Deferring assessable income

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      nIncome received in advance of services beingnprovided is generally not assessable until the services are provided.

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      nTaxpayers who provide professional services maynconsider, in consultation with their clients, rendering accounts after 30 Junenin order to defer the income.

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      nA taxpayer is required to calculate thenbalancing adjustment amount resulting from the disposal of a depreciatingnasset. If disposal of an asset will result in assessable income, the taxpayernmay consider postponing the disposal to the following income year.

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      nRollover relief may be available for balancingnadjustments arising from an involuntary disposal of assets where replacementnassets are acquired.

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Important: Clients should not act solely on the basis of the material contained in Update. Items herein are general comments only and do not constitute or convey advice per se. Also, changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. This update is issued as a helpful guide to clients and for their private information.

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