2012 Unit 5 Profit computation - s

15c tax 34 the principle of sharkey v werhner

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Unformatted text preview: f Sharkey v. According Wernher, Wernher, Where a trader Has taken part of his stock for his own use, Has taken enjoyment or consumption enjoyment Instead of being sold, Instead The market value of that stock at the time of The market such disposition is treated as receipt in his receipt 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 The apply v. Wernher. v. 36 Extension of the Sharkey v Extension Wernher Principle Wernher The Sharkey v. Wernher principle was The extended in Petrotim Securities Ltd. v. Ayres Petrotim (1963) 41 TC 389. A share-dealing company sold its investments share-dealing sold which were its trading stock to its parent company below the market value. below Held: the market value should be substituted Held: market 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.

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