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I have an SMSF that sold silver coins to two members. They had a valuation email from a qualified valuer which provided a buy price if they were to purchase the silver coins as stated. The valuer did not view the silver coins.
The ATO guidance does not go into detail about the independent valuation. Does anyone know if the stated valuation would be sufficient? Thank you, Debbie.
Hi Debbie
You would only need an independent valuation for the coins if they were considered to be collectable coins.
Per the ATO they define coins as collectables when:
"coins and banknotes are collectables if their value exceeds their face value
bullion coins are collectables if their value exceeds their face value and they are traded at a price above the spot price of their metal content "
If the coins are not collectables then an email from a qualified valuer should be sufficient as they should be referring to the spot price of the silver.
SIS Regulation 13.18AA states that if a Fund sells a collectable to a member then it is an offence if:
"the realisation was not at a market price determined by a qualified independent valuer".
If your coins are collectables then an email from a qualified valuer should be sufficient if they do not need to sight the coins to determine their value.
Thanks
The Auditors Institute