Western Australian Consolidated Acts Western Australian Consolidated Acts (1) Where any property
or estate or interest therein ( the property ) is agreed to be conveyed or
transferred, or is conveyed or transferred, to any person subject to the
exercise of an option to purchase the property, whether the option is
exercisable in writing or otherwise, the agreement or the conveyance or
transfer, as the case may be, is chargeable with duty as a conveyance or
transfer of the property and the consideration for such conveyance or transfer
shall be deemed to be an amount equal to the sum of —
(a) the
amount paid by way of consideration for the granting of the option; and
(b) the
amount payable in the event of the option being exercised.
(2) Each of the
parties to an agreement, conveyance or transfer referred to in
subsection (1) is liable to pay the duty with which it is chargeable.
(3) Section 73AA
does not apply to a conveyance or transfer referred to in subsection (1).
(4) Where ad valorem
duty has been duly paid in conformity with subsection (1) on an agreement
the conveyance or transfer made in conformity with the agreement shall be
chargeable with duty under item 6 of the Second Schedule.
(5) Where, after ad
valorem duty has been paid in conformity with subsection (1), the
Commissioner is satisfied —
(a) that
the option referred to in that subsection has not been exercised and that the
time within which that option may be exercised has expired; and
(b)
where the property was conveyed or transferred to the person to whom the
option was granted —
(i)
that the property has been reconveyed or retransferred to
the person from whom it was conveyed or transferred or to a person to whom his
rights have been transmitted on death or bankruptcy; and
(ii)
that the person to whom the option was granted did not,
prior to the reconveyance or retransfer of the property, exercise or receive
any right or benefit in respect of the property being a right or benefit of a
kind normally exercisable or receivable only by the beneficial owner of
property,
then —
(c) the
duty chargeable on the agreement or the conveyance or transfer (as the case
may be) is reduced to the amount of duty that would have been payable if the
consideration had been the amount referred to in subsection (1)(a) only;
and
(d) any
reconveyance or retransfer referred to in paragraph (b) is chargeable
with duty under item 6 of the Second Schedule.
(5a) Subject to
section 17 of the Taxation Administration Act 2003 , the
Commissioner must make any reassessment necessary to give effect to this
section.
(5b) For the purposes
of subsection (5a), section 17 of the Taxation Administration
Act 2003 applies as if the original assessment had been made —
(a) when
the reconveyance or retransfer referred to in subsection (5)(b)(i)
occurred; or
(b) on
the expiry, referred to in subsection (5)(a), of the time within which
the option could have been exercised,
whichever is later.
(6) Where ad valorem
duty has been duly paid in conformity with subsection (1) any agreement
made in pursuance of and by the exercise of the option referred to in that
subsection shall not be chargeable with any further duty.
[Section 73A inserted by No. 63 of 1977
s. 3; amended by No. 37 of 1979 s. 48; No. 81 of 1984
s. 16; No. 2 of 2003 s. 50.]