Income tax: 1. are live pearl oysters (Pinctada maxima) used in a business of pearl culture, trading stock for the purposes of Income Tax Assessment Act 1936? 2. What is the value to be allocated to live pearl oysters used in a business of pearl culture pursuant to section 32?

Taxation Determination TD 93/70 determines whether live pearl oysters used in the business of pearl culture are trading stock and what value is to be allocated under section 32 of the Income Tax Assessment Act 1936 (ITAA 1936).

Section 32 of the ITAA 1936 was omitted by the Tax Laws Improvement Act 1997. The value of trading stock including live stock at the end of an income year is now dealt with under section 70-45 of the Income Tax Assessment Act 1997 (ITAA 1997), which took effect from 1 July 1997. This means that the valuation of live stock at the end of an income year now includes replacement value as an option. Section 70-50 of the ITAA 1997 provides for valuation if trading stock is obsolete.

The definition of 'primary production business' in section 995-1 of the ITAA 1997 now specifically includes the conducting of operations relating directly to taking or culturing of pearls or pearl shell.