How duty is charged on transfer
32C How duty is charged on transfer
Duty on a transfer to which this Division applies is not charged in respect of the transfer from the vendor to the transferee, but is charged separately and distinctly on—
the dutiable value of the sale contract as if it had been completed by the first purchaser; and
S. 32C(1)(b) substituted by No. 84/2008 s. 4(4).
the dutiable value of the subsequent transaction by which the final subsequent purchaser obtained the transfer right; and
S. 32C(1)(c) inserted by No. 84/2008 s. 4(4).
if there were any other subsequent transactions, the dutiable value of each of those transactions.
Duty is charged at the rate set out in Part 3 on the dutiable values referred to in subsection (1).
S. 32C(3) inserted by No. 84/2008 s. 4(5).
If a subsequent purchaser or an associate of a subsequent purchaser has not given or agreed to give additional consideration in order to obtain a transfer right, duty is not chargeable under this Division—
if the subsequent purchaser obtained the transfer right from the first purchaser—on the sale contract to the extent of the transfer right obtained by the subsequent purchaser; or
in the case of a subsequent transaction referred to in subsection (1)(c)—on the subsequent transaction by which the subsequent purchaser obtained the transfer right to the extent of the transfer right obtained by the subsequent purchaser.
S. 32C(4) inserted by No. 84/2008 s. 4(5).
Subsection (3)(b) applies only where a subsequent purchaser obtained a transfer right from another subsequent purchaser.
S. 32C(5) inserted by No. 28/2017 s. 24.
Despite subsection (1), duty is not charged under subsection (1)(a) or (c) (as the case requires) on an initial transaction—
if a person obtains a transfer right under a latter transaction that is greater than a transfer right the person obtained under the initial transaction—to the extent of the transfer right obtained by the person under the initial transaction; and
if a person obtains a transfer right under a latter transaction that is less than a transfer right the person obtained under the initial transaction—to the extent of the transfer right obtained by the person under the latter transaction.
Examples
1 Persons A and B enter into a sale contract for dutiable property (the initial transaction) and each obtain a transfer right to a 50% interest in the property. Under a subsequent transaction immediately following the sale contract (a latter transaction), person A obtains a transfer right in respect of a 100% interest in the property. Duty is not charged under subsection (1)(a) in respect of the sale contract to the extent of the transfer right obtained by person A under the initial transaction (50%).
2 Persons C and D enter into a subsequent transaction in relation to dutiable property (the initial transaction) and each obtain a transfer right to a 50% interest in the property. Under a further subsequent transaction immediately following the initial transaction (a latter transaction), person C obtains a transfer right in respect of a 75% interest in the property and person D obtains a transfer right in respect of a 25% interest in the property. Duty is not charged under subsection (1)(c) in respect of the initial transaction to the extent of—
• the transfer right obtained by person C under the initial transaction (50%); and
• the transfer right obtained by person D under the latter transaction (25%).
S. 32C(6) inserted by No. 28/2017 s. 24.
In subsection (5)—
initial transaction means the sale contract or a subsequent transaction;
latter transaction means a subsequent transaction immediately following an initial transaction.
S. 32D inserted by No. 36/2005 s. 10.
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