DUTIES ACT 2001 - SECT 38 When consignment of trading stock of Queensland business is a dutiable transaction

DUTIES ACT 2001 - SECT 38

38 When consignment of trading stock of Queensland business is a dutiable transaction

(1) This section applies if—

(a) the owner of a Queensland business transfers or agrees to transfer a Queensland business asset, other than trading stock of the business, to a person (the
"new owner" ); and

(b) the owner places all or most of the trading stock on consignment for sale by a person, whether or not the new owner, (the
"consignee" ) in the conduct of the business by the new owner; and

(c) having regard to the terms of the consignment it is reasonable to conclude that the consignment is, or is part of, an arrangement to avoid transfer duty.

(2) Without limiting subsection (1) (c) , the terms of the consignment include the following—

(a) the amount payable to the owner by the consignee and the terms of payment;

(b) the price ultimately payable to the owner for the trading stock and the way in which it is worked out;

(c) the basis of working out the consignee’s commission;

(d) the right of the consignee to mix the trading stock with other property not owned by the owner;

(e) the right of the consignee to deal with the trading stock as if it were the consignee’s or other than as agent of the owner.

(3) The placing of the trading stock on consignment is taken to be a transfer of the stock.

Note—

Accordingly, the transfer is a dutiable transaction being the transfer of a Queensland business asset because trading stock is a business asset being personal property.