Northern Territory Numbered Acts

REVENUE AND OTHER LEGISLATION AMENDMENT ACT 2010 (NO 21 OF 2010) - SECT 23

After section 56CA

insert

56CAA     Acquisition of interest by share transfer

    (1)     This section applies to an acquisition of an interest in a corporation that is, or is to be, evidenced by a transfer of shares.

    (2)     For this Act, the acquisition is taken to occur, on the earliest of the following dates:

    (a)     the date on which the documents evidencing the transfer of, or the title to, the shares are delivered to the person acquiring the shares or someone else on that person's behalf;

    (b)     the date on which all or any part of the consideration for the shares is given to the person from whom the shares are acquired or someone else on that person's behalf;

    (c)     the date on which the name of the person acquiring the shares is registered on the register of the members of the corporation.

    (3)     Subsection (4) applies if:

    (a)     the acquisition is taken to occur on the date mentioned in subsection (2)(b); and

    (b)     none of the events mentioned in subsection (2)(a) and (c) has occurred; and

    (c)     the transaction for the transfer of the shares is rescinded, annulled or otherwise terminated.

    (4)     The Commissioner may:

    (a)     determine the acquisition did not occur; and

    (b)     assess or reassess a person's liability to pay duty accordingly.

    (5)     If an acquisition of an interest in relation to shares in a corporation is taken to have occurred on a day under subsection (2):

    (a)     the person acquiring the interest is taken to have become a shareholder of the corporation in relation to those shares on that day; and

    (b)     the person from whom the interest is acquired is taken to have ceased to be a shareholder of the corporation in relation to those shares on that day.

    (6)     If the Commissioner subsequently determines under subsection (4) that the acquisition did not occur:

    (a)     the person mentioned in subsection (5)(a) is taken never to have been the shareholder of the corporation in relation to those shares as provided under that subsection; and

    (b)     the person mentioned in subsection (5)(b) is taken never to have ceased to be a shareholder of the corporation in relation to those shares as provided under that subsection.