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Unformatted text preview: urities in the
Banking & Securities Industries
Banking Securities held for dealing purposes are
usually carried at market value.
market This basis, if consistently applied, is
acceptable. (DIPN1 (revised) – para 14).
(DIPN1 24 Change in the Basis (
Valuation ) of Change from a valid basis to a valid
basis Change from a non-valid basis to valid
basis Other changes (see p. 348)
25 Change from a Valid Basis to a Valid
Basis A fundamental principle in stock valuation for tax
purpose is consistency.
purpose consistency Therefore a change from a valid basis is not to be
admitted unless good reasons are given. The
reason must not be for tax advantage. E.g. the change is due to circumstances beyond
the control of the taxpayer, such as
Acquisition by another group of companies, or
or Change in the nature of trade. 26 Change from a Valid Basis to a
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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