Western Australian Consolidated Acts

DUTIES ACT 2008 - SECT 259

259 .         Relevant consolidation transaction, defined

        (1)         In this section —

        corporate consolidation means the formation of a family by the interposition of an entity (the head entity ) between another entity (the affected entity ) and the holders of the affected entity’s securities.

        (2)         Subject to this section, a relevant consolidation transaction is any acquisition on which landholder duty is chargeable that is made solely for the purposes of a corporate consolidation and that is —

            (a)         an acquisition of securities of the affected entity by the head entity for which the only consideration given by the head entity is the issue or transfer of its securities to the person from whom the affected entity’s securities were acquired; or

            (b)         an acquisition of securities of the head entity by a holder of securities of the affected entity.

        (3)         An acquisition is not a relevant consolidation transaction if, immediately before the acquisition, the head entity held dutiable property or a vehicle or an interest in an entity.

        (4)         An acquisition is not a relevant consolidation transaction unless, immediately after the issue or transfer of the head entity’s securities —

            (a)         each person that holds those securities (a security holder ) is a person that held securities of the affected entity immediately before the securities of the affected entity were acquired by the head entity; and

            (b)         the proportion of those securities that each security holder holds is the same proportion as that security holder held of the securities of the affected entity.