1. Background.
   Employment income is assessable on an accrual basis ; that is, over the period it has been earned and become due for payment.
2. Deemed Income
   Where an amount is received in respect of employment or a service rendered in a year of income different from the year of accrual. It is deemed to be for the year of accrual.
   
   However where the year of accrual is earlier than 4 years prior to the year of receipt, the income is to be treated as that of year of income which expired 5 years prior to the year in which the income is received or prior to the year of income in which employment ceased. (s.5(2)(a)(i))
3. Service gratuity
   This amount is to be spread backwards and taxed together with income earned in the relevant years.
4. Notice pay
   Notice pay is assessable in the period immediately after date of leaving employment.
5. Pay in lieu of leave
   should be taxed in the year to which the leave days relate.
6. Specified term contract(s.5(2)(c))
   Where there is a specified term contract, the amount of the compensation will be spread over the unexpired period at equal amounts and taxed.
7. unspecified term contract(s.5(2)(c))
   Where the contract is for unspecified term and does not provide for terminal payment, the compensation is to be spread forward in equal amounts for three years.
8. Leave payment is taxable in the year it was earned.
9. Life Insurance Premiums (s.5(2)(f))
   an amount paid by an employer as a premium for an insurance on the life of his employee or any of his dependants other than such an amount paid to a registered or unregistered pension scheme, pension fund or provident fund