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DUTIES ACT 2001 - SECT 173 Value of land-holdings and property—business property disregarded

DUTIES ACT 2001 - SECT 173

Value of land-holdings and property—business property disregarded

173 Value of land-holdings and property—business property disregarded

(1) For an acquisition of an interest in an entity that is a dutiable transaction to which chapter 2 , part 10 , applies, business property taken to have no value under the part must be disregarded in working out the unencumbered value of the land-holdings or property of the entity.
(2) For subsection (1) , a repealed s 97 (1) (f) transaction is taken to be a dutiable transaction to which chapter 2 , part 10 , applies.
(3) A
"repealed s 97(1)(f) transaction" is a transfer, or agreement for the transfer, of a marketable security in a corporation to which the following applies—
(a) the property of the corporation includes business property;
(b) the corporation is a family company for the transferee;
(c) the transferor or person directing the transfer is—
(i) if the business property is used to carry on a business of primary production—a defined relative of the transferee; or
(ii) otherwise—an ancestor of the transferee;
(d) the transferee does not acquire the marketable security as—
(i) trustee, other than as trustee of a trust for the beneficiaries mentioned in subsection (4) ; or
(ii) agent or nominee of another person;
(e) the business for which the business property is used is carried on by the defined relative or ancestor whether alone or with others;
(f) the business is intended to be carried on by the transferee, whether alone or with others.
(4) For subsection (3) (d) (i)
(a) the beneficiary of the trust is a minor, and—
(i) if the business property is used to carry on a business of primary production—the minor is a defined relative of the person creating the trust; or
(ii) otherwise—the minor is a descendant of the person creating the trust; and
(b) there are no other beneficiaries of the trust, other than a person who would become a beneficiary of the trust on the death of the beneficiary mentioned in paragraph (a) .
(5) In this section—


"family company" , for a person, means an exempt proprietary company at least 50% of the value of the shares of which are owned by members of the person’s family.