Commentary on Sections Overview Chapter 2: Accrued income profits and losses Section 650: Trading stock appropriations etc
1923.This section treats as a transfer of securities certain changes in the capacity in which securities are held by a trader. It is based on section 722 of ICTA.
1924.Section 642 excludes financial traders from the accrued income scheme as profits and losses on any securities they transfer are already included in trading profits and losses. But a financial trader may hold securities as personal investments as well as in the capacity of financial trader.
1925.Subsections (1) and (2) deal with the case where securities are acquired in a non-trading capacity and are then appropriated as trading stock.
1926.Subsections (3) and (4) deal with the reverse case where securities held as trading stock are appropriated for some non-trading purpose.
1927.Subsections (5) and (6) deal with the case where securities are held as trading stock but the trade ceases without the securities changing ownership.
1928.The transfer treated as made is then a transfer within the appropriate type or types in section 622 for the purposes of the accrued income scheme.