This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

End of attention

The process of appointing and instructing the valuer

The process used to appoint and instruct a valuer can also provide insights as to the level of risk. In assessing the transparency of the process to appoint a valuer, the ATO considers it good practice that:

  • appropriate records of the process are retained by the taxpayer
  • the records contain information that logically leads to and supports the decision to appoint an external or internal valuer
  • appropriate documentation from the valuer is given to and retained by the taxpayer
  • a professional relationship exists between the valuer and the taxpayer throughout the process, and
  • the principles of materiality, competence, independence and transparency are followed in accordance with industry valuation practice.

The ATO may seek documented evidence of instructions to the appointed valuer, which clearly:

  • sets out the scope and purpose of the valuation
  • ensures the valuer's independence in writing the report and in drawing conclusions
  • recognises the valuer's right to refuse to provide an opinion or report if not provided with the information and explanations they need
  • grants the valuer access to the taxpayer's premises and the necessary records
  • ensures the valuer is provided with all help needed to complete the valuation report, and
  • establishes that any fee, where levied, does not depend on the outcome of the report.
    Last modified: 11 Nov 2011QC 25075