Section FM 17 — Income Tax Act 2007: Trading stock

FM 17 Trading stock When this section applies (1) This section applies in an income year in which a company ( company A ) transfers identifiable trading stock to another company ( company B ) when— (a) company A and company B are in the same consolidated group at the time of the transfer; and (b) company A and company B choose to value the trading stock under subpart EB (Valuation of trading stock (including dealer’s livestock)) or at the cost to company A, as applicable; and (c) the nominated company of the consolidated group notifies the Commissioner within the time for providing the consolidated group’s return of income, or a later time if the Commissioner agrees. Trading stock held at start of income year (2) If company A held the trading stock at the start of the income year, the consideration for the transfer is the value of the trading stock at the start of the income year determined under subpart EB . Trading stock acquired (3) If subsection (2) does not apply, the consideration for the transfer is the cost of the trading stock to company A. Defined in this Act: Commissioner , company , consolidated group , income year , nominated company , notify , return of income , , trading stock Compare: 2004 No 35 s FD 10(5)