Taxation Determination

TD 92/156A1 - Addendum

Income tax: do the trading stock provisions apply to newsprint held by a taxpayer carrying on a business of producing newspapers?

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Addendum

This Addendum amends Taxation Determination TD 92/156 to reflect changes to the law resulting from the repeal of inoperative provisions.

Taxation Determination TD 92/156 is amended as follows:

1. Paragraph 1

Omit the paragraph; substitute:

1. Yes. Section 70-10 of the Income Tax Assessment Act 1997 (ITAA 1997)^[1] defines trading stock as including anything produced, manufactured or acquired that is held for purposes of manufacture, sale or exchange in the ordinary course of a business.

2. Paragraph 2:

Omit the first sentence; substitute:

We consider that newsprint is trading stock because it is produced, manufactured or acquired by a newspaper producer for purposes of manufacture of newspapers.

3. Paragraph 3

(a)

Omit 'Section 28'; substitute 'Section 70-35'.

(b)

Omit 'section 28' where occurring; substitute 'section 70-35'.

(c)

Omit 'subsection 51(1)'; substitute 'section 8-1'.

4. Legislative references

Omit the references; substitute:

-

ITAA 1997 8-1

-

ITAA 1997 70-10

-

ITAA 1997 70-35

This Addendum applies on and from 14 September 2006.

Commissioner of Taxation
23 September 2009

References

ATO references:
NO 2006/20258