Forum Archive Index - September 2000

["Murray McLean" <murray@fmb.co.nz>]

The following is the gospel as per tax regulations, with reference to share
stock value at financial year end.   I quote you from New Zealand Master Tax
Guide 2000 published by CCH Page 376 under heading "Excepted Financial
Arrangements"

"An item of trading stock that is an excepted financial arrangement must be
valued at cost.   This category includes shares and other equity
investments, annuities insurance contracts, gaming and lottery bets, and
various arrangments for the sale and lease of property.   Typically,
excepted financial arrangements are trading stock when the asset is part and
parcel of the taxpayer's business.   For example, a person in the business
of share trading would hold shares as trading stock.   If the excepted
financial arrangement is trading stock, it may be given a nil value when
there is no current or likely future market value and it has been written
off as worthless"

Murray McLean

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