Payment of duty on mortgages associated with debenture issues
172 Payment of duty on mortgages associated with debenture issues
This section applies if—
a corporation is or will be under a liability to repay money received or to be received by it in respect of its debentures; and
S. 172(1)(b) amended by No. 113/2003 s. 3(1).
the repayment is secured by a mortgage first executed before 16 August 2003; and
the corporation is a party to an instrument of trust relating to the debentures.
If the corporation and the trustee for the debenture holders give a written undertaking in the approved form to the Commissioner—
S. 172(2)(a) amended by No. 113/2003 s. 3(2)(a).
a mortgage first executed before 16 August 2003 solely securing the repayment of money received or to be received by the corporation in respect of its debentures is not liable to mortgage duty; and
S. 172(2)(b) substituted by No. 113/2003 s. 3(2)(b).
a mortgage first executed before 16 August 2003 securing in part the repayment of such money is not liable to mortgage duty in respect of advances arising from debentures subscribed for before 16 August 2003.
The undertaking binds the corporation and the trustee to lodge with the Commissioner, in July each year, a statutory declaration setting out, in the following categories, the total amount subscribed for in Victoria in respect of the corporation's debentures during the year ending on the previous 30 June (but not including amounts repayable at call or in less than 30 days) and to pay duty in the following amounts—
Money repayable at or after the expiration of not less than 30 days and not more than 3 months | $0.40 for every $2000, or part |
Money repayable at or after the expiration of not less than 3 months and not more than 6 months | $0.80 for every $2000, or part |
Money repayable at call after a specified period is taken to be money repayable at the expiration of that period.
S. 172(3A) inserted by No. 113/2003 s. 3(3).
The obligation to lodge a statutory declaration in accordance with subsection (3) ceases after July 2003.
S. 172(3B) inserted by No. 113/2003 s. 3(3).
The corporation and the trustee must lodge with the Commissioner a statutory declaration on or before 1 July 2004 setting out, in the following categories, the total amount subscribed for in Victoria in respect of the corporation's debentures during the period commencing on and including 1 July 2003 and ending on 15 August 2003 (but not including amounts repayable at call or in less than 30 days) and to pay duty in the following amounts—
Money repayable at or after the expiration of not less than 30 days and not more than 3 months | $0.40 for every $2000, or part |
Money repayable at or after the expiration of not less than 3 months and not more than 6 months | $0.80 for every $2000, or part |
Money repayable at call after a specified period is taken to be money repayable at the expiration of that period.
S. 172(3C) inserted by No. 113/2003 s. 3(3).
A mortgage referred to in subsection (2)(b) is taken to be duly stamped for the amount disclosed in a statutory declaration referred to in subsection (3) or (3B).
S. 172(3D) inserted by No. 113/2003 s. 3(3).
Any further advance in respect of subscriptions made on or after 16 August 2003 is subject to duty under section 154.
If a person resident or domiciled in Victoria becomes the holder of a debenture referred to in this section that was subscribed for outside Victoria, the debenture is chargeable, on the date on which that person becomes the holder of the debenture, with an amount of duty under this Part equal to the amount of duty that would be chargeable under this Part (other than under this subsection) if the debenture had been issued on that date unless ad valorem duty has been paid or is payable in another State or in a Territory in respect of the issue of, or subscription for, the debenture.
In this section, a reference to an amount subscribed for in respect of debentures includes a reference to an amount represented by debentures issued on the conversion or renewal of an existing holding of debentures or other marketable securities.
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