Commissioner for ACT Revenue v Araghi and Dorsett

[2013] ACTSC 43

Supreme Court of the ACT

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Interrogate

Catchwords

1. Taxes and Duties
2. › Stamp duties
3. › Dutiable transaction
4. › Agreement for sale of Crown lease
5. › Interdependent contracts for land sale and building
6. › Whether building contract value forms part of consideration for land sale contract
7. › Duties Act 1999 (ACT), ss 7, 8, 10, 17, 20, 21
1. Taxes and Duties
2. › Stamp duties
3. › Dutiable value
4. › Consideration for dutiable transaction
5. › Monetary and non-monetary consideration
6. › Whether buyer's performance of building contract constituted non-monetary consideration
7. › Value of non-monetary consideration
8. › Duties Act 1999 (ACT), s 20(1)
1. Taxes and Duties
2. › Stamp duties
3. › Off the plan purchase agreements
4. › House and land packages
5. › Whether interdependent contracts with different parties constitute off the plan purchase agreement
6. › Whether concept of house and land package affects dutiable value
7. › Duties Act 1999 (ACT), ss 16A, 16B, 20(2)
1. Taxes and Duties
2. › Stamp duties
3. › Transfer in conformity with agreement
4. › Whether transfer of improved land in conformity with agreement for sale of unimproved land
5. › Whether ad valorem duty payable on transfer
6. › Duties Act 1999 (ACT), ss 17(2), 22(2)

Quick Take

Where a buyer enters into separate but interdependent contracts for the purchase of a Crown lease and for construction of a building on the land, stamp duty under the Duties Act 1999 (ACT) is assessable on the land sale contract alone. The monetary consideration is the price specified for the Crown lease, not the combined value of both contracts. The buyer's performance of the building contract may constitute non-monetary consideration, but its value cannot simply be equated to the building contract price. A transfer of a Crown lease with a building on the land is 'in conformity with' the land sale agreement where the agreement itself contemplated and required the building to be erected before completion.