New South Wales Consolidated Acts

DUTIES ACT 1997 - SECT 111

111 Exemptions

(1) No duty is chargeable as a consequence of this Part on a call option assignment if the Chief Commissioner is satisfied that--

(a) the call option and put option were granted by the parties concerned for the sole purpose of obtaining finance, or

(aa) the call option is assigned to a body established solely for the purpose of raising funds in relation to an investment scheme promoted by the person who assigns the call option, or

(b) the call option and the put option form part of a scheme of call options and put options granted by proprietors of a business that--

(i) were granted for the sole purpose of facilitating the continuation of the business by one or more of the proprietors (
"the continuing proprietors" ), and

(ii) are not exercisable except on the occurrence of a specified event that would cause the continuing proprietors to seek to acquire the interest of one or more of the other proprietors of the business, or

(c) the dutiable property the subject of the call option is land and the call option is assigned by a person authorised to contract to do residential building work under the Home Building Act 1989 who--

(i) has built or is building residential premises on the land for the purposes of sale, or

(ii) has an agreement with the person to whom the call option is assigned to build residential premises on the land, or

(d) the call option is assigned by a corporation that is a member of a group of corporations to another corporation that is a member of the same group.

(2) This section does not affect the duty payable under Chapter 2 or 2A (if any) by the transferee on a transfer of an option to purchase land in New South Wales.

(2A) For the purposes of this section, corporations are members of the same
"group of corporations" if--

(a) one corporation is a wholly owned subsidiary of the other corporation (that is, the other corporation holds, otherwise than as trustee, not less than 90% of the issued share capital of the first corporation and is in a position to control not less than 50% of the maximum number of votes that might be cast at a general meeting of the first corporation), or

(b) the corporations are wholly owned subsidiaries (within the meaning of paragraph (a)) of the same corporation.

(2B) If a corporation that is a wholly owned subsidiary (within the meaning of subsection (2A) (a)) of another corporation (the
"parent corporation" ) holds shares, otherwise than as trustee, in a third corporation, then, for the purposes of determining whether the parent corporation and the third corporation are members of the same group of corporations, the shares held by the wholly owned subsidiary in the third corporation are taken also to be shares held by the parent corporation in the third corporation.

Note : The effect of subsection (2B) is that the third corporation will be considered to be a wholly owned subsidiary of the parent corporation if the shareholdings of the parent corporation in the third corporation (if any) together with the shareholdings of any wholly owned subsidiary in the third corporation are sufficient to satisfy subsection (2A) (a).

(3) In this section--

"proprietor" of a business means--

(a) in the case of a business carried on by a partnership, a partner, or

(b) in the case of a business carried on by a company, a shareholder, or

(c) in the case of a business carried on by a unit trust scheme, a unit holder, or

(d) in any other case, a person the Chief Commissioner determines to be a proprietor of the business.