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subsection (1) , a repealed s 97(1) (f) transaction is taken to be a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"repealed s 97(1)(f) transaction" is a transfer, or agreement for the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
(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.