Taxation Ruling

IT 2659

Income tax: value of goods taken from stock for private use

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FOI status:

May be releasedFOI number: I 1012924

RULING

Taxation Rulings Nos IT 2174, IT 2421 and IT 2580 provided schedules of amounts that might be expected to be returned for income tax purposes for goods taken from stock for private use, by the proprietors of those types of businesses listed in the Rulings. These amounts applied to assessments made in respect of the income years ended 30 June 1986 to 1990.

2. The amounts listed in the schedule in IT 2580 may be used as a guide to the values of goods ex-stock that could be expected to be taken into account in determining taxable incomes for the year ended 30 June 1991. Those values are reproduced in a schedule to this Ruling. The values should be brought to account either by inclusion in sales or by deduction from purchases. This Ruling recognises the fact that in many cases it is difficult for accurate records to be kept of transactions involving goods taken from stock for private use.

3. It is also recognised that greater or lesser values may be appropriate in particular cases. Taxpayers may be able to justify a lower value for goods taken from stock than that shown in the schedule. In that case the lower amount should be used. Where the value of goods ex-stock would be significantly greater, the actual amount should be used.

4. It should be pointed out that these indexed values should only be used as a guide. In the context of self assessment, each taxpayer should be able to demonstrate that the value attributed to goods taken from stock for private use was fair and reasonable. Taxpayers should always have regard to their own circumstances when determining the appropriate value.

5. The values listed in the schedule below should also be used as a guide for future years until updated by a new Ruling.

COMMISSIONER OF TAXATION
21 November 1991

APPENDIX

SCHEDULE

VALUE OF GOODS TAKEN FROM TRADING STOCK FOR PRIVATE USE YEAR ENDED 30 JUNE 1991
Business Adult/Child over 16 yrs Child 4-16 yrs
Baker 178 89
Baker/Pastry Cook 296 148
Butcher 415 207
Cafe Restaurant 1720 860
Caterer 1720 860
Chemist 246 123
Coffee Lounge 652 326
Delicatessen 1305 652
Fish Shop 416 208
Fruiterer/Green Grocer 652 326
General Store 1305 652
Grocer 1305 652
Health Food 1305 652
Milk Bar 652 326
Milk Vendor 178 89
Mixed Business 1305 652
Pastry Cook 237 118
Pizza Parlour 1305 652
Take-away 1305 652

References

ATO references:
NO 91/7742-6

Date of effect:
Immediate

Related Rulings/Determinations:

IT 2174,
IT 2421,
IT 2580

Subject References:
TRADING STOCK
VALUE OF GOODS TAKEN FROM STOCK FOR PRIVATE USE

Legislative References:
25
51(1)


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