With multiple, possibly divergent considerations in play, it pays to spend time planning the valuation scope and consult with tax specialists when instructing valuers.
Common stamp duty matters that should be taken into account from the outset include:
- the timing for the valuation report which can be dictated by stamp duty lodgement deadlines, and can be as early as 30 days from signing of the sale agreement
- Mitigating interest charges can depend on demonstrating that valuers were appointed within a reasonable time the inspection of plant and equipment to assess whether the items are fixtures to land, physically fixed to land or moveable
- registered property valuers may need to be appointed to value real property. This may involve agreeing the size and composition of the sample to be inspected
- apportioning value between States for assets such as goodwill and contractual rights. The choice of apportionment methodology can provide scope for mitigating the overall duty payable.
State revenue offices are increasingly challenging taxpayer valuations as they contend with narrow duty bases. They have access to land title and valuation information. The revenue office may also check values against valuations previously obtained by the taxpayer.
If a revenue office is not satisfied with a taxpayer’s valuation, it may obtain its own valuation. The consequent risks are that the revenue office will seek to pass on their valuation costs and impose penalties. Planning the valuation with tax specialists can mitigate these risks.