Queensland Consolidated Acts

DUTIES ACT 2001 - SECT 116

116 Exemption—particular agreements entered into before registration of company

(1) Subsection (2) applies if—

(a) a transferee enters into an agreement (the
"first agreement" ) for, or for the benefit of, a company proposed to be registered under the Corporations Act ; and

(b) the company is named in the first agreement; and

(c) the company, or a company that is reasonably identifiable with it, is registered under the Corporations Act ; and

(d) the first agreement is ended so that the company can enter into an agreement as the transferee of the dutiable property.

(2) Transfer duty is not imposed on the dutiable transaction that is the first agreement for the transfer of the dutiable property.

(3) Subsection (4) applies if—

(a) a transferee enters into an agreement for, or for the benefit of, a company proposed to be registered under the Corporations Act ; and

(b) the company is named in the agreement; and

(c) the company, or a company that is reasonably identifiable with it, is registered under the Corporations Act ; and

(d) under the Corporations Act , section 131 , the company ratifies the agreement after it is registered.

(4) Transfer duty is not imposed on the dutiable transaction that is the transfer of the dutiable property to the company if transfer duty imposed on the agreement is paid.

Note—

See also section 241A in relation to the imposition of AFAD on the agreement in particular circumstances.

(5) If, on an assessment, transfer duty has been paid on a dutiable transaction that is not liable to transfer duty because of this section, the commissioner must make a reassessment if an application is made within 6 months after the agreement is ended or ratified or the longer period the commissioner allows.

(6) The applicant must lodge the first agreement or transfer with the application.