Victorian Consolidated Legislation

Land Tax Act 2005 - SECT 46C

Land tax for unit trust scheme if unitholdings notified to Commissioner

46C. Land tax for unit trust scheme if unitholdings notified to Commissioner



(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.

(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 scheme 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 scheme is post-2006 land-in the year
        in which the land first became subject to the scheme.

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and remains in force until it is withdrawn by the trustee.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