Section 48: Method of accounting.

(1) A taxpayer’s method of accounting shall dearly reflect the taxpayer's income. (2) Subject to subsections (3) and (4), a taxpayer may account for tax purposes on a cash or accrual basis. (3) In the case of an individual or trustee, where either the taxpayer’s chargeable business income or his turnover for a year of assessment exceeds the amounts specified in paragraph 8 of the Ninth Schedule, the taxpayer shall account for business income on an accrual basis in all succeeding years of assessment. (4) A company shall account for income on an accrual basis. (5) Except for a change from the cash basis to the accrual basis required under subsection (3) or (4), a taxpayer may change his method of accounting only with the prior written permission of the Commissioner. (6) If the taxpayer's method of accounting is changed, adjustments to items of income, deduction, credit or other items shall be made in the year of assessment following the change, so that no item is omitted and no item is included more than once.