A business owner may need to establish the Market Value of a business, security or intangible asset for tax purposes, including:
changes in capital structure
changes of ownership
capital gains tax rollovers
company divestments
company acquisitions
formation of a tax-consolidated group
entry to a tax-consolidated group
exit from a tax-consolidated group
small business capital gains tax concession
thin capitalisation.
The Australian Taxation Office has prepared some guidance on business valuations including the contents of valuation reports and Tax Office processes.
Taxpayers who undertake their own valuations or use valuations from people without adequate qualifications, experience and independence risk incorrectly reporting their tax liability and may be liable to pay administrative penalties.
The majority of taxpayers who use a qualified valuer or equivalent professional for taxation purposes will generally not be liable to a penalty if they have provided the valuer with accurate information where the valuation ultimately proves to be deficient.
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