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LAND TAX ACT 2005 - SECT 46IA

Land tax surcharge for absentee trusts

S. 46IA(1) amended by No. 40/2016 s. 21, substituted by No. 67/2017 s. 16(1), amended by Nos 17/2019 s. 37(1), 18/2023 s. 27(1).

    (1)     A person who is the owner of land as a trustee of an absentee trust that is a fixed trust is liable for land tax determined using the formula—

where—

    A     is the amount of assessed land tax that is payable;

    B     is the amount determined by applying the applicable rate set out in Part 3 of Schedule 1;

    C     is—

        (a)     if the absentee trust is not in a chain of trusts or is an ultimate trust, the value of all land subject to the trust that would be taken under section 46IB to be owned by an absentee beneficiary if a notice were in force under section 46B in respect of the beneficial interests of that absentee beneficiary in that land; or

        (b)     if the absentee trust is in a chain of trusts and is not an ultimate trust, an amount determined by the formula—

05-88a07910.jpg

where—

    D     is the absentee proportion of interests in all land subject to the trust;

    E     is the taxable value of all land subject to the trust.

S. 46IA(1A) amended by Nos 17/2019 s. 37(2), 18/2023 s. 27(2).

    (1A)     A person who is the owner of land as a trustee of an absentee trust that is a unit trust scheme is liable for land tax determined using the formula—

where—

    A     is the amount of assessed land tax that is payable;

    B     is the amount determined by applying the applicable rate set out in Part 3 of Schedule 1;

    C     is—

        (a)     if the unit trust scheme is not in a chain of trusts or is an ultimate trust, the value of all land subject to the scheme that would be taken under section 46IC to be owned by an absentee beneficiary if a notice were in force under section 46C in respect of the unitholdings in the scheme held by that absentee beneficiary; or

        (b)     if the unit trust scheme is in a chain of trusts and is not an ultimate trust, an amount determined by the formula—

05-88a07911.jpg

where—

    D     is the absentee proportion of interests in all land subject to the scheme;

    E     is the taxable value of all land subject to the scheme.

S. 46IA(1B) inserted by No. 67/2017 s. 16(1).

    (1B)     A person who is the owner of land as trustee of an absentee trust that is a discretionary trust is liable for land tax determined at the applicable rate set out in Part 5 of Schedule 1.

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

S. 46IA(2)(a) amended by No. 67/2017 s. 16(2)(a).

        (a)     the variable "B" in the formula in subsections (1) and (1A); and

S. 46IA(2)(b) substituted by No. 67/2017 s. 16(2)(b).

        (b)     subsection (1B).

S. 46IA(2A) inserted by No. 38/2023 s. 40.

    (2A)     There is to be added to the land tax payable by the trustee under subsection (1A) or (1B) on the whole of the land subject to the absentee 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 if—

        (a)     in the case of an absentee trust that is a unit trust scheme, the scheme has a nomination in force under section 46H; or

        (b)     in the case of an absentee trust that is a discretionary trust, the trust

              (i)     has a nomination in force under section 46H; and

              (ii)     does not have a nomination in force under section 46F.

    (3)     This section does not apply to—

        (a)     land subject to an excluded trust; or

        (b)     land subject to an administration trust; or

        (c)     child maintenance land.

    (4)     This section is subject to sections 46IB, 46IC and  46IE.

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



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