STAMP DUTIES ACT 1923 - SECT 71E

STAMP DUTIES ACT 1923 - SECT 71E

71E—Transactions otherwise than by dutiable instrument

        (1)         Subject to subsection (2), this section applies to a transaction in the following circumstances—

            (a)         the transaction results in a change in the ownership of a legal or equitable interest in—

                  (i)         land; or

                  (iii)         an interest in a partnership; and

            (b)         —

                  (i)         the transaction is not effected, or not wholly effected, by an instrument on which ad valorem duty is chargeable; but

                  (ii)         if the transaction had been effected, or wholly effected, by an instrument, the instrument would be chargeable with duty as a conveyance or as if it were a conveyance.

        (2)         This section does not apply to any of the following transactions—

            (a)         the appointment of a receiver or trustee in bankruptcy;

            (b)         the appointment of a liquidator;

            (c)         a compromise or arrangement under Part 5.1 of the Corporations Act 2001 of the Commonwealth;

            (e)         any other transaction of a prescribed class.

        (3)         Where a transaction to which this section applies is entered into, a statement in a form approved by the Commissioner must be lodged with the Commissioner setting out—

            (a)         the nature and effect of the transaction;

            (b)         a description of the property affected by the transaction;

            (c)         a statement of the value of any property to which the transaction relates;

            (d)         a statement of any consideration that has passed or is to pass between the parties to the transaction.

        (4)         Duty is payable on the statement as if it were a conveyance effecting the transaction to which it relates.

        (4a)         A statement under this section will, for the purposes of this Act, be taken to be an instrument executed by the person required to lodge the statement on the date of the change in legal or equitable ownership of property effected by the transaction to which the statement relates.

        (5)         Where a statement is lodged with the Commissioner under this section—

            (a)         any instrument that relates to the same transaction is not chargeable with duty to the extent to which duty has been paid on the statement; and

            (b)         the statement will not be charged with duty to the extent that duty has been paid on any instrument that relates to the same transaction.

        (6)         If a statement relating to a transaction to which this section applies is not lodged with the Commissioner in accordance with this section within two months after a change in legal or equitable ownership of property is effected by the transaction—

            (a)         each party to the transaction is guilty of an offence; and

            (b)         the parties to the transaction are nevertheless jointly and severally liable to pay duty to the Commissioner as if such a statement had been lodged with the Commissioner immediately before the end of that period of two months.

        (7)         A person who aids, abets, counsels or procures another person to enter into a transaction to which this section applies knowing that none of the parties to the transaction intends to lodge a statement under this section is guilty of an offence.

        (8)         A person who is guilty of an offence against this section is liable to a fine not exceeding $10 000.

        (9)         If a statement relating to a transaction to which this section applies is lodged with the Commissioner but it is subsequently established to the satisfaction of the Commissioner that the transaction is not to be completed, the Commissioner may refund any duty paid on the statement.