INCOME TAX ADJUSTMENTS FOR TRADING STOCK (INCLUDING RAW MATERIALS) TAKEN FOR OWN USE OR CONSUMPTION) Mr. X, a sole trader, owns a retailstore. During the current year of assessment X withdrew 20 cases of juice from stock for use at Xs daughters wedding at which the juice was served free of charge to the guests. The market value of the juice in question was substantially in excess of its cost price. X had accounted for the juice in opening and closing stock in previous years of assessment. You are required to discuss and evaluate the income tax treatment when the taxpayer takes trading stock for own consumption.

INCOME TAX - ADJUSTMENTS FOR TRADING STOCK (INCLUDING RAW MATERIALS) TAKEN FOR OWN USE OR CONSUMPTION) Mr. X, a sole trader, owns a retailstore. During the current year of assessment X withdrew 20 cases of juice from stock for use at X's daughter's wedding at which the juice was served free of charge to the guests. The market value of the juice in question was substantially in excess of its cost price. X had accounted for the juice in opening and closing stock in previous years of assessment. You are required to discuss and evaluate the income tax treatment when the taxpayer takes trading stock for own consumption