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DUTIES ACT 2000 - SECT 250A What is an eligible transaction?

DUTIES ACT 2000 - SECT 250A

What is an eligible transaction?

    (1)     For the purposes of this Division, an "eligible transaction" is any of the following—

        (a)     a transfer of dutiable property from one member of a corporate group to another member of the group;

        (b)     a vesting of dutiable property by, or as a consequence of, a court order where the property was held by one member of a corporate group and is vested in another member of the group;

        (c)     the granting of a lease referred to in section 7(1)(b)(v) by one member of a corporate group to another member of the group;

        (d)     the transfer or assignment of a lease referred to in section 7(1)(b)(va) from one member of a corporate group to another member of the group;

        (e)     an application referred to in section 214(1) for the registration or transfer of registration of a motor vehicle as a result of a transfer of the vehicle from one member of a corporate group to another member of the group;

        (f)     a dutiable transaction to which section 14 applies between members of a corporate group;

        (g)     a relevant acquisition to which section 83 applies by a member of a corporate group from another member of the group;

        (h)     a declaration of trust relating to dutiable property the specification of which forms part of the declaration of trust or part of the transaction constituted by the declaration of trust by one member of a corporate group under which the dutiable property is held on trust for another member of the group;

              (i)     any other transaction that results in the beneficial ownership of dutiable property (other than an excluded transaction) moving from one member of a corporate group to another member of the group.

    (2)     For the purposes of this Division, an eligible transaction is also any of the following that occurs solely for the purposes of a corporate consolidation

        (a)     a transfer of dutiable property from a shareholder or unitholder of a corporation to the head company;

        (b)     a vesting of dutiable property by, or as a consequence of, a court order where the property was held by a shareholder or unitholder of a corporation and is vested in the head company;

        (c)     the granting of a lease referred to in section 7(1)(b)(v) by a shareholder or unitholder of a corporation to the head company;

        (d)     the transfer or assignment of a lease referred to in section 7(1)(b)(va) from a shareholder or unitholder of a corporation to the head company;

        (e)     an application referred to in section 214(1) for the registration of a motor vehicle or for the transfer of registration of a motor vehicle as a result of a transfer of the vehicle from a shareholder or unitholder of a corporation to the head company;

        (f)     a dutiable transaction to which section 14 applies between a shareholder or unitholder of a corporation and the head company;

        (g)     a relevant acquisition to which section 83 applies—

              (i)     by the head company from a shareholder or unitholder of a corporation; or

              (ii)     by a shareholder or unitholder of a corporation from the head company;

        (h)     a declaration of trust relating to dutiable property the specification of which forms part of the declaration of trust or part of the transaction constituted by the declaration of trust by the head company under which the dutiable property is held on trust for a shareholder or unitholder of a corporation;

              (i)     any other transaction that results in the beneficial ownership of dutiable property (other than an excluded transaction) moving from a shareholder or unitholder of a corporation to the head company.

    (3)     Despite subsection (2), a transaction is not an eligible transaction unless—

        (a)     the only consideration provided by the head company for the transaction consists of the issue of shares in the head company to the shareholders or unitholders of the corporation; and

        (b)     immediately after the issue of shares in the head company, all the shareholders in the head company are persons who were shareholders or unitholders in the corporation immediately before their shares or units were acquired by the head company.

    (4)     Subsection (3)(a) does not apply to a transaction referred to in subsection (2)(g)(ii).

    (5)     Despite subsections (1)(a) and (2)(a), a transfer of dutiable property from one member of a corporate group to another member of the group is not an eligible transaction if—

        (a)     the dutiable property is transferred under an agreement; and

        (b)     at the time the agreement was entered into, the vendor and the purchaser were not members of the same corporate group or substantially the same corporate group.

    (6)     For the purposes of subsection (5)—

        (a)     a reference to a vendor includes a reference to a person who, at the time the agreement was entered into, was the grantee of a put option or the grantor of a call option; and

        (b)     a reference to a purchaser includes a reference to a person who, at the time the agreement was entered into—

              (i)     held a transfer right (within the meaning of Part 4A of Chapter 2); or

              (ii)     was the grantor of a put option or the grantee of a call option; and

        (c)     a reference to an agreement includes a reference to an arrangement that includes both a put option and a call option.

    (7)     Despite anything to the contrary in subsection (1) or (2), the addition or omission of one or more subsidiaries of the parent corporation is not an eligible transaction.

S. 250AB inserted by No. 47/2020 s. 17.