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The expression applies if capital proceeds cannot be valued at all. Situations where capital proceeds cannot be valued are likely to be rare. Paragraph 116-30(2)(a) of the Income Tax Assessment Act 1997 does not apply if valuing capital proceeds is merely difficult, costly or inconvenient.

As a matter of policy it is inappropriate to apply the market value substitution rule to deem the market value of an asset being sold to constitute the capital proceeds from a CGT event if it is at all possible to value the capital proceeds given. The substitution of market value should, therefore, be used in these circumstances only as a last resort.

The above analysis also applies to expenditure that cannot be valued in paragraph 112-20(1)(b) of the cost base market value substitution rule.

We invite you to comment on this Draft Taxation Determination. We are allowing 4 weeks for comments before we finalise the Determination. If you want your comments considered, please provide them to us within this period. Comments by Date: 24 September 1999 Contact officer details have been removed following publication of the final ruling.