Section CG 6 — Income Tax Act 2007: Receipts from insurance, indemnity, or compensation for trading stock

CG 6 Receipts from insurance, indemnity, or compensation for trading stock When this section applies (1) This section applies when a person receives an amount of insurance, indemnity, or compensation for the loss or destruction of, or damage to,— (a) trading stock: (b) anything acquired, manufactured, or produced for a purpose ancillary to a business of manufacturing or producing goods for sale or exchange. Income (2) The part of the insurance, indemnity, or compensation that is attributable to the asset is income if— (a) the person is allowed a deduction in an income year for the cost of the asset; and (b) the deduction is not for an amount of depreciation loss. Timing of income (3) The income is allocated to the income year in which the amount is received. Defined in this Act: amount , business , deduction , depreciation loss , income , income year , trading stock Compare: 2004 No 35 s CG 6