Page 51 - Taxation F6

Closing Stock

• At the end of the year of assessment the closing stock

is added back to the taxable income.

• When the goods are purchased a deduction is allowed

against the taxable income.

• If the goods are not sold by year end this means the

taxpayer has a deduction without the corresponding

revenue resulting in a loss to the tax authorities.

• To equate the income and the revenue the closing

stock will need to be add back at the of YOA.

• At what value is the stock added back to the taxable

income.

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