Mitchell & Taylor Tax Consolidation Valuations
The New Business Tax System (Consolidation) Act (No. 1) was legislated in 2002. Mitchell & Taylor’s valuers have prepared 180+ market valuations for tax consolidation throughout all Australian states and territories.
Our valuation reports are a clear and concise representation of our findings, assumptions and value opinions. All Tax Consolidation Valuations are checked for factual accuracy and peer reviewed by our valuation team. They are prepared in accordance with professional valuation standards issued by the International Valuation Standard Council (IVSC) and Australian Property Institute (API). We also observe Australian Taxation Office (ATO) guidance entitled “Market Valuation for Tax Purposes”.
The tax consolidation regime provides for wholly owned corporate groups to operate as a single entity for income tax purposes. When a consolidated entity acquires (through internal restructure or acquisition) wholly owned assets of an Australian based business (joining entity) market valuations are typically required to determine new tax costs for the assets of the joining entity. This determination is commonly referred to as the cost setting process.
The ATO’s guidance notes prescribe market value as the appropriate value for tax purposes and refers to the International Valuation Standards (IVS) definition of market value as:
“the estimated amount for which an asset or liability should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently, and without compulsion”
Drop us a line now to learn more about our Tax Consolidation Valuations