25Valuation of property

25 Valuation of property (1) For the purpose of determining whether a person is liable to pay tax or a person's tax liability, the Commissioner may do one or more of the following: (a) require the person to provide to the Commissioner: (i) a valuer's valuation of property; or (ii) other evidence of the value of property satisfactory to the Commissioner; (b) obtain a valuer's valuation of property; (c) adopt any available valuation of property prepared for any purpose (whether or not relating to the determination of tax liability) by a valuer or other person whom the Commissioner considers suitably qualified to value the property. (2) The Commissioner may recover valuation costs from the taxpayer if: (a) the taxpayer is required to provide a valuation or other evidence under subsection (1)(a) and fails to do so; or (b) a valuation obtained or adopted by the Commissioner under subsection (1)(b) or (c) exceeds the valuation provided by the taxpayer by 15% or more.

Taxation Administration Act 2007 15 (5) However, if the valuation obtained or adopted by the Commissioner is successfully challenged on an objection, review or appeal, the Commissioner may recover valuation costs only if the value on which tax is finally assessed exceeds the taxpayer's valuation by 15% or more. (6) If a valuation gives a range of values and does not fix a particular point in the range at which the value probably lies, the valuation is taken (but only for the purpose of comparison with other valuations under this section) to fix a value at the median point in the range. (7) In this section: valuation cost includes the cost of, or incidental to, obtaining or adopting a valuation or otherwise related to the use by the Commissioner of the valuation.