The officials’ issues paper presents proposals relating to the tax treatment of disposals of trading stock at below market value. Some businesses dispose of trading stock in the normal course of business while others might donate goods to various causes. As part of the Government’s COVID-19 response, temporary changes were made to the tax rules relating to trading stock disposals. However, further consideration of the rules is required. 

CA ANZ is pleased to see progress on developing a permanent measure for the taxation of disposals of trading stock at below market value. Notwithstanding, CA ANZ considers the issues paper has erred in its approach and does not reflect modern commercial views and practice.

CA ANZ expresses concerns regarding a business decision, integrity, simplicity and scope, and trading stock taken for personal use.