. Accounting Period and Method
Sec. 43 of the Tax Code – (Accounting Period) Calendar year or fiscal year;
• Prerogative of taxpayer;
• Use calendar method when –
o Accounting period is other than fiscal year; or
o No annual accounting period; or
o Does not keep books of accounts; or
o Individual taxpayer
Sec. 44 – (Accounting Method) Period in which items of gross income included;
• For the taxable year when received, either actual or constructive (Cash or Accrual basis); unless
under other methods of accounting permitted;
• In case of the death, income up to the date of his death;
Sec. 45 – (Accounting Method) Period for which deductions (expenses) and credits taken;