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Unformatted text preview: f Sharkey v.
Where a trader Has taken part of his stock for his own use,
enjoyment or consumption
enjoyment Instead of being sold,
The market value of that stock at the time of
such disposition is treated as receipt in his
trading account for tax purposes (Sharkey v.
Wernher (1955) 35 TC 275).
35 Principle of Sharkey v Wernher If a sole proprietor or partner
If sole Takes goods from trading stock for
purposes other than by sale in the ordinary
course of his retailing business, The IRD will apply the principle of Sharkey
36 Extension of the Sharkey v
Wernher The Sharkey v. Wernher principle was
extended in Petrotim Securities Ltd. v. Ayres
(1963) 41 TC 389.
A share-dealing company sold its investments
which were its trading stock to its parent
company below the market value.
Held: the market value should be substituted
for the agreed sale pric...
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This note was uploaded on 04/02/2013 for the course ECON 20222 taught by Professor Junelau during the Spring '13 term at City University of Hong Kong.
- Spring '13