DUTIES ACT 2001 - SECT 63
What is the value of a trust acquisition or trust surrender
DUTIES ACT 2001 - SECT 63
What is the value of a trust acquisition or trust surrender
63 What is the value of a trust acquisition or trust surrender
(1) Subject to subsections (6) to (8) , the value of a trust acquisition or
trust surrender is the total of the amounts worked out by applying the
beneficiary’s trust interest to the unencumbered value, when the liability
for transfer duty arises, of—
(a) the dutiable property held by the trust
(the
"relevant trust" ); and
(a) first applying to the
unencumbered value of the dutiable property held by the ultimate entity, the
trust or partnership interest of the trust or partnership (the
"last beneficiary or partner" ) that is a beneficiary or partner of the
ultimate entity; and
(c) applying
the calculation in paragraph (b) for each of the other trusts or partnerships
in the series until the first entity’s trust interest or partnership
interest is used in the calculation; and
(d) applying to the amount last
worked out under paragraph (c) and the unencumbered value of any
dutiable property held by the first entity, the trust or partnership interest
of the relevant trust.
(5) Schedule 4 contains an example of how the value of
a trust acquisition is worked out.
(6) For determining the value of a
beneficiary’s trust acquisition that is an increase in the beneficiary’s
trust interest, other than a majority trust acquisition, the beneficiary’s
trust interest is taken to be the increase in the beneficiary’s trust
interest.
(7) Subsection (8) applies to a majority trust acquisition that is
an increase in a beneficiary’s trust interest (the
"relevant trust acquisition" ) that has happened in the following
circumstances—
(a) the trust interest of the beneficiary and related persons
of the beneficiary was 50% or more immediately before the
relevant trust acquisition;
(b) transfer duty was previously paid for a
majority trust acquisition in the trust made by the beneficiary or related
persons;
(c) since the majority trust acquisition mentioned in paragraph (b)
, no other related person of the beneficiary has made a trust acquisition in
the trust.
(8) For determining the value of the beneficiary’s trust
acquisition that is the relevant trust acquisition, the beneficiary’s trust
interest is taken to be the increase in the beneficiary’s trust interest.