Income Tax Assessment Act 1936

SCHEDULE 2D - TAX EXEMPT ENTITIES THAT BECOME TAXABLE  

Division 57 - Tax exempt entities that become taxable  

Subdivision 57-L - Trading stock  

SECTION 57-115   MODIFICATION OF TRADING STOCK PROVISIONS  

57-115(1)    
For the purposes of applying Division 70 of the Income Tax Assessment Act 1997 in relation to the transition year, the only trading stock of the transition taxpayer that is to be taken into account under section 70-35 of that Act as being on hand at the beginning of the transition year is such trading stock as was on hand at the transition time.

57-115(2)    
For the purpose of working out the value at which the trading stock is to be taken into account, the year of income preceding the transition year is taken to have ended immediately before the transition time.

Note:

The value of trading stock on hand at the beginning of the transition year will, under section 70-40 of the Income Tax Assessment Act 1997, be the same as at the end of the preceding year of income.

57-115(3)    
If:

(a) the basis of valuation of the trading stock at the end of the transition year is cost; and

(b) the basis of valuation at the beginning of the transition year is different;

then, for the purposes of the valuation at the end of the transition year, the cost of the trading stock for the purposes of Division 70 of the Income Tax Assessment Act 1997 is taken to be equal to the value at which it was taken into account at the beginning of the transition year.