How duty is charged on transfer
32OA 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 option; and
the dutiable value of the subsequent transaction by which the final subsequent purchaser obtained or assumed the transfer right; and
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).
Despite subsection (1), duty is not charged under this Division on the dutiable value of a subsequent transaction referred to in subsection (1)(b) or (c) (as the case requires) if duty is charged on the subsequent transaction under Division 2 or 3.
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.
Example
A vendor grants an option that entitles persons A and B to require the vendor to enter into a contract of sale of dutiable property (the initial transaction). Under the option, persons A and B each obtain a transfer right to a 50% interest in the property. Under a subsequent transaction immediately following the granting of the option (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 option to the extent of the transfer right obtained by person A under the initial transaction (50%).
In subsection (4)—
initial transaction means the option or a subsequent transaction;
latter transaction means a subsequent transaction immediately following the initial transaction.
S. 32OB inserted by No. 28/2017 s. 30.
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