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Section 55

Books and accounts. 

(1) Where a person appearing to be chargeable with tax fails or refuses to keep books or accounts which, in the opinion of the Commissioner are adequate for the purpose of computing tax, the Commissioner may, by notice in writing, require that person to keep the records, books, and accounts, and to keep them in the language, specified in the notice.

(2) A person carrying on a business shall preserve every book of account, and every document which is essential to the explanation of any entry in any book of account, relating to the business for a period of not less than ten years after the year of income to which that book of account or document relates:
Provided that, subject to section 56, this section shall not require the preservation of a document or book of account -
(i) in respect of which the Commissioner has notified that person in writing that its preservation is not required; or
(ii) in the case of a company which has gone into liquidation and has been finally dissolved or in the case of the cessation of a business other than one carried on by a company, for more than three months after the date on which the person having custody of the documents or books of account relating to the company or business as the case may be, informs the Commissioner that he proposes to destroy them.

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