Income Tax (Adjustment for Change of Basis of Computing Profit, Loss or Expense of Financial Instruments resulting from FRS 109 or SFRS(I) 9) Regulations 2020
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Income Tax (Adjustment for Change of Basis of Computing Profit, Loss or Expense of Financial Instruments resulting from FRS 109 or SFRS(I) 9) Regulations 2020
Status:
Not current version (version history — see timeline)
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Income Tax (Adjustment for Change of Basis of Computing Profit, Loss or Expense of Financial Instruments resulting from FRS 109 or SFRS(I) 9) Regulations 2020
Status:
Not current version (version history — see timeline)
Transition from other tax treatment to tax treatment under section 34AA of Act
4.—(1) This regulation applies to a qualifying person that is not a qualifying person under section 34A of the Act for the year of assessment immediately before the initial year of assessment.
(2) The amount of any profit or loss in respect of any financial instrument on revenue account of the qualifying person on the date of initial application (called in this regulation the specified amount) is computed using the formula specified in the second column of the Schedule opposite the description in the first column of that Schedule to which the financial instrument belongs.
(2A) Where the financial instrument on revenue account of the qualifying person is not an instrument mentioned in the first column of the Schedule, the specified amount in respect of that financial instrument is computed on a basis that the Comptroller considers reasonable in the circumstances.
[S 180/2020 wef 03/01/2020]
(3) Where the specified amount computed in accordance with paragraph (2) or (2A) is a positive amount, the specified amount is treated as income of the qualifying person for the initial year of assessment.
[S 180/2020 wef 03/01/2020]
(4) Where the specified amount computed in accordance with paragraph (2) or (2A) is a negative amount, an amount equal to the specified amount expressed as a positive amount is to be allowed as a deduction against the qualifying person’s income for the initial year of assessment.