Article 15 - Accounting Profit

(1) The Accounting Profit of a QFC Entity is the profit, including any capital profits, before the payment of tax and dividends as reflected in the QFC Entity's profit and loss account or income statement, based on accounts prepared in accordance with GAAP and the laws of the QFC.
(2) Subject to Article 15(3), for the purposes of this Article accounts prepared in accordance with GAAP means—
(a) accounts prepared in accordance with IFRS, UK GAAP or US GAAP; or
(b) accounts prepared in accordance with standards issued by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).
(3) A QFC Entity may apply to the Tax Department to use, for the purposes of corporation tax, a basis of accounting different to that set out in Article 15(2).
(4) An application under Article 15(3) shall—
(a) be in writing;
(b) be submitted to the Tax Department prior to the start of the Accounting Period to which it relates;
(c) set out the reasons why the QFC Entity wishes to use a different basis of accounting; and
(d) provide details of the basis of accounting the QFC Entity wishes to adopt.
(5) The Tax Department shall, within 60 days of receiving an application under Article 15(3), notify the QFC Entity of its decision in writing.
(6) If the Tax Department fails to issue a notice under Article 15(5) within 60 days of receiving an application under Article 15(3) the like consequences shall ensue as would have ensued if the Tax Department had, within 60 days of the application being received, issued a notice under Article 15(5) accepting the application.
(7) Where it is necessary, in order to arrive at the Accounting Profit for any Accounting Period, to apportion to specific Accounting Periods the Accounting Profit for any period for which the accounts of a QFC Entity have been made up, it shall be lawful to make such an apportionment in proportion to the number of days in the respective periods.
Amended (as from 18th June 2014)