Farming - profile to accounts
05/11/1996
Query
Can a farmer who has been on the profile basis change to the accounts basis in his final year of trading?
Decision
Yes. However a charge under Section 94(1) is likely to arise in respect of sums arising from the carrying on of the trade prior to the changeover which are not brought into the accounts in computing the profits of the trade.
Income Tax
Section 94, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:IT963526