ATO homing in on valuation disclaimers, SMSFs warned
The ATO is now closely analysing the terms and conditions of valuations which may raise risks for SMSFs in relation to non-arm’s length income, warns a specialist lawyer.
Speaking at a recent Tax Institute event, DBA Lawyers director Daniel Butler said with the ATO paying close attention to the finer details of valuations, SMSFs need to be very precise in this area.
“We’re getting comments from ATO officers saying that there’s a disclaimer on the valuation by the independent valuer so we’re not going to accept that or they want an expert report to drill down on it,” explained Mr Butler.
Mr Butler said he has also seen other instances where the ATO will accept the valuation but won’t accept the terms and conditions of the valuation.
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