Published on 30 Jan 09
by THE TAX INSTITUTE
The professional bodies generally agree with the principles outlined in the Draft Determination. Section 109Y clearly gives the Commissioner discretion to substitute an appropriate value to assets where the accounting records significantly undervalue the company's assets. We agree that this discretion is not limited where the value of the relevant asset is not shown in the accounting records. However, the Draft Determination lacks clarity and the example used in the ruling is confusing.
NATIONAL INSTITUTE OF ACCOUNTANTS
TAXATION INSTITUTE OF AUSTRALIA