(1) Nominal duty is
chargeable on a transfer (the subsequent transfer ) if —
(a)
there has been a dutiable transaction (the original transfer ) that is a
transfer of dutiable property from a person (the transferor ) to another
person who is to hold the property solely as a bare trustee for the
transferor; and
(b) any
of the following transactions (the endorsed transaction ) is duty endorsed
—
(i)
the original transfer;
(ii)
the agreement for the original transfer;
(iii)
the declaration of trust;
and
(c) the
subsequent transfer is a transfer of the dutiable property back to the
transferor or to a person to whom the transferor’s beneficial interest
in the property has been transmitted by death or bankruptcy; and
(d) the
Commissioner is satisfied that, between the original transfer and the
subsequent transfer, no person other than the transferor has held a beneficial
interest in the dutiable property (other than the trustee’s right of
indemnity).
(2) In subsection (1)
—
bare trustee —
(a)
means a trustee of a trust, other than a unit trust scheme or a discretionary
trust, if the trustee has no active duties or powers in relation to the trust
other than conveying the dutiable property to the transferor or as directed by
the transferor; and
(b)
includes a trustee appointed in substitution for a trustee or a trustee
appointed in addition to a trustee or trustees.
(3) If nominal duty is
chargeable on a subsequent transfer under subsection (1), nominal duty is also
chargeable on the endorsed transaction.
(4) The Commissioner,
on the application of the taxpayer, is to reassess the liability to duty of
the endorsed transaction in accordance with subsection (3).
(5) The limitations as
to time in the Taxation Administration Act section 17 do not apply in respect
of a reassessment under subsection (4).
[Section 118 inserted: No. 12 of 2019 s. 45.]