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Taxation Determination

TD 96/45A - Addendum

Income tax: where a wholesaler's account for trading stock provides a retailer with a prompt payment discount which can be accumulated in an account, applied to the acquisition of new shares or transferred to an affiliated person or persons or company:

•
can the retailer claim a deduction for the full purchase price; and
•
is the discount assessable?

Addendum

This Addendum amends Taxation Determination TD 96/21 to reflect the changes to the law caused by the repeal of inoperative provisions.

TD 96/45 is amended as follows:

1. Paragraph 2

Omit 'subsection 51(1) of the Income Tax Assessment Act 1936 (the Act)'; substitute 'section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)'.

2. Paragraph 3

Omit 'pursuant to subsection 25(1) of the Act'; substitute 'under section 6-5 of the ITAA 1997'.

3. Paragraph 4

Omit 'in accordance with section 19 of the Act' with 'under subsection 6-5(4) of the ITAA 1997'.

4. Legislative references

Omit the references; substitute 'ITAA 1997 6-5; ITAA 1997 6-5(4); ITAA 1997 8-1'

This Addendum applies on and from 14 September 2006.

Commissioner of Taxation
16 June 2010

References

ATO references:
NO 1-1VL9O5Q

ISSN 1038 - 8982

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