Published on 01 Oct 13
by "THE TAX SPECIALIST" JOURNAL ARTICLE
This article identifies fundamental traps in valuations of specialised in situ assets for tax purposes and suggests ways to deal with them. These traps arise from using an incorrect unit of measurement, adopting an incorrect subject of valuation, misinterpreting financial statements as a statement of value, overlooking the evolutionary nature of asset value and the economic nature of goodwill, and dictating the assessment of goodwill value as a residual. Unfortunately, these traps have received little recognition in the public arena. The tax consequences from failing to recognise and deal with them are self-evidently significant.
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