Western Australian Current Acts

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DUTIES ACT 2008 - SECT 118

118 .         Transfers to and from bare trustee

        (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.]



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