Page 6 - P6 Slide Taxation - Lecture Day 5 - Trading stock
P. 6
Trading stock acquired for no
comsideration
• Section 22(4) provides that the cost price of
trading stock for a person who acquires trading
stock for no consideration or for a consideration
that is not measurable in terms of money will be
deemed to be its current market price on the
date on which it was acquired by him.
• Must therefore be included in closing stock at
market value.
• SARS Practice: allows deduction for market
• value at date of acquisition.
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