Revenue Tax audits

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Is tax to be paid on the basis of work done or payments received ?
Is the tax payer entitled to know on what basis they have been selected for a revenue audit ?
 
Q1 - Not exactly sure what you mean

Q2 - Taxpayer has no right to be told why he was chosen although Revenue official will tell you it was random if you ask
 
Is tax to be paid on work done or money received? I apologise for my lack of clarity when posing the original question.
If my fee for doing a particular job which may take 3 years is 3600, and if the payment is made to me at day 1 is the tax payable on the whole 3600 in the accounts for year 1? If it is ,am I overpaying my tax as the job /procedure has not been completed
On the other hand if the client only pays the fee of 3600 in year 3 is there any tax liability for year 1 and 2 ?
 
The accruals basis (eg recognise profit as work is done) is a fundamental concept of accounting and Revenue would expect it to be reflected in accounts submitted to them.

If your query refers to an actual Revenue audit situation then you need professional advice on its implications.
 
ubiquitous said:
The accruals basis
Click to expand...
Definition: Accruals basis of accounting

If you account on an accruals basis, you include all income you have received and any income you have issued an invoice for in the income year. You include expenses once you have received an invoice or paid for any part of them, whichever occurs first.
 
I moved into a new building - location for my practice a few years ago . Is it acceptable to write off the depreciation on expensive air conditioning units which were fitted?
 
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