Specifically, the Court held that the valuation did not comply with the Commissioner's Determination because:
- in calculating the market value of the completed premises, the valuer did not take into account actual sale prices after 1 July 2000;
- the valuation did not take into account GST on the sale of the completed premises;
- the valuation did not take into account hypothetical interest costs; and
- the valuation did not take into account rates, land tax, hypothetical stamp duty and legal costs.
For a copy of the decision, go here.
TAXVINE COMMENT: This decision of the Federal Court follows the decision of the Full Federal Court (Brady King Pty Ltd v FCT  FCAFC 118), which held that the taxpayer was entitled to the benefit of the margin scheme, contrary to the finding by Middleton J at first instance: see 2008 TAXVINE No 32 (19) (15 August 2008).