VALUATIONS FOR
TAXATION
VALUATIONS AND VALUE-RELATED TAX SERVICES
In today’s changing tax landscape, corporate tax professionals are tasked with establishing tax-efficient corporate structures that meet business goals while protecting and maintaining flexibility in cash and other corporate assets. In contrast to the corporate tax professionals, there is a worldwide focus by governments and various taxing jurisdictions on creating rules and legislation in an attempt to find new and innovative ways to raise tax revenues.
Businesses need valuation experts who understand their industries, markets, and economies. Many domestic and global tax laws and regulations require a valuation.
Leadenhall, in partnership with the Valuation Research Group (VRG) provides quality valuations and value-related tax services for an international business community, serving clients in more than 60 countries. We deliver a reliable assessment of the market value of assets for tax compliance and more favourable tax outcomes.
Our valuation services are used in relation to:
- Tax consolidation – tax costs and proceeds
- Capital gains tax – cost base and proceeds
- Residency – establishment of cost base
- Restructures – valuation of entities and intangible assets
- Employee share and option schemes
- Small business concessions
- Stamp duty
- Thin capitalisation
- Transfer pricing
- Cross border tax issues.
NOW YOU KNOW OUR TAX CREDENTIALS
Here are just a few examples of tax-related valuation matters which Leadenhall has advised on.
Client | Engagement |
ATO | Allocation of $1.83 billion purchase price between two industrial businesses acquired in a single transaction, to assist the ATO assess tax implications of the subsequent disposal of one of those businesses. |
Joint appointment by the ATO and taxpayer in a valuation dispute. | |
Assessing the market value of a significant but non-controlling stake in one part of a listed stapled security that was transferred within a family group, to assist the ATO assessing the cost base for CGT. This was a highly technical and hard fought matter that ended in a settlement based on a figure much closer to Leadenhall’s valuation (for the ATO) than the taxpayer’s. | |
RevenueWA | Reviews of several valuation reports in relation to stamp duty matters, including for port storage facilities, port access rights and a gas-fired power station. |
Multinational company | Market valuation of one participant’s interest in Australia’s largest resource development project to support thin capitalization calculations for the taxpayer. |
Australian listed oil and gas company | Allocation of the $1.3 billion purchase price between various Australian states, and between a range of assets and liabilities including freehold land, property plant and equipment, petroleum assets, mining information, net working capital and rehabilitation liabilities. The analysis was used to support the taxpayer’s stamp duty compliance. |
Top 50 ASX listed financial services company | Valuation of the intangible assets of a large financial services business for stamp duty purposes in connection with the $1.5 billion sale of a 55% interest in the company. |
Gaming company | Valuation of intellectual property assets transferred out of Australia for capital gains tax purposes. |
MedicalDirector | Valuations of shares and options for capital gains tax and employee share plan purposes. |
Mike Carney Motors | Expert report regarding the value of units in a trust in connection with an ATO review, including review and critique another expert’s valuation. |
FIND OUT MORE OR SPEAK TO A TAXATION VALUATION EXPERT
Now that you know a little more about what we can offer by way of valuation for taxation, fill out the form and one of our team members will reach out to you to discuss your specific situation and needs further.
ABOUT VRG & LEADENHALL
Leadenhall is unique in that we’re the Australian member of the Valuation Research Group (VRG), which has a global network of over 800 professionals and clients in 60 countries. The VRG international group delivers independent valuation and advisory services and offers deep expertise in mergers, acquisitions, divestitures, restructuring, capital markets, financial and tax reporting matters, investment banking, and real estate advisory. Founded in 1995, the VRG team is located throughout continental Europe, the U.K., Australia, Asia, and North and South America.
Our valuation specialists are local professionals that manage multinational engagements. This offers clients the convenience of a single point of contact with intimate knowledge of local economies, tax and legislative frameworks, languages, cultures, and the support of the entire VRG network.
Partnering with a valuation firm helps the corporate tax group better understand the value implications of various transactions, whether internal or external and get ahead of any unanticipated surprises, while at the same time minimise risk and tax exposure.
Leadenhall and VRG’s valuation experts are a key partner to the tax group as they contemplate various transactions and also help them stay on top of current rules, regulations and best practices.