80+
Years Of Experience
ACCOUNTING, TAX & DUTIES
Accurate, Robust Valuations
When it comes to assessing the worth of assets for business accounting, tax purposes, or stamp duties, accuracy and reliability are paramount. In Australia, Mitchell & Taylor Valuations has emerged as the leading asset valuation firm, providing businesses with precise and robust valuations.
Whether for financial reporting, tax compliance, or stamp duty purposes, Mitchell & Taylor Valuations delivers precise valuations that enable informed decision-making and foster trust. When accuracy and reliability matter, businesses turn to Mitchell & Taylor Valuations for their expertise in asset valuation.
Transactions, Mergers & Acquisitions.
Accounting, Tax & Stamp Duties.
Insurance, Risk Management & Legal.
Asset Based Lending.
Business Restructuring, Insolvency & Disposals.
Valuation Solutions
ACCOUNTING, TAX & STAMP DUTIES
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”
Capital Gains Tax Valuations
Property Valuation for CGT purposes ato
Mitchell & Taylor undertake Taxable Australian Property (TAP) market valuations for Capital Gains Taxation (CGT) purposes. Of course, property valuation for tax purposes requires a complete understanding of the assessment act. This is found in the capital gains tax property valuation report.
SECTION 855-20 of the Income Tax Assessment Act 1997 states:
A CGT asset is taxable Australian real property if it is:
(a) real property situated in Australia (including a lease of land, if the land is situated in Australia); or
(b) a mining, quarrying or prospecting right (to the extent that the right is not real property), if the minerals, petroleum or quarry materials are situated in Australia.
Retrospective Valuation for CGT
Our valuers have been engaged as expert witnesses for CGT disputes and have provided expert valuation testimony to Australian Courts. We understand the critical nature of Capital Gains Tax Valuations and provide highly detailed reporting of our findings.
Contact us now to find out more about how our team can assist with your Capital Gains Tax Valuations.
Fixed Asset Impairment Testing
Assets are said to be impaired when their carrying value, (acquisition cost – accumulated depreciation), is greater than the future un-discounted cash flow provided by the asset (recoverable amount). Global accounting standards nominate assets should not be carried in the balance sheet at an amount greater than their recoverable amount.
What is Fixed Asset Impairment?
External economic factors typically cause balance sheet impairment. To meet your management disclosure requirements and avoid ASIC scrutiny, Mitchell & Taylor undertake impairment testing of physical assets for the following reasons:
Changes in regulation and business climate
Declines in the asset’s utilisation
Technology Changes
Forecasts of a significant decline in the long-term profitability of the asset
Damage to assets through natural disasters
Market Changes
To discuss Fixed Asset Impairment and how we can provide an accurate valuation solution, contact us now.
