Chapter 10 Profits Tax: Receipts
(b) An exchange profit has the same character as the asset or liability from which it arises. Therefore: (i) exchange profits arising from trading transaction are revenue (e.g. settlement of trade debts, acquisition of trading stock, etc). Thus, the exchange profit in Imperial Tobacco Co Ltd v Kelly (1943) 25 TC 292, was held to be assessable. ................
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