Western Australian Consolidated Acts

STAMP ACT 1921 - SECT 75HA

75HA .         Subsequent liability for duty in certain circumstances

        (1)         In this section —

        current exempted property means, when a taxable event occurs in relation to a discretionary trust, that part of —

            (a)         a farming property;

            (b)         an interest in a farming partnership; or

            (c)         a share in a farming company,

        as the case requires, conveyed by an instrument of conveyance the subject of a farming exemption that is, at the date of the taxable event, vested in the discretionary trustee as trustee of the discretionary trust;

        entitled share , in relation to a farming company, means a share that would entitle the holder of that share, if the property of the farming company were to be distributed after the share was acquired (on the basis of a winding up) to participate (otherwise than as a creditor or other person to whom the farming company is liable) in the distribution of the property of the farming company;

        farming exemption means an exemption or partial exemption granted by the Commissioner under this Part;

        relevant proportion means the proportion that the shares in a farming company that are current exempted property bear to the total number of entitled shares in the farming company;

        the transferor has the meaning given in section 75E(1).

        (2)         For the purposes of this section a taxable event occurs in relation to a discretionary trust when —

            (a)         a person who is not a family member of the relevant transferor —

                  (i)         becomes entitled to a share or interest in the trust property of the discretionary trust, whether that share or interest is vested or contingent; or

                  (ii)         otherwise benefits from the discretionary trust;

                or

            (b)         the relevant transferor gains control of the discretionary trust.

        (3)         Where a farming exemption has been granted in relation to an instrument of conveyance to a discretionary trustee of a discretionary trust and during the life of the transferor a taxable event occurs, the discretionary trustee of the relevant discretionary trust shall, unless subsection (4) or (4a) applies, within a period of one month after the date of the taxable event, lodge a statement with the Commissioner in respect of the taxable event.

        Penalty: $20 000.

        (3a)         A dutiable statement is to be prepared in an approved form.

        (4)         A discretionary trustee is not required to lodge a dutiable statement if —

            (a)         a dutiable statement in respect of the farming exemption has previously been lodged with the Commissioner; or

            (ab)         the taxable event occurs on or after 1 July 2008; or

            (b)         there is no current exempted property.

        (4a)         If the property conveyed by an instrument of conveyance was a share in a farming company, the discretionary trustee is not required to lodge a dutiable statement unless subsection (6) will apply if such a statement is lodged.

        (5)         If a dutiable statement is lodged in respect of a farming exemption for an instrument of conveyance referred to in section 75E(1)(e)(i) or (ii), the dutiable statement is taken to be an instrument operating as a voluntary disposition under section 75(1) of the current exempted property and is chargeable with duty accordingly.

        (6)         If —

            (a)         a dutiable statement is required to be lodged under this section in respect of a farming exemption for an instrument of conveyance that conveyed a share in a farming company;

            (b)         a section 76AG statement is required to be lodged in respect of the acquisition that is the subject of the instrument of conveyance; and

            (c)         at the date of the taxable event the relevant farming company is still beneficially entitled to farming land to which it was beneficially entitled when the acquisition referred to in paragraph (b) occurred,

                then the dutiable statement lodged under this section is taken to be an instrument operating as a voluntary disposition under section 75(1) of the relevant proportion of the farming land or of that part of the farming land and is chargeable with duty accordingly.

        [(7)         deleted]

        (8)         The amount of duty payable in respect of a dutiable statement lodged in respect of a farming exemption for an instrument of conveyance that conveyed an interest in a farming partnership or a share in a farming company is reduced (up to the amount of duty payable in respect of the dutiable statement) by the amount of any duty previously paid on the instrument of conveyance.

        [Section 75HA inserted by No. 20 of 1996 s. 34; amended by No. 60 of 2000 s. 20(3), (4) and (5); No. 2 of 2003 s. 73; No. 66 of 2003 s. 46 and 107(4); No. 12 of 2008 s. 14.]