South Australian Current Acts

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13J—Grouping of related corporations

        (1)         Related corporations that own land are to be jointly assessed for land tax on the land as if it were owned by a single corporation.

        (2)         Related corporations are jointly and severally liable for the land tax.

        (3)         Section 42 of the Taxation Administration Act 1996 applies to the liability under this section and, accordingly, the Commissioner may issue notices of assessment for the land tax

            (a)         to the related corporations jointly; or

            (b)         to the related corporations separately; or

            (c)         to any 2 or more of the related corporations jointly and the remainder separately.

        (4)         If 2 or more corporations are issued a notice of assessment jointly under subsection (3), those corporations will, for the purposes of that notice of assessment, be deemed to be a single corporation.

        (5)         A corporation that is a related corporation of another corporation may apply to the Commissioner to be exempted from the application of this Division and to instead be treated as a single corporation for the purposes of assessment of land tax in relation to land held by the corporation.

        (6)         The Commissioner may only grant an application under subsection (5) if the Commissioner is satisfied—

            (a)         that the land is being held for the purpose of being developed as a residential development of more than 10 allotments or lots; and

            (b)         as to any other matters prescribed by the regulations.

        (7)         Subject to subsection (9), an exemption granted on an application under subsection (5) will be for an initial term specified by the Commissioner in the instrument of exemption (which will be based on the expected development period but may not exceed a period of 5 years).

        (8)         The initial term of an exemption may, on application to the Commissioner, be extended for a further period specified by the Commissioner if the Commissioner is satisfied that the development of the land is occurring over a reasonable period in the circumstances.

        (9)         An exemption will cease if the Commissioner determines that—

            (a)         the development has been substantially completed; or

            (b)         the development has not been substantially commenced within the period of 2 years after the grant of the application (or such longer period as the Commissioner may allow).

        (10)         An application under subsection (5) or (8) must be in the form, and contain the information, determined by the Commissioner.

        (11)         For the avoidance of doubt, the Commissioner may only treat a related corporation as if it were a single corporation if an exemption has been granted on an application under subsection (5).

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