(1) This section
applies to a dutiable transaction to which an exempt body is a party
if —
(a) the
exempt body would, apart from subsection (2), be liable to pay duty
chargeable on the transaction; and
(b) at
least one other party to the transaction is liable to pay duty chargeable on
the transaction and is not an exempt body.
(2) The exempt body is
not liable to pay duty on the transaction.
(3) The amount of duty
payable on the transaction (AD) is the amount determined under the
formula —
where —
TD is the amount of
duty that would be payable on the transaction if this section did not apply to
it;
EI is —
(a) if
the interest in the dutiable property that the exempt body has under the
transaction is of a kind that enables the proportion which that interest bears
to the whole of the dutiable property to be ascertained — that
proportion expressed as a percentage; or
(b) in
any other case — a percentage determined by the Commissioner to
represent the proportion which the interest in the dutiable property that the
exempt body has under the transaction bears to the whole of the dutiable
property.
(4) The amount of duty
payable by any party referred to in subsection (1)(b) is the amount AD
determined under subsection (3).
Note: For example, an
exempt body and another party acquire dutiable property as tenants in common.
The exempt body acquires 40 of 100 undivided shares and the other party
acquires 60 of 100 undivided shares. But for this section the transfer duty
chargeable on the transaction would be $3 000. Under the operation of
this section the amount of duty payable on the transaction is calculated as
follows:
This amount (i.e.
$1 800) is the amount of transfer duty payable by the other party.