DUTIES ACT 2001 - SECT 499 Reassessments of duty in particular circumstances

DUTIES ACT 2001 - SECT 499

499 Reassessments of duty in particular circumstances

(1) This section applies if—

(a) transfer duty has been assessed on an instrument, or transaction effected or evidenced by an instrument or ELN transaction document; and

(b) 1 of the events in subsection (2) happens.

(2) For subsection (1) (b) , the events are—

(a) before having any legal effect, the instrument or ELN transaction document is—

(i) inadvertently damaged, defaced or destroyed; or

(ii) in any way, rendered unfit for the purpose intended; or

(b) the instrument or ELN transaction document is void on its making; or

(c) the instrument or ELN transaction document was voidable on its making and is rendered void before having legal effect; or

(d) before having any legal effect, the instrument or ELN transaction document is unfit for the purpose intended because of an error or mistake in it; or

(e) the instrument or ELN transaction document has no legal effect, but on having legal effect would have an unintended effect because of a mistake in it, and is imposed with duty because of the unintended effect; or

(f) for a mortgage—

(i) the mortgagor is not and does not become, nor has a right to become, the owner of the property purported to be mortgaged; or

(ii) it secures an unlimited amount and the highest amount advanced under the mortgage has been wrongly overstated; or

(iii) duty has been wrongly paid on more than 1 instrument for the advance secured by the mortgage; or

(g) for a transfer—the transferor is not and does not become, nor has a right to become, the owner of the property purported to be transferred; or

(h) for a transfer by way of gift—the gift is not accepted by the donee.

(3) Even though the signing of an instrument or ELN transaction document by the parties is evidence the instrument or ELN transaction document gives effect to the intention of the parties, the instrument or ELN transaction document has an unintended effect for subsection (2) (e) if—

(a) when it was signed, the parties had a specific intention that was to be given effect to by the instrument or ELN transaction document; and

(b) the instrument or ELN transaction document does not give effect to the intention or gives effect to the intention but also achieves some other effect that was not contemplated by the parties.

(4) For this section an instrument or ELN transaction document is taken to have legal effect only if—

(a) a right has been exercised under it; or

(b) an obligation has been fulfilled under it; or

(c) it has been relied on in another way.

(5) The person may lodge an application for a reassessment in the approved form within 1 year after the event happens.

(6) The person must lodge the instrument, ELN transaction document or a copy of the ELN transaction document with the application.

(7) The commissioner must make a reassessment of duty for the instrument or transaction to which it relates.

(8) The commissioner may keep or otherwise dispose of the instrument, ELN transaction document or a copy of the ELN transaction document in the way the commissioner considers appropriate.