Income Tax Assessment Act 1997



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  

This subsection applies to each item of *trading stock that the body disposes of to the company because the body ceases to exist.


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.

The company is taken to have held the item as *trading stock when it bought the item.


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