There is a controversial issue where IRB says that if you transfer stock from one business to another business, it tantamounts to a withdrawal of stock. – Bernama filepic, whether operating under a corporate umbrella or otherwise, generally assume that using their own stocks for personal use or transferring it to another business is just an internal affair and should not trigger any tax liabilities.
Here, the intention is important. To establish the change in the intention, there must be sufficient documentation which should support the fact. This is an area of constant dispute between taxpayers and IRB. The phrase “withdrawn for own use” has been defined by the courts to have a much wider meaning. They have defined it as not being confined to just taxpayers having to occupy a building or use the stock themselves. The term “own use” means that the stock can be used by taxpayers in any manner they think fit. It need not be used by the taxpayers themselves.