Duty payable if transaction ceases to be exempt
102P Duty payable if transaction ceases to be exempt
If the Commissioner determines to revoke an exemption granted under section 102L in relation to a transaction, the following provisions apply:
the
Commissioner must give written notice of the determination to the parties to the transaction or to the parent corporation of the corporate group to which the parties belong;
if the exemption is revoked after the transaction takes place—
duty is payable in relation to the transaction from the date of the transaction; and
the liability of the parties to pay duty is to be assessed in relation to the circumstances applying at the date of the transaction as if the transaction had not been an exempted transaction; and
the duty chargeable on an instrument is to be calculated according to the rates in force as at the date of the instrument; and
for the purposes of section 20, the duty is to be regarded as having become chargeable on any relevant instrument in consequence of the Commissioner's determination to revoke the exemption; and
the parties to the transaction may, at the discretion of the
Commissioner, be liable to pay interest and penalty tax as if the failure to pay duty at the date of the transaction were a tax default under the Taxation
Administration Act 1996;
and
the members of the corporate group to which the parties to the transaction belong are jointly and severally liable for payment of the duty.
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