South Australian Current Acts South Australian Current Acts60A—Value of property conveyed or transferred
(1) Subject to
subsection (2), a reference in this Act (other than in Part 4) to the
value of property conveyed or transferred is a reference to the market value
of the property as at the date of the conveyance, assuming that the property
had, at that date, been free from any encumbrances.
(2) In the case of a
conveyance on sale, the Commissioner may treat the consideration for the sale
as being the value of the property conveyed or transferred unless it appears
to the Commissioner that the consideration may be less than the value of the
property as referred to in subsection (1).
(3) Where no evidence
of the value of property conveyed or transferred, or comprising or forming
part of the consideration for a conveyance, is furnished to the Commissioner,
or the evidence so furnished is, in his opinion, unsatisfactory, the
Commissioner may cause a valuation of the property to be made by some person
appointed by him and may assess the duty payable by reference to that
valuation.
(4) The Commissioner
may, having regard to the merits of the case, charge the whole or a part of
the expenses of, or incidental to, the making of a valuation pursuant to
subsection (3) to the person liable to pay the duty and may recover the
amount so charged from him as a debt due to the Crown.
(4a) Where an
interest, agreement or arrangement (granted or made on or after 7 January
1997) in respect of property has the effect of reducing the value of the
property, the Commissioner may, for the purposes of assessing the duty payable
on a conveyance of the property, disregard the existence of the interest,
agreement or arrangement unless a person liable to pay the duty satisfies the
Commissioner that the interest, agreement or arrangement—
(a) was
granted or made for a purpose other than reducing the value of the property;
and
(b) was
not granted or made in favour of the transferee or a person related to the
transferee.
(4b) Where an estate
or interest conveyed or transferred merges with an estate or interest already
held by the transferee (the latter having been acquired by the transferee on
or after 7 January 1997), the Commissioner may, for the purposes of assessing
the duty payable on the conveyance, treat the value of the estate or interest
conveyed or transferred as being—
(a)
where the instrument creating the estate or interest already held was charged
with ad valorem duty as a conveyance—the value of the estate or interest
produced by the merger less the value of the estate or interest already held;
or
(b) in
any other case—the value of the estate or interest produced by the
merger.
(5) In
subsection (1)—
"encumbrance" does not include a prescribed encumbrance or an encumbrance of a
prescribed kind.
(6) For the purposes
of subsection (4a) (but subject to subsection (7))—
(a)
natural persons are related persons if—
(i)
they are members of a partnership within the meaning of
the Partnership Act 1891 ; or
(ii)
one is the spouse or domestic partner of the other or the
relationship between them is that of parent and child; and
(b)
companies are related persons if they are related bodies corporate within the
meaning of the Corporations Act 2001 of the Commonwealth; and
(c)
trustees are related persons if any person is a beneficiary common to the
trusts of which they are trustees; and
(d) a
natural person and a company are related persons if the natural person is a
majority shareholder, director or secretary in or of the company or in or of
another company that is a related body corporate of the company within the
meaning of the Corporations Act 2001 of the Commonwealth; and
(e) a
natural person and a trustee are related persons if the natural person is a
beneficiary of the trust of which the trustee is a trustee; and
(f) a
company and a trustee are related persons if—
(i)
the company, or a majority shareholder, director or
secretary in or of the company, is a beneficiary of the trust of which the
trustee is a trustee; or
(ii)
a related body corporate of the company (within the
meaning of the Corporations Act 2001 of the Commonwealth) is a
beneficiary of the trust of which the trustee is a trustee.
(7) For the purposes
of subsection (4a), persons are not related persons if the Commissioner
is satisfied that the persons were not acting together to achieve a common
purpose.
(8) In
subsection (6)—
"majority shareholder", in relation to a company, means a person who would
have a substantial shareholding in the company as defined in section 9 of the
Corporations Act 2001 of the Commonwealth if the reference to 5% in
paragraph (a) of the definition of "substantial holding in that section were
replaced by a reference at 50%.
(9) In addition to the
preceding subsections, when determining the value of property—
(a) it
is to be assumed that a hypothetical purchaser would, when negotiating the
price for the property, have knowledge of all existing information relating to
the property; and
(b) no
account is to be taken of any amount that a hypothetical purchaser would have
to expend to reproduce, or otherwise acquire a permanent right of access to
and use of, existing information relating to the property.