Income Tax Assessment Act 1997



Division 70 - Trading stock  

Subdivision 70-B - Acquiring trading stock  

SECTION 70-20   70-20   Non-arm ' s length transactions  


(a) you incur an outgoing that is directly attributable to your buying or obtaining delivery of an item of your *trading stock; and

(b) you and the seller of the item did not deal with each other at *arm ' s length; and

(c) the amount of the outgoing is greater than the *market value of what the outgoing is for;

the amount of the outgoing is instead taken to be that market value. This has effect for the purposes of applying this Act to you and also to the seller.


This section also affects the value of the item of trading stock at the end of an income year if you value it at its cost under section 70-45 (Value of trading stock at end of income year).


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