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TASMANIA
__________
TAXATION LEGISLATION (MISCELLANEOUS
AMENDMENTS) BILL 2006
__________
CONTENTS
PART 1 - PRELIMINARY
1. Short title
2. Commencement
PART 2 - DUTIES ACT 2001 AMENDED
3. Principal Act
4. Section 3 amended (Interpretation)
5. Section 9 amended (What is dutiable property?)
6. Section 25 amended (Partnership interests)
7. Chapter 3, Part 5 inserted
PART 5 - Transactions involving put and call options
Division 1 - Making of put and call option
91. Application of Act to put and call option, &c.
92. When does liability for duty arise?
Division 2 - Assignment of rights under put and call option
93. Duty chargeable on assignment of rights under put
and call option
94. When does liability for duty arise?
Division 3 - Dutiable value of property subject to put and call
option or call option assignment
95. Dutiable value of property subject to put and call
option or call option assignment
Division 4 - No double duty
96. No double duty
[Bill 52]-X
Division 5 - Exemptions
97. Exemptions
8. Section 192 amended (Imposition of duty)
9. Section 196A inserted
196A. Effect of failure to pay duty
10. Section 204 amended (Exemptions for motor dealers)
11. Section 207 amended (Form of exemption certificate)
12. Section 214 substituted
214. Applicable exemptions
13. Section 216 amended (Change of purpose)
14. Section 217 amended (Duty payable in certain circumstances)
15. Section 248 amended (Assessment where consideration
inadequate)
PART 3 - DUTIES ACT 2001 FURTHER AMENDED
16. Principal Act
17. Section 13 amended (Necessity for written instrument or written
statement)
18. Section 14 amended (Lodging written instrument or written
statement with Commissioner)
19. Section 22 amended (Aggregation of dutiable transactions)
20. Section 231 amended (Stamping of instruments)
PART 4 - LAND TAX ACT 2000 AMENDED
21. Principal Act
22. Section 6 amended (Principal residence land)
23. Section 19 amended (Other exempt land)
24. Section 24 amended (Aggregate land value)
25. Section 26 amended (Apportioned assessed land value for
principal residence land)
26. Section 38 amended (Special rate of land tax)
27. Section 39 amended (Recovery of unpaid land tax)
28. Section 42 amended (Searches)
2
PART 5 - PAY-ROLL TAX ACT 1971 AMENDED
29. Principal Act
30. Section 2 amended (Interpretation)
31. Section 11A amended (Annual adjustments)
32. Section 11J amended (Group members jointly and severally
liable for payment)
PART 6 - TAXATION ADMINISTRATION ACT 1997 AMENDED
33. Principal Act
34. Part 11, Division 3A inserted
Division 3A - Tax avoidance
113A. Purpose and operation of Division 3A
113B. Application of Division 3A
113C. Matters to be considered when determining purpose
of scheme
113D. When tax benefit obtained
113E. Amount of tax benefit
113F. Assessments and reassessments if tax benefit
obtained from scheme
PART 7 - TAXATION ADMINISTRATION ACT 1997 FURTHER
AMENDED
35. Principal Act
36. Section 50 amended (Application for approval)
37. Section 52 amended (Effect of approval)
38. Section 118A amended (Administrative fee)
3
4
TAXATION LEGISLATION (MISCELLANEOUS
AMENDMENTS) BILL 2006
(Brought in by the Premier, the Honourable Paul Anthony
Lennon)
A BILL FOR
An Act to amend the Duties Act 2001, the Land Tax Act
2000, the Pay-roll Tax Act 1971 and the Taxation
Administration Act 1997
Be it enacted by His Excellency the Governor of Tasmania, by
and with the advice and consent of the Legislative Council and
House of Assembly, in Parliament assembled, as follows:
PART 1 - PRELIMINARY
1. Short title
This Act may be cited as the Taxation
Legislation (Miscellaneous Amendments) Act
2006.
2. Commencement
(1) Except as provided in this section, this Act
commences on the day on which this Act
receives the Royal Assent.
(2) Parts 3 and 7 commence on 1 January 2007, but
if this Act does not receive Royal Assent on or
before that day those Parts are taken to have
commenced on 1 January 2007.
[Bill 52] 5
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
s. 2 Part 1 - Preliminary
(3) Parts 4 and 5 commence on 1 July 2007.
6
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
Part 2 - Duties Act 2001 Amended s. 3
PART 2 - DUTIES ACT 2001 AMENDED
3. Principal Act
In this Part, the Duties Act 2001* is referred to
as the Principal Act.
4. Section 3 amended (Interpretation)
Section 3 of the Principal Act is amended as
follows:
(a) by inserting the following definitions
after the definition of "business asset":
"call option" means a right, conferred
by an agreement or arrangement,
to acquire dutiable property;
"call option assignment" means the
assignment of a right, under a put
and call option, to acquire
dutiable property;
(b) by inserting the following definitions
after the definition of "public unit trust
scheme":
"put and call option" means an
agreement or arrangement that
provides for both a call option
and a put option in respect of the
same dutiable property;
*No. 15 of 2001
7
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
s. 5 Part 2 - Duties Act 2001 Amended
"put option" means a right, conferred
by an agreement or arrangement,
to require a person to acquire
dutiable property;
5. Section 9 amended (What is dutiable property?)
Section 9(1)(j)(v) of the Principal Act is
amended by omitting "vehicle;" and substituting
"vehicle that is not exempted from motor tax
under the Vehicle and Traffic Act 1999 or the
Transport Act 1981;".
6. Section 25 amended (Partnership interests)
Section 25 of the Principal Act is amended by
inserting after subsection (2) the following
subsections:
(3) If the property of a partnership includes a
land-related asset and an interest in the
land-related asset is transferred as a
result of the transfer of a partnership
interest, the unencumbered value of all
dutiable property of the partnership ("X"
in subsection (1)) is to be reduced by the
unencumbered value of the interest in the
land-related asset that is transferred, but
only if ad valorem duty has been paid or
is payable on the transfer of the interest
in the land-related asset.
8
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
Part 2 - Duties Act 2001 Amended s. 7
(4) For the purposes of subsection (3), each
of the following items of dutiable
property is a land-related asset:
(a) land in Tasmania;
(b) a land use entitlement;
(c) an interest in an item of dutiable
property referred to in
paragraph (a) or (b).
7. Chapter 3, Part 5 inserted
After section 90 of the Principal Act, the
following Part is inserted in Chapter 3:
PART 5 - TRANSACTIONS INVOLVING PUT AND
CALL OPTIONS
Division 1 - Making of put and call option
91. Application of Act to put and call option, &c.
For the purposes of this Act, a put and
call option is taken to be an agreement
for sale of dutiable property referred to in
section 6(1)(b)(i) and, accordingly -
(a) duty is chargeable on the put and
call option under Chapter 2; and
(b) the dutiable property which is the
subject of the call option and the
put option is taken to be property
which is transferred by that
9
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
s. 7 Part 2 - Duties Act 2001 Amended
agreement for sale of dutiable
property; and
(c) the person who has the right to
acquire the dutiable property
under that put and call option is
taken to be the purchaser or
transferee of the dutiable property
under that agreement for sale of
dutiable property.
92. When does liability for duty arise?
The liability for duty under this Act in
relation to the making of a put and call
option arises on the day on which the
option is made.
Division 2 - Assignment of rights under put and call option
93. Duty chargeable on assignment of rights
under put and call option
If a right to acquire dutiable property
under a put and call option is assigned to
another person, that assignment is taken
to be a transfer of dutiable property
referred to in section 6(1)(a) and,
accordingly -
(a) duty is chargeable on the
assignment under Chapter 2; and
(b) the dutiable property which is the
subject of the call option and the
10
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
Part 2 - Duties Act 2001 Amended s. 7
put option is taken to be the
dutiable property so transferred;
and
(c) the person to whom is assigned
the right to acquire the dutiable
property under that put and call
option is taken to be the
purchaser or transferee of the
dutiable property so transferred;
and
(d) the transfer of dutiable property is
taken to occur when the right is
assigned.
94. When does liability for duty arise?
The liability for duty under this Act in
relation to a call option assignment arises
on the day on which the right that is the
subject of that assignment is assigned.
Division 3 - Dutiable value of property subject to put and
call option or call option assignment
95. Dutiable value of property subject to put
and call option or call option assignment
Despite section 18, the dutiable value of
the dutiable property that is the subject of
a put and call option or a call option
assignment is the greater of the following
amounts:
11
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
s. 7 Part 2 - Duties Act 2001 Amended
(a) the sum of -
(i) the consideration, or the
value of the consideration,
for the making of the put
and call option or the
consideration, or the value
of the consideration, for
the assignment of the
right which is the subject
of the call option
assignment; and
(ii) the consideration, or the
value of the consideration,
that would be payable if
the call option in the put
and call option were
exercised;
(b) the unencumbered value of the
dutiable property.
Division 4 - No double duty
96. No double duty
If the Commissioner is satisfied that the
correct amount of duty has been paid -
(a) on the making of a put and call
option; and
(b) where necessary, on the
assignment of a call option under
that put and call option -
12
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
Part 2 - Duties Act 2001 Amended s. 7
no further duty is payable by a person
who exercises the call option under that
put and call option.
Division 5 - Exemptions
97. Exemptions
(1) Despite any other provision of this Part,
duty is not chargeable in respect of the
making of a put and call option or a call
option assignment if the Commissioner is
satisfied that -
(a) the put and call option was made
for the sole purpose of obtaining
finance; or
(b) the put and call option was
assigned to a body established
solely for the purpose of raising
funds in relation to an investment
scheme promoted by the person
who assigned the call option; or
(c) the put and call option forms part
of a scheme of call options and
put options granted by the
proprietors of a business that -
(i) were granted for the sole
purpose of facilitating the
continuation of the
business by one or more
of the proprietors; and
13
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
s. 7 Part 2 - Duties Act 2001 Amended
(ii) are exercisable only on
the occurrence of an event
specified in the call
options or put options that
would cause a proprietor
referred to in
subparagraph (i) to seek
to acquire the interest in
the business of one or
more of the other
proprietors.
(2) This section does not affect any duty
payable under Chapter 2 by the
transferee on a transfer of an option to
purchase land in Tasmania.
(3) In this section -
"proprietor" means -
(a) in the case of a business carried
on by a partnership, a partner in
that partnership; or
(b) in the case of a business carried
on by a company within the
meaning of the Corporations Act,
a shareholder in the company; or
(c) in the case of a business carried
on by a unit trust scheme, a
holder of a unit in that scheme; or
(d) in any other case, a person the
Commissioner determines to be a
proprietor of the business.
14
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
Part 2 - Duties Act 2001 Amended s. 8
8. Section 192 amended (Imposition of duty)
Section 192 of the Principal Act is amended as
follows:
(a) by omitting from paragraph (b) "Act."
and substituting "Act; or";
(b) by inserting the following paragraph after
paragraph (b):
(c) a notification under section 216
of a change of purpose from that
specified in section 214(1).
9. Section 196A inserted
After section 196 of the Principal Act, the
following section is inserted in Part 1:
196A. Effect of failure to pay duty
A failure to pay duty when it becomes
payable under section 196 is a tax default
for the purposes of the Taxation
Administration Act 1997.
10. Section 204 amended (Exemptions for motor
dealers)
Section 204 of the Principal Act is amended by
inserting "and used solely" after "acquired".
15
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
s. 11 Part 2 - Duties Act 2001 Amended
11. Section 207 amended (Form of exemption
certificate)
Section 207 of the Principal Act is amended as
follows:
(a) by omitting from paragraph (f)
"certificate." and substituting "certificate;
and";
(b) by inserting the following paragraph after
paragraph (f):
(g) include a unique identifying
number.
12. Section 214 substituted
Section 214 of the Principal Act is repealed and
the following section is substituted:
214. Applicable exemptions
(1) An exemption certificate may only be
used to obtain exemption from payment
of duty in respect of the registration or
transfer of a specified motor vehicle if -
(a) in the case of a new motor
vehicle, it is acquired and used
solely for the purpose of
demonstration to prospective
purchasers; or
(b) in the case of a used motor
vehicle, it is acquired and used
16
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
Part 2 - Duties Act 2001 Amended s. 12
solely for resale in the ordinary
course of business and for no
other intermediate purpose; or
(c) in the case of a holder who is a
wholesaler, the motor vehicle is
acquired and used solely for sale
to other holders of exemption
certificates or motor dealers in
other States -
and if the holder of the exemption
certificate records the unique identifying
number of the exemption certificate on
the application to register the motor
vehicle.
(2) If a motor dealer acquires a motor
vehicle for a purpose mentioned in
subsection (1) and then loans the motor
vehicle to a charity that uses it for
charitable purposes, that loan does not
disqualify the motor dealer from using
the exemption certificate as specified in
that subsection so as to receive under
section 204 an exemption from payment
of duty under this Chapter.
(3) In subsection (2) -
"charitable purpose" means any
purpose that in the opinion of the
Commissioner is charitable;
"charity" means an institution that is
a religious, scientific, charitable
or public educational institution
17
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
s. 13 Part 2 - Duties Act 2001 Amended
exempted by section 23 of the
Income Tax Assessment Act 1936
of the Commonwealth from the
payment of income tax under that
Act.
13. Section 216 amended (Change of purpose)
Section 216(1) of the Principal Act is amended
by omitting "a statement under section 214(2)
for which a motor vehicle was acquired" and
substituting "section 214(1) for which a motor
vehicle was acquired and used".
14. Section 217 amended (Duty payable in certain
circumstances)
Section 217(2)(a) of the Principal Act is
amended by omitting "private purposes" and
substituting "any purpose other than a purpose
referred to in section 214(1)".
15. Section 248 amended (Assessment where
consideration inadequate)
Section 248 of the Principal Act is amended as
follows:
(a) by inserting in subsection (1) "or (2A)"
after "subsection (2)";
18
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
Part 2 - Duties Act 2001 Amended s. 15
(b) by omitting from subsection (2) "The"
and substituting "If the relevant real
property is not vacant land, the";
(c) by omitting from subsection (2)
"agreement, transfer, assignment or other
instrument or dealing" and substituting
"dutiable transaction";
(d) by inserting the following subsection
after subsection (2):
(2A) If the relevant real property is
vacant land, the unencumbered
value of the relevant real property
is the value calculated by
multiplying the capital value of
the real property as determined
under the Valuation of Land Act
2001 by the adjustment factor
determined by the Valuer-
General under section 50A of the
Valuation of Land Act 2001 and
applicable as at the date of the
dutiable transaction.
(e) by omitting from subsection (3) "on
which the agreement, transfer,
assignment or other instrument was
made" and substituting "of the dutiable
transaction or relevant acquisition, for
the purposes of Division 3 of Part 2 of
Chapter 3,";
(f) by inserting in subsection (3)(a) "or
(2A)" after "subsection (2)";
19
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
s. 15 Part 2 - Duties Act 2001 Amended
(g) by inserting the following subsections
after subsection (4):
(5) A person who is liable to pay
duty in respect of any instrument
referred to in this section may
object to the unencumbered value
of the relevant real property as
determined under subsection (2)
or (2A) in accordance with Part
10 of the Taxation Administration
Act 1997 by providing the
Commissioner with a declaration
by a competent valuer as to the
unencumbered value of the real
property.
(6) For the purposes of this section,
on receipt of an objection the
Commissioner may determine the
objection by -
(a) charging duty in
accordance with the value
of the real property as
declared in the declaration
of a valuer provided under
subsection (5); or
(b) if not satisfied with the
value of the real property
so declared, having the
property valued and
charging duty on the basis
of that valuation.
20
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
Part 2 - Duties Act 2001 Amended s. 15
(7) The Commissioner may recover
the cost of a valuation obtained
under subsection (6)(b) from the
transferee.
21
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
s. 16 Part 3 - Duties Act 2001 Further Amended
PART 3 - DUTIES ACT 2001 FURTHER AMENDED
16. Principal Act
In this Part, the Duties Act 2001* is referred to
as the Principal Act.
17. Section 13 amended (Necessity for written
instrument or written statement)
Section 13(3) of the Principal Act is amended by
omitting "If" and substituting "Subject to a
special arrangement approved under Part 6 of the
Taxation Administration Act 1997, if".
18. Section 14 amended (Lodging written instrument or
written statement with Commissioner)
Section 14 of the Principal Act is amended by
omitting "A" and substituting "Subject to a
special arrangement approved under Part 6 of the
Taxation Administration Act 1997, a".
19. Section 22 amended (Aggregation of dutiable
transactions)
Section 22(6) of the Principal Act is amended by
omitting "A" and substituting "Subject to a
*No. 15 of 2001
22
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
Part 3 - Duties Act 2001 Further Amended s. 20
special arrangement approved under Part 6 of the
Taxation Administration Act 1997, a".
20. Section 231 amended (Stamping of instruments)
Section 231 of the Principal Act is amended as
follows:
(a) by omitting from subsection (1) "The"
and substituting "Subject to
subsection (3), the";
(b) by inserting the following subsections
after subsection (2):
(3) If an instrument is lodged with
the Commissioner for stamping
and the person who lodged it is
authorised to deal with that
instrument in accordance with the
conditions of an approval given
under Part 6 of the Taxation
Administration Act 1997, the
Commissioner may -
(a) assess the duty payable in
respect of the instrument
and stamp it if the duty,
and any interest or penalty
tax, under Part 5 of the
Taxation Administration
Act 1997, payable in
respect of the instrument
has been paid in full; or
23
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
s. 20 Part 3 - Duties Act 2001 Further Amended
(b) return the instrument to
the person who lodged it.
(4) If the Commissioner makes an
assessment of duty and stamps an
instrument under
subsection (3)(a), the
Commissioner in his or her
discretion may charge an
administrative fee under section
118A of the Taxation
Administration Act 1997.
24
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
Part 4 - Land Tax Act 2000 Amended s. 21
PART 4 - LAND TAX ACT 2000 AMENDED
21. Principal Act
In this Part, the Land Tax Act 2000* is referred
to as the Principal Act.
22. Section 6 amended (Principal residence land)
Section 6(4) of the Principal Act is amended as
follows:
(a) by omitting from paragraph (c) "land."
and substituting "land; and";
(b) by inserting the following paragraph after
paragraph (c):
(d) the Commissioner is satisfied that
the person, by reason of his or her
ownership of 50% or more shares
in another company, does not
have another principal residence
situated on other land which -
(i) is beneficially owned by
that other company; and
(ii) has been determined
under this subsection to
be principal residence
land.
*No. 74 of 2000
25
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
s. 23 Part 4 - Land Tax Act 2000 Amended
23. Section 19 amended (Other exempt land)
Section 19 of the Principal Act is amended by
omitting paragraph (d) and substituting the
following paragraph:
(d) land -
(i) that is subject to a conservation
covenant under Part 5 of the
Nature Conservation Act 2002 or
under a prescribed instrument; or
(ii) in respect of which a
conservation covenant has been
entered into under Part 5 of the
Nature Conservation Act 2002, or
under a prescribed instrument,
where the conservation covenant
has not been registered under the
Land Titles Act 1980;
24. Section 24 amended (Aggregate land value)
Section 24 of the Principal Act is amended as
follows:
(a) by inserting in subsection (1) "assessed"
after "aggregate";
(b) by inserting in subsection (2) "assessed"
after "aggregate".
26
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
Part 4 - Land Tax Act 2000 Amended s. 25
25. Section 26 amended (Apportioned assessed land
value for principal residence land)
Section 26(2) of the Principal Act is amended as
follows:
(a) by omitting from paragraph (a) "other
purposes," and substituting `principal
residence purposes and other purposes
but no part of the principal residence is
used in common for both principal
residence purposes and other purposes
(in this subsection called the "common
floor area"),';
(b) by omitting paragraph (b) and
substituting the following paragraphs:
(b) if the principal residence is used
for principal residence purposes
and other purposes and part of the
principal residence is common
floor area, by multiplying the
assessed land value by the
proportion of the principal
residence used for principal
residence purposes calculated in
accordance with the following
formula:
where -
27
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
s. 26 Part 4 - Land Tax Act 2000 Amended
"FAP" is the floor area
apportioned as used for
principal residence
purposes;
"FP" is the floor area used for
principal residence
purposes;
"FNP" is the floor area used
for purposes other than
principal residence
purposes;
"C" is the common floor area;
or
(c) if principal residence land is used
for principal residence purposes
and other purposes, by
multiplying the assessed land
value by the proportion of land
used for principal residence
purposes.
26. Section 38 amended (Special rate of land tax)
Section 38 of the Principal Act is amended as
follows:
(a) by omitting from subsection (1)
"Minister," and substituting
"Commissioner,";
28
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
Part 4 - Land Tax Act 2000 Amended s. 27
(b) by omitting from subsection (2)(b)
"Minister" and substituting
"Commissioner";
(c) by omitting from subsection (3)(a)
"Minister" and substituting
"Commissioner";
(d) by omitting from subsection (5)
"Minister" and substituting
"Commissioner";
(e) by omitting from subsection (6)
"Minister" and substituting
"Commissioner".
27. Section 39 amended (Recovery of unpaid land tax)
Section 39 of the Principal Act is amended by
omitting subsections (3) and (4) and substituting
the following subsections:
(3) The owner of land, on the sale or transfer
of that land, if there is no land value
assessed in respect of that land, must
pay -
(a) if the owner owns only that land,
the total of the following
amounts:
(i) any amount of land tax
owing and any penalty tax
and interest payable;
29
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
s. 27 Part 4 - Land Tax Act 2000 Amended
(ii) an amount equivalent to
the amount of land tax
that would be payable had
that land had an assessed
land value equal to the
determined value of that
land; or
(b) if the owner owns additional land,
the lesser of the following
amounts:
(i) the total of the amount of
land tax owing, the
amount of any penalty tax
and interest payable and
an amount equivalent to
the amount of land tax
that would be payable had
that land had an assessed
land value equal to the
determined value of that
land;
(ii) the amount calculated by
multiplying the total
amount of land tax owing,
and any penalty tax and
interest payable, by the
ratio of the determined
value of the land sold or
transferred to the
aggregate of the assessed
land value and determined
value of all land owned as
at 1 July preceding the
30
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
Part 4 - Land Tax Act 2000 Amended s. 27
sale or transfer after
subtracting the assessed
land value or determined
value of any other land
sold or transferred after
that date.
Penalty: Fine not exceeding 10 penalty
units.
(4) For the purpose of calculating any
amount under subsection (2)(c)(ii) or
(3)(b)(ii), any land in respect of which no
land tax is payable is to be excluded.
(5) For the purposes of subsection (3), the
determined value of land is -
(a) if the Commissioner is satisfied
that the contract price of the land
is a true reflection of its value, the
contract price of the land; or
(b) if the Commissioner is not
satisfied that the contract price of
the land is a true reflection of its
value, the value of the land
determined by a competent valuer
and accepted by the
Commissioner as a true reflection
of the value of the land.
(6) In subsection (5) -
"contract price" means the purchase
price of the land as -
31
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
s. 27 Part 4 - Land Tax Act 2000 Amended
(a) specified in a written agreement
for the sale or transfer of the land;
or
(b) if there is no such written
agreement, the purchase price for
the sale or transfer of the land as
agreed between the vendor and
purchaser.
(7) For the purpose of determining the
determined value of land, the
Commissioner -
(a) may require the owner of the land
to provide a declaration by a
competent valuer as to the value
of the land; and
(b) if not satisfied that the value of
the land as stated in a declaration
provided under paragraph (a) is a
true reflection of the value of the
land, may have the land valued
by another competent valuer.
(8) The Commissioner may recover the cost
of obtaining a valuation of land under
subsection (7)(b) from the owner of the
land.
32
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
Part 4 - Land Tax Act 2000 Amended s. 28
28. Section 42 amended (Searches)
Section 42(2)(c) of the Principal Act is amended
by omitting "section 39(2);" and substituting
"section 39(2) or (3);".
33
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
s. 29 Part 5 - Pay-roll Tax Act 1971 Amended
PART 5 - PAY-ROLL TAX ACT 1971 AMENDED
29. Principal Act
In this Part, the Pay-roll Tax Act 1971* is
referred to as the Principal Act.
30. Section 2 amended (Interpretation)
Section 2(1) of the Principal Act is amended as
follows:
(a) by omitting "employer," from the
definition of "Australian wages" and
substituting "employer under this Act or
a corresponding Act,";
(b) by omitting "member," from the
definition of "Australian wages" and
substituting "member under this Act or a
corresponding Act,";
(c) by inserting the following definition after
the definition of "corporation":
"corresponding Act" means an Act in
force in another State, a Territory
or the Commonwealth that relates
to the imposition upon employers
of a tax on wages paid or payable
by them and the assessment and
collection of that tax;
*No. 43 of 1971
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Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
Part 5 - Pay-roll Tax Act 1971 Amended s. 31
31. Section 11A amended (Annual adjustments)
Section 11A of the Principal Act is amended as
follows:
(a) by omitting from subsection (3B) "is -"
and substituting "is as follows:";
(b) by omitting from subsection (3B)(a) "or"
second occurring;
(c) by omitting from subsection (3B)(b)
"year" first occurring and substituting
"year, being a financial year in which
February has 28 days,";
(d) by inserting the following paragraph after
paragraph (b) in subsection (3B):
(c) if adjusted Australian wages for
the year, being a financial year in
which February has 29 days, are
more than $1 010 000, an amount
ascertained by applying the rate
of 6.10% to the difference
between the total of the taxable
wages paid or payable by the
employer during that financial
year and an amount calculated in
accordance with the following
formula:
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Act No. of
s. 31 Part 5 - Pay-roll Tax Act 1971 Amended
(e) by omitting subsection (5) and
substituting the following subsection:
(5) In this section -
"adjusted Australian wages"
means -
(a) in respect of a financial
year commencing on or
after 1 July 1992 in which
February has 28 days, the
Australian wages paid or
payable by an employer
during that financial year,
multiplied by -
(b) in respect of a financial
year commencing on or
after 1 July 1992 in which
February has 29 days, the
Australian wages paid or
payable by an employer
during that financial year,
multiplied by -
where "D" is the number of days
on which the employer was an
36
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
Part 5 - Pay-roll Tax Act 1971 Amended s. 32
employer during the financial
year.
32. Section 11J amended (Group members jointly and
severally liable for payment)
Section 11J of the Principal Act is amended as
follows:
(a) by inserting "under this Act in respect of
any period, or any amount of interest or
penalty tax relating to such failure," after
"required to pay";
(b) by omitting "who paid or was liable to
pay taxable wages during the financial
year in which the pay-roll tax liability
has incurred";
(c) by inserting "(including such interest
and penalty tax)" after "that amount".
37
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
s. 33 Part 6 - Taxation Administration Act 1997 Amended
PART 6 - TAXATION ADMINISTRATION ACT 1997
AMENDED
33. Principal Act
In this Part, the Taxation Administration Act
1997* is referred to as the Principal Act.
34. Part 11, Division 3A inserted
After section 113 of the Principal Act, the
following Division is inserted in Part 11:
Division 3A - Tax avoidance
113A. Purpose and operation of Division 3A
(1) The purpose of this Division is to deter
artificial, blatant or contrived schemes to
reduce liability to pay tax.
(2) No provision of this Act or a taxation law
limits the operation of this Division
unless that provision expressly provides
otherwise.
113B. Application of Division 3A
(1) This Division applies if -
*No. 74 of 1997
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Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
Part 6 - Taxation Administration Act 1997 Amended s. 34
(a) a person has obtained, or would
apart from this Division obtain, a
tax benefit -
(i) from a scheme which was
entered into after the
commencement of this
Division; or
(ii) from a scheme the
carrying out of which was
started after the
commencement of this
Division; and
(b) the tax benefit is not, or would
not be, attributable to an
exemption or concession under a
taxation law; and
(c) taking into account the matters
set out in section 113C, it is
reasonable to conclude that a
person, whether alone or with
other persons, who entered into or
carried out the scheme, or part of
the scheme, did so for the sole or
dominant purpose of enabling
that person to obtain such a, or
another, tax benefit from the
scheme.
(2) For the purposes of subsection (1), it
does not matter -
(a) whether the scheme, or any part
of the scheme, is entered into or
39
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
s. 34 Part 6 - Taxation Administration Act 1997 Amended
carried out in Tasmania or
elsewhere; or
(b) whether or not the tax benefit that
the person obtained, or would
have obtained, is the same kind of
tax benefit referred to in
subsection (1)(a).
113C. Matters to be considered when determining
purpose of scheme
For the purposes of section 113B(1)(c),
the following matters are to be taken into
account in determining whether it is
reasonable to conclude that the sole or
dominant purpose of a person entering
into or carrying out a scheme of a kind
referred to in section 113B(1), or a part
of such a scheme, is to enable that person
to obtain a tax benefit from the scheme:
(a) the manner in which the scheme,
or part of the scheme, was
entered into or carried out by the
person;
(b) the form and substance of the
scheme or part of the scheme,
including -
(i) the legal rights and
obligations of the person
under the scheme or part;
and
40
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
Part 6 - Taxation Administration Act 1997 Amended s. 34
(ii) the economic and
commercial substance of
the scheme or part;
(c) the time when the person entered
into or carried out the scheme or
part of the scheme and the length
of the period during which the
person was involved in carrying
out the scheme or part of the
scheme;
(d) the purpose of -
(i) this Act; and
(ii) any taxation law that is
relevant to the scheme or
part of the scheme; and
(iii) a provision of this Act or
such a taxation law -
whether or not that purpose is
expressly stated in this Act, the
taxation law or the provision;
(e) the effect that this Act, other than
this Division, or a taxation law
would have in relation to the
scheme or part of the scheme;
(f) any change in the person's
financial position that has
resulted, will result or may
reasonably be expected to result
from the person entering into or
41
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
s. 34 Part 6 - Taxation Administration Act 1997 Amended
carrying out the scheme or part of
the scheme;
(g) any change in the financial
position of any other person who
is or has been connected with the
person, through business or
family or in any other manner,
that has resulted, will result or
may reasonably be expected to
result from the person's
connection with the scheme or
part of the scheme;
(h) any other consequence for the
person, or another person referred
to in paragraph (g), that results,
will result or may reasonably be
expected to result from entering
into or carrying out the scheme or
part of the scheme or from the
person's or other person's
connection with the scheme or
part of the scheme;
(i) the nature of the connection
between another person referred
to in paragraph (g) and the
person;
(j) the circumstances surrounding
the scheme or part of the scheme;
(k) the circumstances surrounding
the entry of the person into the
scheme or part of the scheme or
42
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
Part 6 - Taxation Administration Act 1997 Amended s. 34
the carrying out by the person of
the scheme or part of the scheme.
113D. When tax benefit obtained
A person obtains a tax benefit if an
amount of tax payable by the person
under a taxation law is, or could
reasonably be expected to be, less than it
would have been if the person had not
entered into or carried out a scheme of a
kind referred to in section 113B(1) or
part of such a scheme.
113E. Amount of tax benefit
The amount of the tax benefit obtained
by a person who entered into or carried
out a scheme of a kind referred to in
section 113B(1), or part of such a
scheme, is the difference between the
amount of tax payable and the amount of
tax that would have been payable had
that person not entered into or carried out
that scheme or that part of such a
scheme.
113F. Assessments and reassessments if tax benefit
obtained from scheme
(1) If a person has obtained, or would but for
this Division obtain, a tax benefit from
43
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
s. 34 Part 6 - Taxation Administration Act 1997 Amended
entering into or carrying out a scheme of
a kind referred to in section 113B(1), or
part of such a scheme, the Commissioner
may -
(a) in making an assessment of tax
liability under section 18, include
as part of the person's tax liability
the amount of the tax benefit
obtained or that would be
obtained; or
(b) reassess the person's tax liability
under section 19 so that the
person's tax liability includes the
amount of the tax benefit
obtained.
(2) If the Commissioner takes action under
subsection (1), the Commissioner must
notify the person, in writing, that he or
she has done so and his or her reasons for
doing so.
44
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
Part 7 - Taxation Administration Act 1997 Further Amended s. 35
PART 7 - TAXATION ADMINISTRATION ACT 1997
FURTHER AMENDED
35. Principal Act
In this Part, the Taxation Administration Act
1997* is referred to as the Principal Act.
36. Section 50 amended (Application for approval)
Section 50 of the Principal Act is amended by
inserting after subsection (2) the following
subsections:
(3) If the Commissioner has not received an
application for an approval under this
Division from -
(a) a specified taxpayer or a taxpayer
of a specified class referred to in
section 49(1); or
(b) a specified agent on behalf of a
specified taxpayer or a taxpayer
of a specified class referred to in
section 49(1) -
the Commissioner, by written notice
provided to that taxpayer or agent and for
the purpose of exercising his or her
initiative under section 49(3), may
require that taxpayer or agent to make
*No. 74 of 1997
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Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
s. 37 Part 7 - Taxation Administration Act 1997 Further Amended
that application, and to provide any other
information specified in the notice, to the
Commissioner.
(4) A taxpayer or agent must comply with a
notice provided under subsection (3)
within the period specified in that notice
or within such further period as the
Commissioner allows.
Penalty: In -
(a) the case of a body
corporate, a fine not
exceeding 500 penalty
units; or
(b) any other case, a fine not
exceeding 100 penalty
units.
37. Section 52 amended (Effect of approval)
Section 52 of the Principal Act is amended by
omitting subsection (2).
38. Section 118A amended (Administrative fee)
Section 118A of the Principal Act is amended by
omitting subsection (1) and substituting the
following subsection:
(1) The Commissioner may charge a
prescribed fee in respect of the lodging of
46
Taxation Legislation (Miscellaneous Amendments) Act 2006
Act No. of
Part 7 - Taxation Administration Act 1997 Further Amended s. 38
an instrument for assessment or the
lodging of a return.
Government Printer, Tasmania 47