INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-25 - TRADING STOCK  

Division 70 - Trading stock  

Subdivision 70-A - What is trading stock  

SECTION 70-10   Meaning of trading stock  

70-10(1)  


Trading stock includes:


(a) anything produced, manufactured or acquired that is held for purposes of manufacture, sale or exchange in the ordinary course of a *business; and


(b) *live stock.

70-10(2)  


Trading stock does not include:


(a) a * Division 230 financial arrangement; or


(b) a * CGT asset covered by section 275-105 that:


(i) is owned by a * complying superannuation fund, a * complying approved deposit fund or a * pooled superannuation trust; or

(ii) is a * complying superannuation asset of a * life insurance company.
Note 1:

Shares in a PDF are not trading stock. See section 124ZO of the Income Tax Assessment Act 1936 .

Note 2:

If a company becomes a PDF, its shares are taken not to have been trading stock before it became a PDF. See section 124ZQ of the Income Tax Assessment Act 1936 .


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