Victorian Consolidated Legislation

Land Tax Act 2005 - SECT 46B

Land tax for fixed trust if beneficial interests notified to Commissioner

46B. Land tax for fixed trust if beneficial interests notified to Commissioner



(1) A trustee of a fixed trust to which land is subject may lodge with the
Commissioner a written notice of the beneficial interests in the land.

(2) A notice must-

   (a)  be in the form, and contain the information, determined by the
        Commissioner; and

   (b)  be lodged with the Commissioner on or before-

   (i)  if any of the land subject to the trust is pre-2006 land-the later of
        30 June 2006 or 3 months after the day on which a liability first
        arises for land tax on the land; or

   (ii) if the only land subject to the trust is post-2006 land-in the year in
        which the land first became subject to the trust.

(3) A notice takes effect-

   (a)  for the 2006 tax year if it is lodged on or before 30 June 2006 in
        respect of pre-2006 land; or

   (b)  in any other case, for the tax year in respect of which the notice is
        lodged-

and remains in force until it is withdrawn by the trustee.

(4) If a notice is in force under this section for a fixed trust-

   (a)  a beneficiary of the trust is deemed to be the owner (but not to the
        exclusion of the trustee) of land subject to the trust that bears the
        same proportion to the whole of the land subject to the trust as the
        beneficiary's beneficial interest in land subject to the trust bears
        to the total beneficial interests in land subject to the trust, and is
        to be assessed for land tax on that land accordingly, together with
        any other taxable land owned by the beneficiary, at the applicable
        rate set out in Part 1 of Schedule 1; and

   (b)  the trustee of the trust is to be assessed for land tax on the whole
        of the land subject to the trust at the applicable rate set out in
        Part 1 of Schedule 1, as if the land were the only land owned by the
        trustee.

(5) There is to be deducted from the land tax payable by a beneficiary under
subsection (4)(a) an amount (if any) necessary to avoid double taxation, being
the lesser of-

   (a)  the amount determined by the formula:

where-
A is the proportion of the beneficiary's beneficial interest in land subject
to the trust to the total beneficial interests in land subject to the trust;
B is the total amount of tax assessed on the trustee under subsection (4)(b);
and

   (b)  the amount determined by the formula:

where-
C is the taxable value of the land of which the beneficiary is deemed by
subsection (4)(a) to be the owner;
D is the total taxable value of all taxable land owned by the beneficiary;
E is the amount of tax assessed on the beneficiary under subsection (4)(a).

(6) For the purposes of this section, the trustee's right of indemnity from
the trust property is taken not to be a beneficial interest in the land
subject to the trust.

(7) Subsection (4)(a) does not apply to a beneficiary who holds a beneficial
interest as trustee of another trust.

Note Section 46D(1)(a) deems such a person to be the owner of land.