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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.