Mortgage duty associated with particular debenture issues
266 Mortgage duty associated with particular debenture issues
(1) This
section applies if—
(a) a corporation offers debentures to the public for
subscription; and
(b) the corporation is a party to an instrument of trust
relating to the debentures; and
(c) a mortgage secures the repayment of
debentures issued by the corporation.
(2) Mortgage duty must be assessed on
the mortgage for the offer of debentures as if it were a mortgage securing the
payment of an amount equal to the total amount of debentures, other than
exempt short-term debentures, subscribed for by the public in Queensland from
time to time.
(3) On or before 31 July in each year, the trustee under the
instrument of trust must—
(a) lodge a statutory declaration stating the
total amount subscribed for in Queensland for the corporation’s debentures
and exempt short-term debentures in the year ending on the previous 30 June;
and
(b) pay to the commissioner mortgage duty on the amount subscribed for in
the year for the debentures, other than exempt short-term debentures.
(4) If
mortgage duty is paid under subsection (3) , the instrument of trust and
debentures are not liable to duty under this Act.
(5) In this section, a
reference to an amount subscribed for relating to debentures does not include
an amount represented by debentures issued on the conversion or renewal of an
existing holding of debentures or other marketable securities.
