Section 29 (4) of CITA has rules for preparing the tax returns of a company that has permanently ceased to carry on trade or business in Nigeria. At cessation, the two basis periods for determining the assessable profits are the ultimate year and penultimate year. Ultimate year is also known as the year of cessation.

What is preceding year basis tax?

Quick Reference. A basis for assessing profits in which the assessment in any given fiscal year is based on the accounts that ended during the previous tax year.

What is accounting change date?

i) The assessment year in which the accounting date becomes different from the date of the earlier years. This is known as the year when the change occurred. ii) The next two years of assessment following that in which the change occurred. In practice, calculations are made on both the old and new dates.