Deduction for the cost of goods acquired for resale

The Office of the CfR has issued a guidance note clarifying the application of the principle that a trader may claim a deduction of the costs of stock in trade at the time that the cost is incurred on condition that the good are eventually sold. The guidance provides clarification on the following situations:

• where stock close to expert date is sold at a reduced price;
• where stock is withdrawn and destroyed because of damage or obsolescence; and
• where stock (food and drink) is donated for charity close to their expiry date.

Click here to view the guidance note.