24 Jun 10 Addendum to TD 95/48 (loans of demonstration computers)
On 23 June 2010, the ATO issued an Addendum to Taxation Determination TD 95/48 (Income tax: a wholesaler of computers lends demonstration computers (demonstrators) to prospective purchasers (excluding retailers) on the basis of 'approval, exchange or return' or to retailers for display purposes only. The wholesaler retains ownership at the time of providing the demonstrators. The demonstrators are not on consignment. Are the demonstrators 'trading stock' of the wholesaler for the purposes of s 6(1) and 'trading stock on hand' of the wholesaler for the purposes of s 28(1) of the ITAA 1936 (the Act)?)
The Addendum amends Taxation Determination TD 95/48 to reflect the changes to the law caused by the repeal of inoperative provisions. The Addendum applies on and from 1 July 1997.