Northern Territory Consolidated Acts

STAMP DUTY ACT - SECT 56BC

(1) This section applies if:

(a) there is a conveyance to a person ( the first person ) of an option ( the call option ) to require another person ( the second person ) to convey to the first person, or to a person with whom the first person has an agreement, arrangement or understanding ( a third person ), dutiable property; and

(b) the second person has an option ( the put option ) to require the first person or a third person referred to in paragraph (a) to be the conveyee in a conveyance of the dutiable property from the second person.

(2) The conveyance of the call option is taken to be a conveyance of the option property from the second person to the first person and duty is payable by the first person accordingly.

(3) The conveyance of the option property is taken to have occurred when the later of the conveyance of the call option occurs or the put option comes into existence.

(4) Duty is payable by the first person under subsection (2):

(a) regardless of when the call option or the put option is exercisable; and

(b) even though the call option or the put option is exercisable over dutiable property in addition to the option property.

(5) The duty imposed is payable on the greater of:

(a) the sum of the consideration for the conveyance of the call option over the option property and the consideration for the exercise of the call option over the option property; or

(b) the unencumbered value of the option property.

(6) If, as a result of the exercise of the call option or the put option, the option property is conveyed from the second person to the first person, the ad valorem duty payable on the conveyance is reduced by the amount of duty paid or payable by the first person under subsection (2).

(7) If the option property is conveyed to a third person, the reduction of ad valorem duty available to the first person under subsection (6) will only extend to the third person if the Commissioner is satisfied:

(a) that:

(i) the first person was, at the time of the transfer of the call option, acting as agent of the third person; or

(ii) the third person is a corporation or the trustee of a trust that the first person was, at the time of the transfer of the call option, in the process of incorporating, establishing or acquiring; and

(b) that there has been no sub-sale or other dutiable dealing with the option property between the time of the transfer of the call option and the conveyance to the third person.