LAND TAX ACT 2005 - SECT 46IE Land tax for absentee discretionary trust with nominated beneficiary

LAND TAX ACT 2005 - SECT 46IE

    (1)     This section applies if the nomination of a nominated beneficiary for a discretionary trust that is an absentee trust is in force under section 46F.

    (2)     The nominated beneficiary is taken, for the purposes of this Act (other than Division 1 of Part 4) but for no other purpose, to be the owner of the pre-2006 land subject to the trust (but not to the exclusion of the trustee) and is to be assessed for land tax on that land accordingly, together with any other taxable land owned by the nominated beneficiary—

        (a)     if the nominated beneficiary is an absentee beneficiary, at the applicable rate set out in Part 4 of Schedule 1; and

        (b)     if the nominated beneficiary is not an absentee beneficiary, at the applicable rate set out in Part 1 of Schedule 1.

    (3)     The trustee of the trust is to be assessed for land tax on the whole of the land subject to the trust as if the land were the only land owned by the trustee—

        (a)     in respect of any pre-2006 land—at the applicable rate set out in Part 4 of Schedule 1; and

        (b)     in respect of any post-2006 land—at the applicable rate set out in Part 5 of Schedule 1.

    (4)     For the purposes of subsection (3), if the trust property includes both pre-2006 land and post-2006 land, the trustee is to be assessed in accordance with the following formula—

where—

    L     is the land tax assessed for the trustee;

    R ₁     is the applicable rate of land tax set out in Part 4 of Schedule 1;

    R ₂     is the applicable rate of land tax set out in Part 5 of Schedule 1;

    T     is the total taxable value of all taxable land subject to the trust;

    A     is the total taxable value of the pre‑2006 land subject to the trust;

    B     is the total taxable value of the post‑2006 land subject to the trust.

    (5)     There is to be deducted from any land tax payable by the nominated beneficiary under subsection (2) any land tax payable by the trustee under subsection (3) in respect of pre‑2006 land.

    (6)     Subsection (2) does not apply if the nominated beneficiary is the trustee.

S. 46IE(7) inserted by No. 38/2023 s. 41.

    (7)     If the trust also has a nomination in force under section 46H, there is to be added to the land tax payable by the trustee under subsection (3) on the whole of the land subject to the trust the amount (if any) determined by applying the applicable rate in Part 6 of Schedule 1 to the total taxable value of the land.

S. 46IF inserted by No. 26/2015 s. 32.