Property vested in an apparent purchaser
34 Property vested in an apparent purchaser
No duty is chargeable under this Chapter in respect of—
S. 34(1)(a) amended by No. 30/2002 s. 7(2)(a)(i).
a declaration of trust made by an apparent purchaser in respect of identified dutiable property or marketable securities referred to in section 10(2)—
S. 34(1)(a)(i) amended by No. 30/2002 s. 7(2)(a)(ii).
vested in the apparent purchaser upon trust for the real purchaser who provided the money for the purchase of the dutiable property or marketable securities; or
S. 34(1)(a)(ii) amended by No. 30/2002 s. 7(2)(a)(ii).
to be vested in the apparent purchaser upon trust for the real purchaser, if the Commissioner is satisfied that the money for the purchase of the dutiable property or marketable securities has been or will be provided by the real purchaser; or
S. 34(1)(b) substituted by No. 30/2002 s. 7(2)(b).
a transfer of dutiable property or marketable securities referred to in section 10(2) from an apparent purchaser to the real purchaser in a case where dutiable property or marketable securities are vested in an apparent purchaser upon trust for the real purchaser who provided the money for the purchase of the dutiable property or marketable securities.
S. 34(1A) inserted by No. 22/2018 s. 10(1).
In addition, no duty is chargeable under this Chapter as follows—
if a declaration of trust is made by an apparent purchaser in respect of identified dutiable property or marketable securities referred to in section 10(2) and—
a real purchaser has provided less than 100% of the money for the purchase of the dutiable property or marketable securities (a real purchaser's contribution)—to the extent that the declaration of trust vested in the apparent purchaser on trust for the real purchaser the dutiable property or marketable securities in proportion to the real purchaser's contribution; or
the Commissioner is satisfied that a real purchaser has provided or will provide less than 100% of the money for the purchase of the dutiable property or marketable securities (a real purchaser's contribution)—to the extent that the declaration of trust will vest in the apparent purchaser on trust for the real purchaser the dutiable property or marketable securities in proportion to the real purchaser's contribution;
if there is a transfer of dutiable property or marketable securities referred to in section 10(2) from an apparent purchaser to a real purchaser and the real purchaser has provided less than 100% of the money for the purchase of the dutiable property or marketable securities (a real purchaser's contribution)—to the extent that the dutiable property or marketable securities are vested in the apparent purchaser on trust in proportion to the real purchaser's contribution.
Example
Person A and Person B purchase an estate in fee simple together, making equal contributions to the purchase price. They intend to be registered as tenants in common in equal shares. However, only Person A is registered. As a result, Person A holds 50% of the estate in fee simple as an apparent purchaser on trust for Person B, the real purchaser of that 50%.
Person A transfers the whole of the estate in fee simple to Person B. Under this transfer, 50% represents Person B's beneficial interest in the property held by Person A and the other 50% is purchased by Person B. Although the transfer is for the whole of the estate in fee simple, no duty is chargeable in respect of the 50% that was held on trust by Person A as apparent purchaser for Person B, the real purchaser.
S. 34(1B) inserted by No. 22/2018 s. 10(1).
For the purposes of subsection (1) and (1A), money provided by a person other than the real purchaser is taken to be provided by the real purchaser, if the Commissioner is satisfied that the money—
was provided as a loan; and
has or will be repaid by the real purchaser.
In this section, purchase includes an allotment.
S. 34(2A) inserted by No. 71/2004 s. 13, repealed by No. 22/2018 s. 10(2).
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S. 34(3) inserted by No. 58/2003 s. 9(1).
This section applies whether or not there has been a change in the legal description of the dutiable property or marketable securities.
Example
An example of a change in the legal description of dutiable property is the issuing of new certificates of title of land following a subdivision of the land.
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