From johnjeffreystax.com.au: The ATO has intensified its scrutiny of succession planning and asset transfers between generations, mandating that such assets be valued at market rates to prevent tax underreporting.

A recent case, Moloney and the Commissioner of Taxation, highlighted discrepancies in business valuations and the ATO’s authority to challenge them, ultimately leading to the Moloney family’s victory based on an independent valuation.

Accountants are advised to obtain multiple valuations and maintain thorough documentation to mitigate risks of unexpected tax liabilities during succession planning.