South Australian Consolidated Acts South Australian Consolidated Acts13A—Commissioner may determine that minor interest is to be disregarded
(1) In this
section—
"prescribed interest"—see subsections (2) and (3);
"prescribed land" means land where 2 or more persons are the owners of the
land;
"transaction" includes any form of conveyance, transfer, contract, agreement
or arrangement (whether or not in writing).
(2) If a person's
interest in prescribed land is 5% or less, subsection (5) will apply in
relation to the interest (a "prescribed interest ) unless the Commissioner, on
the application of a person who, as an owner of the prescribed land, has an
interest exceeding 5% in the land, is satisfied that there is no doubt that
the interest was created solely for a purpose, or entirely for purposes,
unrelated to reducing the amount of land tax payable in respect of the land,
or any other piece of land.
(3) If a person's
interest in prescribed land exceeds 5% but is less than 50%,
subsection (5) will apply in relation to the interest (a
"prescribed interest") if the Commissioner forms the opinion that the purpose,
or 1 of the purposes, for the creation of the interest was to reduce the
amount of land tax payable in respect of the land, or any other piece of land.
(4) For the purposes
of subsections (2) and (3), the Commissioner may have regard to—
(a) the
nature of any relationships between the owners of the land, or between the
owners of 2 or more pieces of land; and
(b) the
lack of consideration, or the amount, value or source of the consideration,
provided in association with the creation of the interest; and
(c) the
form and substance of any transaction associated with the creation or
operation of the interest, including the legal and economic obligations of the
parties and the economic and commercial substance of any such transaction; and
(d) the
way in which any transaction associated with the creation or operation of the
interest was entered into or carried out; and
(e) any
other matter the Commissioner considers relevant.
(5) If this subsection
applies in relation to a prescribed interest under this section—
(a) the
person holding the prescribed interest is to be taken not to be an owner of
the land for the purposes of this Act; and
(b) the
land tax payable in respect of the land is to be assessed, and is payable, as
if the land were wholly owned by the owner or owners of the land who do not
hold the prescribed interest (or, if relevant, any such prescribed interest).
(6) However, a
preceding subsection will not apply for the purposes of the other provisions
of this Act if the effect is to decrease the amount of land tax payable in
respect of any land.
(7) If
the Commissioner decides to reject an application of an owner of land under
subsection (2), the Commissioner must give notice of the decision to the
owner—
(a)
stating the decision; and
(b)
stating the grounds on which the decision is based.
(8) If
the Commissioner forms an opinion under subsection (3) so as to give rise
to the application of subsection (5), the Commissioner must give notice
of the operation of subsection (5) to each owner of the land—
(a)
stating the fact that the opinion has been formed, and setting out its effect
under this section; and
(b)
stating the grounds on which the opinion is based.
(9) For the purposes
of this section—
(a) a
reference to an interest in land is a reference to the estate, interest,
right, benefit or fact of occupation that makes a person an owner of land
under this Act; and
(b) an
interest may be or become subject to the operation of this section no matter
when it was created, including in a case where the interest was created before
the commencement of this section.