Commentary

B2.616 Value of stock where shares form part of purchase consideration

Business tax
Business tax | Commentary

B2.616 Value of stock where shares form part of purchase consideration

Business tax | Commentary

B2.616 Value of stock where shares form part of purchase consideration

In Doughty1 (a New Zealand case), a business was sold as a going concern to a company in consideration of the allotment of shares in the company. The stock was not separately sold, but it was written up in value in the company's first accounts. The question in the case was whether or not the excess figure thus ascertained was assessable to tax on the firm. It was held that it was not assessable.

The same question arose in another form in Steel Barrel Co2, where the assets of a

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