Commentary

B2.615 Value of stock of a purchased business

Business tax
Business tax | Commentary

B2.615 Value of stock of a purchased business

Business tax | Commentary

B2.615 Value of stock of a purchased business

When a business is sold as a going concern it is not always the practice to apportion the total purchase price among the assets, and in such a case it is necessary to arrive at the figure representing the purchase price of the stock. Where a transfer of the business occurs and the stock falls to be valued for the purposes of calculating the profits of the vendor1, the same value is taken to be the cost of the stock to the purchaser2.

Where, exceptionally, the above provision does not apply it is necessary to arrive at the

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