(1) This section
applies if —
(a) a
person (the retiring partner ) ceases to be a partner in a partnership because
of the retiring partner’s retirement from the partnership or its
dissolution; and
(b) on
the retirement or dissolution, dutiable property (the transfer property ) of
the partnership is transferred or agreed to be transferred to the retiring
partner; and
(c) the
transfer property is, or is an interest in, a particular item of dutiable
property (the relevant partnership property ) held by the partnership
immediately before the retirement or dissolution.
(2) In determining the
dutiable value of the dutiable transaction that is the transfer or agreement
referred to in subsection (1)(b), the unencumbered value of the transfer
property is to be determined as follows —
(a)
first, the aggregate unencumbered value of the following is to be determined
—
(i)
the transfer property;
(ii)
if the transfer property is an interest in the relevant
partnership property — relevant retained property (if any) in relation
to the transfer property;
(b)
second, the value determined in accordance with paragraph (a) is to be reduced
by an amount calculated by applying the retiring partner’s partnership
interest in the partnership to the unencumbered value, immediately before the
retirement or dissolution, of the relevant partnership property.
(3) Property is
relevant retained property in relation to the transfer property for the
purposes of subsection (2)(a)(ii) if —
(a) the
property is also an interest in the relevant partnership property; and
(b)
immediately before the retirement or dissolution, the retiring partner was the
legal owner of the property and held it for the partnership; and
(c)
immediately after the retirement or dissolution, the retiring partner remains
the legal owner of the property but no longer holds it for the partnership.
(4) This section does
not apply to a transfer that is taken to occur under section 78A(2).
[Section 78 inserted: No. 12 of 2019 s. 29.]