Page 7 - P6 Slide Taxation - Lecture Day 5 - Trading stock
P. 7
Eveready v SARS
• The taxpayer purchased the Eveready battery
• division from Gillette SA.
• Deduction of R103m was claimed for the "market value
of stock acquired for no consideration.
• Dispute was not whether Eveready was entitled to a
• deduction, but what was the amount.
• Question: was the trading stock acquired for no
consideration. If that was the case, the deduction is at
market value.
• If it was acquired at consideration, the cost thereof will
be deductible as opening stock (a22(2)(b)).
7
