Commentary

B5.165 Farm produce marketed through co-operative

Business tax
Business tax | Commentary

B5.165 Farm produce marketed through co-operative

Business tax | Commentary

B5.165 Farm produce marketed through co-operative

Farm produce may be marketed through a farm co-operative acting as agent for the farmer. The produce may be held by the co-operative in a pool along with similar produce from other farmers, although ownership of unsold produce remains with the farmer. The value of such unsold stock at the end of an accounts period must be included, and may be ascertained using the following formula1

where:

  1.  

         a is the amount in the pool which came from the particular farmer;

  2.  

         b is the amount in the pool not sold at the valuation date;

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