DUTIES ACT 2001 - SECT 122 Exemption—restructure of stapled entities

DUTIES ACT 2001 - SECT 122

122 Exemption—restructure of stapled entities

(1) Transfer duty is not imposed on a dutiable transaction that is a trust acquisition or trust surrender of a trust interest in a listed unit trust or a widely held unit trust if—

(a) the purpose of the transaction is to give effect to a scheme that qualifies or would, on its completion, qualify as a roll-over under the Income Tax Assessment Act 1997 (Cwlth) , subdivision 124.Q ; and

(b) when the scheme is completed, the interposed trust will be a listed unit trust or a widely held unit trust; and

(c) the transaction is not part of an arrangement to avoid the imposition of transfer duty.

(2) Subsection (1) does not apply if—

(a) the interposed trust is not a listed unit trust or a widely held unit trust when the scheme is completed; or

(b) the interposed trust ceases to be a listed unit trust or a widely held unit trust within 3 years after the scheme is completed; or

(c) the interposed trust does not retain all the ownership interests in the stapled entities for at least 3 years after the date of the transaction.

(3) Despite subsection (2) (c) , subsection (1) continues to apply if the commissioner is satisfied the interposed trust did not retain all the ownership interests because 1 or more of the stapled entities ceased to exist other than under an arrangement, a significant purpose of which was to avoid the requirement to retain all the ownership interests for at least 3 years.

(4) If subsection (1) does not apply, the commissioner must make a reassessment to impose transfer duty on the transaction as if the exemption from duty had never applied.

(5) Subsection (4) applies to the reassessment despite the limitation period under the Administration Act for reassessments.

Note—

See the Administration Act , part 3 , division 3 .

(6) If an event mentioned in subsection (2) happens, a party to the transaction must, within 28 days after the event happens—

(a) give notice of the event to the commissioner in the approved form; and

(b) ensure the instruments required for the assessment of duty on the transaction are lodged for reassessment.

Note—

Failure to give the notice is an offence under the Administration Act , section 120 .

(7) Without limiting subsection (3) , a company registered under the Corporations Act ceases to exist if it is deregistered under that Act.