Market valuation for tax purposes

Table 1: Products based on the nature of the transaction or event

Nature of transaction	Examples of tax context	ATO products (not exhaustive)
Capital gains tax (CGT) events generally	Wherever market value is required	TD 10W: Capital Gains: What are acceptable valuations for CGT purposes? TD 97/1: Income tax: property development: if land, originally acquired as a capital asset, is later ventured into a business of development, subdivision and sale, how is the market value of the land calculated at the time it is ventured into the business?
	Transfers to related parties	Transferring real estate to family or friends.
	Defining an asset	TR 2004/13: Meaning of an asset for the purposes of Part 3-90 of the Income Tax Assessment Act 1997
Share buy-backs	Valuing shares in buy-backs	TD 2004/22: Income tax: for Off-Market Share Buy-Backs of listed shares, whether the buy-back price is set by tender process or not, what is the market value of the share for the purposes of subsection 159GZZZQ(2) of the Income Tax Assessment Act 1936? PS LA 2007/9: Share buy-backs.
Unlisted shares for ESS schemes	Form for completion by a registered company auditor.	Declaration of the value of unlisted shares.
Trading stock	Valuation of land as trading stock in property development Valuation of land that is ventured into a property development	TD 92/132: Income tax: property development: if land is trading stock, do related interest costs, council rates and land taxes, form part of the cost price for trading stock valuation purposes? TD 97/1: Income tax: property development: if land, originally acquired as a capital asset, is later ventured into a business of development, subdivision and sale, how is the market value of the land calculated at the time it is ventured into the business?
Allocation of value to underlying assets	Disposals and transfers of more than one asset for a single undivided amount	TD 9: Capital gains: How do you apportion consideration received on the disposal of a composite asset?
GST margin scheme	Valuing partially completed developments	GSTR 2000/21: Goods and services tax: the margin scheme for supplies of real property held prior to 1 July 2000 GSTR 2006/7: Goods and services tax: how the margin scheme applies to a supply of real property made on or after 1 December 2005 that was acquired or held before 1 July 2000 GSTR 2006/8: Goods and services tax: the margin scheme for supplies of real property acquired on or after 1 July 2000
Consolidated entities	Consolidation events generally - including entries, exits, cost base setting and determining the allowable fraction	TR 2005/17: Income tax: goodwill: identification and tax cost setting for the purposes of Part 3-90 of the Income Tax Assessment Act 1997 TD 2007/1: Income tax: consolidation: in working out the market value of the goodwill of each business of an entity that becomes a subsidiary member of a consolidated group, should the value of related party transactions of each business of the entity be recognised on an arm's length basis? TD 2007/27: Income tax: consolidation: is the cost base of the goodwill referred to in subsection 711-25(2) of the Income Tax Assessment Act 1997 limited to the cost base of goodwill under subsection 705-35(3) of that Act?
Self managed superannuation funds	Valuing fund assets	Valuation Guide for Self-managed super funds: Self-managed superannuation funds
Research and development concession	Value of contributions to R&D	IT 2451: Guide to the research and development tax concession - paragraphs 12-14
Fringe benefits tax	Car parking fringe benefits	TR 96/26: Fringe benefits tax: car parking fringe benefits - paragraphs 46 and 50

Sections within Appendix

• Table 1: Products based on the nature of the transaction or event
• Table 2: Products and methodologies based on asset class
• Table 3: Commonly used valuation methods for selected securities