ATO Rulings and Determinations
Trading stock: treatment of incentives to buyers
29.04.2009
A draft ruling has been issued which deals with the trading stock and general income tax implications where a seller sells trading stock to a buyer or a buyer purchases trading stock from a seller where:
- trade incentives in the form of discounts, rebates or other incentives are received by the buyer from the seller in connection with the buyer’s purchase of trading stock; or
- trade incentives or other payments not directly connected with the buyer’s purchase of trading stock are received by the buyer from the seller:
(a) in consideration for the buyer providing a service in relation to the trading stock; or
(b) to secure a real commercial benefit for the seller in relation to its brand or the future sale of its goods (TR 2009/D2).
