some people to recognise income on an accrual basis; and (b) requires other people to recognise income on a cash basis; and (c) more generally, defines the concept of derivation. Income credited in account (4) Despite subsection (3), income that has not previously been derived by a person is treated as being derived when it is credited in their account or, in some other way, dealt with in their interest or on their behalf. Role of Part E (5) Part E (Timing and quantifying rules) contains a number of provisions that— (a) specifically modify the allocation of income or have the effect of modifying the allocation of income; or (b) allocate income as part of the process of quantifying it. Single allocation (6) An amount of income may be allocated only once. Defined in this Act: amount , income , income year , Compare: 2004 No 35 s BD 3