Income Tax Assessment Act 1997
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Hide history noteSECTION 620-40 Body taken to have sold trading stock to company 620-40(1)
This subsection applies to each item of *trading stock that the body disposes of to the company because the body ceases to exist.
620-40(2)
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.
620-40(3)
The company is taken to have held the item as *trading stock when it bought the item.
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