Stamp Duty Document Guide

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Transcription:

Introduction applies to: a conveyance on sale; or a conveyance operating as a voluntary disposition inter vivos; or any document chargeable with duty as if it were a conveyance (including a Statement under Section 71E). The operating provision is (3) which comes into force when two or more documents: arise from a single contract of sale; or together form, or arise from, substantially one transaction or one series of transactions. can apply where the two or more documents have: the same transferor(s) and the same transferee(s); or the same transferor(s) and different transferee(s). does not apply where two or more documents have: different transferor(s) and the same transferee(s); or different transferor(s) and the same transferee(s) and different transferee(s); where the Commissioner is satisfied that the land is being conveyed by persons acting separately and independently from each other. Each of the above examples can apply where the transferor(s) or transferee(s) acts alone or with different persons. Where applies, the documents are charged with ad valorem conveyance stamp duty (or ad valorem voluntary conveyance stamp duty) calculated on the sum of the market values (or consideration paid) of the properties conveyed by these instruments. Once the total duty is calculated, it is apportioned among the instruments generally in the ratio of market values or consideration paid. When stamping on RevenueSA Online the field will need to be highlighted and the stamp duty will be apportioned for you. When using the Periodic Return Arrangement, you will need to apportion the stamp duty manually.

(4) states, in relation to this aggregation of transactions within 12 months that: Where by instruments that have been, or appear to have been, executed within 12 months of each other a person conveys property or interests in property to the same person (whether that person takes alone or with the same or different persons), it will be presumed, unless the Commissioner is satisfied to the contrary, that the instruments form one transaction or one series of transactions. It is not necessary that the conveying documents be executed on the same day. (4) states that documents that have been executed within 12 months of each other will be presumed to form one or a series of transactions given certain conditions. Those conditions are where a person conveys property or an interest in property through different documents, to the same person or the same person and other different persons. The Supreme Court has considered two cases regarding Section 66ab (now ). These are: Jeffrey v Commissioner of Stamps (1980) 23 SASR 398. Old Reynella Village Pty Ltd v Commissioner of Stamps (1989) 89 ATC 4916. These cases assist with the interpretation and application of. refers to all types of property except: a conveyance that relates to property that is being conveyed in separate parcels to different persons by separate conveyances where the Commissioner is satisfied that no arrangement or understanding exists between the persons under which the parcels of property conveyed are to be used otherwise than separately and independently from each other; or a document excluded from the operation of this section by the regulations. Some common examples of types of property subject to are: land; and units in a land owning unit trust (not marketable securities).

Regulation 11 excludes the following types of conveyances from the operation of : a document which is 1 of a series of separate conveyances under which rights or interests in a hotel, motel, resort or managed apartment complex are conveyed in separate parcels to different persons, each of whom is or becomes a member of the same managed investment scheme; and the Commissioner is satisfied that, apart from any arrangement or understanding entered into for the purpose of the managed investment scheme no arrangement or understanding exists between the members under which the parcels or property conveyed are to be used otherwise than separately and independently from each other. All documents not subject to pursuant to Regulation 11 can be stamped under the appropriate document type. If does apply and the documents in the series are not stamped at the same time under the same bundle the documents cannot be self-stamped on RevenueSA Online or the Periodic Return Arrangement. These documents must be submitted for the Opinion of the Commissioner, together with a detailed description of the transaction including details of the other documents in the series. If you agree that Act applies, the documents can be self-stamped providing all documents in the series are being stamped under the same bundle. When stamping on RevenueSA Online the field will need to be highlighted and the stamp duty will be apportioned for you. When using the Periodic Return Arrangement, you will need to apportion the stamp duty manually. If you consider that does not apply the documents cannot be selfstamped. These documents must be submitted for the Opinion of the Commissioner, together with a detailed description as to why you consider that should not apply.

Where (4) applies, this may be rebutted and accepted if the Commissioner can be satisfied that the following circumstances apply: each contract was negotiated separately and independently of the other contract (s), e.g. they are not conditional contracts, not dependent on each other; and each property will be used separately from the other properties, e.g. separate development on each property, no unity of purpose. Following are some examples of where can apply. If you have a transaction which appears similar to any one of these examples but you consider that should not apply the documents cannot be self-stamped. These documents must be submitted for the Opinion of the Commissioner together with a detailed description as to why you consider that should not apply. It can be seen from these examples, that no one factor by itself may bring a number of conveying documents within the ambit of. Rather it is the combination of several factors based on an examination of the particular facts and circumstances of a series of transactions to determine whether the various conveying documents are brought within the provisions of. EXAMPLE: Same Transferors to Same Transferees Contract 1 - X agrees to convey land to B. Contract 2 X agrees to convey land to B. same transferors; same transferees; adjoining allotments; two contracts; two conveying documents; contract two subject to completion of contract one; and bona fide arm s length transaction between unrelated parties. applies because this is considered to be one series of transactions.

However, if the contracts are not subject to each other, (4) can be rebutted if the Commissioner can be satisfied that the following circumstances apply: each contract was negotiated separately and independently of the other contract, e.g. they are not conditional contracts, not dependent on each other; and each property will be used separately from the other property, e.g. separate development on each property, no unity of purpose. EXAMPLE: Same Transferors to Same Transferees (as Trustee for different Trusts) Contract 1 - X agrees to convey land to B as Trustee for M. Contract 2 X agrees to convey land to B as Trustee for N. Contract 3 X agrees to convey land to B as Trustee for O. same transferors; same transferees (as trustee for three different trusts); three contracts; and three conveying documents. applies because this is considered to be one series of transactions. For stamp duty purposes the beneficial owner of the property is irrelevant and the beneficiary under each trust is not the subject of the conveyance, rather it is the trustee. However, if the contracts are not subject to each other, (4) can be rebutted if the Commissioner can be satisfied that the following circumstances apply: each contract was negotiated separately and independently of the other contract, e.g. they are not conditional contracts, not dependent on each other; and each parcel of land will be used separately from the other parcels of land, e.g. separate development on each parcel of land, no unity of purpose.

EXAMPLE: Same Transferors and Different Transferees Contract 1 - X agrees to convey land to D. Contract 2 X agrees to convey land to E. same transferors; different transferees; two contracts; two conveying documents; same settlement dates; and joint farming venture subject to identical Joint Management Agreements and other arrangements. applies as this is considered to be one series of transactions because the Joint Management Agreements create an arrangement or understanding between the parties to use the land together. EXAMPLE: Same Transferors to Common Transferees Contract 1 - X contracts to sell improved land to B, C and D. Contract 2 - X contracts to sell vacant land to D (son of B and C). same transferors; common transferees; same agent; adjoining land; two contracts both in the same form; and same settlement date. applies because this is considered to be one series of transactions.

However, if the contracts are not subject to each other, (4) can be rebutted if the Commissioner can be satisfied that the following circumstances apply: each contract was negotiated separately and independently of the other contract, e.g. they are not conditional contracts, not dependent on each other; and each parcel of land will be used separately from the parcels of land, e.g. separate development on each parcel of land, no unity of purpose. EXAMPLE: Different Transferors and Same Transferees Transfer 1 - B gifts land to XYZ Pty Ltd as Trustee for the B Family Trust. Transfer 2 C gifts land to XYZ Pty Ltd as Trustee for the B Family Trust. Transfer 3 D gifts land to XYZ Pty Ltd as Trustee for the B Family Trust. B, C and D are all members of the same family group and are all beneficiaries of the B Family Trust. different transferors; same transferees; and three conveying documents. (2)(ab) excludes this transaction from grouping as this is a series of separate conveyances of land by different persons to the same person if the Commissioner is satisfied that the land is being conveyed by persons acting separately and independently from each other.

EXAMPLE: Different Transferors to Same Transferees Contract 1 - X contracts to sell land to B. Contract 2 - Y contracts to sell land to B. different transferors (unrelated); same transferees; adjoining land; two contracts (dated three weeks apart); contract two subject to completion of subject one; and simultaneous settlement dates. (2)(ab) excludes a transaction from grouping for a series of separate conveyances of land by different persons to the same person if the Commissioner is satisfied that the land is being conveyed by persons acting separately and independently from each other. As the contracts are subject to completion of each other it is considered that the persons X and Y are not acting separately and independently from each other therefore applies. EXAMPLE: Different Transferors and Different Transferees Contract 1 - B agrees to convey farming land to C. Contract 2 D agrees to convey farming land to E. Contract 3 - F agrees to convey farming land to G C, E and G are related and intend to farm the property together and share costs, expenses and profits. different transferors; different transferees (related); three contracts;

three conveying documents; same settlement dates; and Joint Farming Partnership Agreement executed by the transferees. applies as this is considered to be one series of transactions because the Joint Farming Partnership Agreement creates an arrangement or understanding between the parties to use the farming lands together. What is the formula for apportioning the stamp duty between the instruments? The stamp duty is calculated on the aggregate of either the market value or the consideration (including GST), WHICHEVER IS THE GREATER. The stamp duty is calculated using either the ad valorem conveyance rate or the ad valorem voluntary conveyance rate of duty prescribed in the Schedule 2. For ease of discussion we will call the greater of the consideration or market value the Value. The formula for apportioning the stamp duty between the conveyances is as follows: Value of individual property Total value of all properties X Stamp Duty on total value of all properties = Stamp Duty on individual instrument Calculating the Stamp Duty pursuant to In this example, we will assume that applies and that the consideration paid represents the market value and calculate the stamp duty on each transfer. The first Transfer Land conveys land for a consideration of $120 000. The second Transfer conveys the adjoining block of land for a consideration of $360 000. The aggregated value of these properties is $480 000. Ad valorem stamp duty (calculated on the aggregated value of these properties - $480 000) is $20 330.

The stamp duty would be apportioned between the Transfers of Land as follows: Transfer 1 $120 000 $480 000 X $20 300 = $5082.5 Transfer 2 $360 000 $480 000 X $20 300 = $15 247.50