current year basis

A drop in income in excess of 15% during the Session can be countered by reassessment on a current year basis.

The current year basis is simple: the current complex opening and closing provisions disappear, as does the necessity to submit continuation elections on any partnership change.

The new consultative document develops the concept of the current year basis of assessment and has dropped the alternative accounting period basis that was previously considered.

The director of a company paying Schedule E income tax does so on a current year basis under the PAYE system.

The new proposals are that individuals should be taxed on all their income on a common current year basis and taxpayers who are sent returns could choose whether to assess themselves.

The current year basis of assessment is not an actual basis of assessment unless a 31 March year end is selected, and therefore tax retentions will remain complex to calculate.

State officials say any tax increase because of budget increases will be cushioned for Jersey City residents by an expected reduction in administrative costs and a provision in the intervention law that enables state aid to be distributed to takeover districts on a current year basis, rather than a prior year one.