Victorian Consolidated Legislation

Land Tax Act 2005 - SECT 46D

Land tax for beneficiary/trustees

46D. Land tax for beneficiary/trustees



(1) For the purposes of this Act-

   (a)  a person who holds a beneficial interest in land subject to a fixed
        trust in respect of which a notice is in force under section 46B (the
        first trust) as trustee of another trust (the second trust) is deemed
        to be the owner of land subject to the first trust that bears the same
        proportion to the whole of the land subject to the first trust as the
        person's beneficial interest in the land subject to the first trust
        bears to the total beneficial interests in land subject to the first
        trust;





   (b)  a person who holds units in a unit trust scheme in respect of which a
        notice is in force under section 46C (the first scheme) as trustee of
        another trust (the second trust) is deemed, for the purposes of this
        Act other than Division 1 of Part 4, to be the owner of land subject
        to the first scheme that bears the same proportion to the whole of the
        land subject to the first scheme as the person's unitholding in the
        first scheme bears to the total unitholdings in the first scheme.

(2) For the purposes of this section, a person referred to in subsection (1)
is called a beneficiary/trustee.

(3) There is to be deducted from any land tax payable by a beneficiary/trustee
on land that is subject to the second trust an amount (if any) necessary to
avoid double taxation, being the lesser of-

   (a)  the amount determined by the formula:

where-
A is-

   (a)  the proportion of the beneficiary/trustee's beneficial interest in
        land subject to the first trust to the total beneficial interests in
        land subject to the first trust; or

   (b)  the proportion of the beneficiary/trustee's unitholding in the first
        scheme to the total unitholdings in the first scheme;
B is the total amount of tax assessed on the trustee of the first trust or the
first scheme on the whole of the land subject to the first trust or first
scheme; and

   (b)  the amount determined by the formula:

where-
C is the taxable value of the land of which the beneficiary/trustee is deemed
by subsection (1) to be the owner;
D is the total taxable value of all taxable land owned by the
beneficiary/trustee that is subject to the second trust;
E is the amount of tax assessed under this Act on the beneficiary/trustee in
respect of all taxable land owned by the beneficiary/trustee that is subject
to the second trust.