The Inspector-General of Taxation (IGT), Mr Ali Noroozi, on Tue 19.11.2013, announced terms of reference for his review into the ATO’s administration of valuation matters and called for stakeholder submissions.
Australia’s tax and superannuation laws are increasingly relying on concepts such as market value, Mr Noroozi said. While there may be sound economic reasons for using such concepts, their use has resulted in a growing need for taxpayers to undertake significant valuation work, he said. Valuations are required in numerous taxing regimes and affect a wide range of taxpayers – from small businesses seeking the CGT concession to larger businesses complying with the income tax consolidation or taxation of financial arrangements regimes.
Mr Noroozi said the main source of taxpayer concern is the compliance burden that valuations necessitate. “Critically, valuations are inherently subjective and can be a source of significant uncertainty leading to ATO disputes which can be frustrating, time-consuming and costly,” he said.
COMMENTS are due by 20 December 2013.
Source: Inspector-General of Taxation media release, 19 November 2013
[LTN 224, 19/11/13]