INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-80 - ROLL-OVERS APPLYING TO ASSETS GENERALLY  

Division 620 - Assets of wound-up corporation passing to corporation with not significantly different ownership  

Subdivision 620-A - Corporations covered by Subdivision 124-I  

Consequences for trading stock

SECTION 620-40   Body taken to have sold trading stock to company  

620-40(1)  
This subsection applies to each item of *trading stock that the body disposes of to the company because the body ceases to exist.

620-40(2)  


The body is taken to have sold, and the company is taken to have bought, the item (in the ordinary course of *business and dealing with each other at *arm ' s length), at the time of the disposal (or just before that time if the disposal occurred when the body ceased to exist), for:


(a) the *cost of the item for the body; or


(b) if the body held the item as *trading stock at the start of the income year, the *value of the item for the body then.

620-40(3)  
The company is taken to have held the item as *trading stock when it bought the item.


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