Duties Act 2001

This section applies if—

duty is assessed on a dutiable transaction or relevant acquisition on the basis of an exemption under section 406, 408 or 409; and

within 3 years after the transaction or acquisition—

the transferor or transferee has ceased to belong to the same corporate group; or

part or all of the consideration for the transaction or acquisition is provided or received other than as permitted by section 406(2)(c)(ii) or (iii).

The commissioner must make a reassessment to impose duty on the dutiable transaction or relevant acquisition as if the exemption from duty had never applied.

Note—Unpaid tax interest and penalty tax may be payable under the Administration Act, part 5.

Subsection (2) applies to the reassessment despite the following—

the limitation period under the Administration Act for reassessments;

the commissioner’s ruling under section 410 for the dutiable transaction or relevant acquisition.

Note—See the Administration Act, part 3 (Assessments of tax), division 3 (Reassessments).

However, subsection (2) does not apply—

if the transferor or transferee ceases to exist, other than under an arrangement, a significant purpose of which was to avoid the requirement that the transferor and transferee belong to the same corporate group for the 3 years mentioned in subsection (1); or

if—

the transferor or transferee ceases to be a group company in the corporate group because its shares, or the shares of a new parent company interposed between the transferor and transferee, are offered and sold to the public; and

the shares are quoted on the market operated by a recognised stock exchange within 1 year after the offer to the public; orNote—Section 498A includes provision about when the quotation of securities is suspended.

if less than 5% of the value of the property held, directly or indirectly, by the company that ceases to be a group company is dutiable property.

Without limiting subsection (4)(a), a company registered under the Corporations Act ceases to exist if it is deregistered under that Act.