LAND TAX ACT 2005 - SECT 46C Land tax for unit trust scheme if unitholdings notified to Commissioner

LAND TAX ACT 2005 - SECT 46C

    (1)     A trustee of a unit trust scheme to which land is subject may lodge with the Commissioner a written notice of the unitholdings in the scheme.

S. 46C(2) substituted by No. 40/2014 s. 17.

    (2)     A notice must be in the form, and contain the information, determined by the Commissioner.

S. 46C(3) amended by No. 68/2007 s. 12, substituted by No. 40/2014 s. 17.

    (3)     A notice takes effect for the tax year following the year in which the notice is lodged and remains in force until it is withdrawn by the trustee.

S. 46C(3A) inserted by No. 40/2014 s. 17.

    (3A)     Despite subsection (1), if a trustee withdraws a notice that is in force under this section in respect of a unit trust scheme, the trustee cannot lodge another notice under this section in respect of that unit trust scheme.

    (4)     If a notice is in force under this section for a unit trust scheme—

        (a)     a unitholder in the scheme is deemed, for the purposes of this Act other than Division 1 of Part 4, to be the owner (but not to the exclusion of the trustee) of land subject to the scheme that bears the same proportion to the whole of the land subject to the scheme as the unitholder's unitholding in the scheme bears to the total unitholdings in the scheme, and is to be assessed for land tax on that land accordingly, together with any other taxable land owned by the unitholder, at the applicable rate set out in Part 1 of Schedule 1; and

        (b)     the trustee of the scheme is to be assessed for land tax on the whole of the land subject to the scheme 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 unitholder 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 unitholder's unitholding in the scheme to the total unitholdings in the scheme;

    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 unitholder is deemed by subsection (4)(a) to be the owner;

    D     is the total taxable value of all taxable land owned by the unitholder;

    E     is the amount of tax assessed on the unitholder under subsection (4)(a).

    (6)     Subsection (4)(a) does not apply to a unitholder who holds units as trustee of another trust.

Note

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

S. 46D inserted by No. 85/2005 s. 27.