LAND TAX ACT 2005 - SECT 46ID Land tax for beneficiary/trustees
LAND TAX ACT 2005 - SECT 46ID
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 (that is an absentee 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 taken, for the purposes of this Act, 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; and
(b) a person who holds units in a unit trust scheme (that is an absentee trust) in respect of which a notice is in force under section 46C ( the first scheme ) as trustee of another trust ( the second trust ) is taken, 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 .
S. 46ID(2A) inserted by No. 40/2016 s. 24(1).
(2A) Subsection (3) applies to—
(a) a beneficiary/trustee who holds a beneficial interest in the land subject to the first trust as an absentee beneficiary and all of the beneficial interests in the land subject to the first trust are beneficial interests of absentee beneficiaries; or
(b) a beneficiary/trustee who holds a unitholding in the first scheme as an absentee beneficiary and all of the unitholdings in the first scheme are held by unitholders who are absentee beneficiaries.
(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—
S. 46ID(3)(a) substituted by Nos 40/2016 s. 24(2), 67/2017 s. 19(1), amended by Nos 17/2019 s. 40(1), 18/2023 s. 30(1).
(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 that part of 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 determined by applying the applicable rate set out in Part 1 of Schedule 1 on the whole of the land subject to the first trust or first scheme;
C is—
(a) if the second trust is an absentee trust that is a discretionary trust, 100% of interests in all land subject to the discretionary trust; or
(b) in all other cases, the absentee proportion of interests in all land subject to the second trust;
D is the taxable value of the land of which the beneficiary/trustee is taken by subsection (1) to be the owner; and
(b) the amount determined by the formula—
where—
C is the taxable value of the land of which the beneficiary/trustee is taken 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.
S. 46ID(4) inserted by No. 40/2016 s. 24(3).
(4) Subsection (5) applies to—
(a) a beneficiary/trustee who holds a beneficial interest in the land subject to the first trust as an absentee beneficiary and at least one, but not all, of the beneficial interests in the land subject to the first trust is a beneficial interest of a beneficiary who is not an absentee beneficiary; or
(b) a beneficiary/trustee who holds a unitholding in the first scheme as an absentee beneficiary and at least one, but not all, of the unitholdings in the first scheme is held by a unitholder who is not an absentee beneficiary.
S. 46ID(5) inserted by No. 40/2016 s. 24(3).
(5) 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—
S. 46ID(5)(a) substituted by No. 67/2017 s. 19(2), amended by Nos 22/2018 s. 25, 17/2019 s. 40(2), 18/2023 s. 30(2).
(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 that part of 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 determined by applying the applicable rate set out in Part 1 of Schedule 1 on the whole of the land subject to the first trust or first scheme;
C is—
(a) if the second trust is an absentee trust that is a discretionary trust, 100% of interests in all land subject to the discretionary trust; or
(b) in all other cases, the absentee proportion of interests in all land subject to the second trust;
D is the taxable value of the land of which the beneficiary/trustee is taken by subsection (1) to be the owner; and
(b) the amount determined by the formula—
where—
C is the taxable value of the land of which the beneficiary/trustee is taken 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.
S. 46ID(6) inserted by No. 40/2016 s. 24(3).
(6) Subsection (7) applies to—
(a) a beneficiary/trustee who holds a beneficial interest in the land subject to the first trust not as an absentee beneficiary and at least one, but not all, of the beneficial interests in the land subject to the first trust is a beneficial interest of a beneficiary who is an absentee beneficiary; or
(b) a beneficiary/trustee who holds a unitholding in the first scheme not as an absentee beneficiary and at least one, but not all, of the unitholdings in the first scheme is held by a unitholder who is an absentee beneficiary.
S. 46ID(7) inserted by No. 40/2016 s. 24(3).
(7) 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 that part of 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 determined by applying the applicable rate set out in Part 1 of Schedule 1 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 taken 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.
S. 46IE inserted by No. 26/2015 s. 32.