Substantial Valuation Overstatement

Substantial Valuation Overstatement may have one of the following meanings, depending the context of the term:

1. The value or adjusted basis of any property claimed on any tax return is 200% or more of the amount determined to be the correct value or adjusted basis.

2. Also, the price for any property or services in a transfer pricing transaction is 200% or more of the correct price determined under Section 482. A 20% penalty applies to the underpayment of tax.

See also substantial transfer pricing valuation misstatement penalty.

See Transfer Pricing in the United States Encyclopedia of Law and Transfer Pricing in the International Encyclopedia of Law.