South Australian Numbered Acts South Australian Numbered Acts14—Substitution of sections 9 to 13A
Sections 9 to 13A (inclusive)—delete the sections and substitute:
9—Land tax where more than 1 owner of land
(1) This section applies where 2 or more persons are the owners of the same land (whether in the same or in different capacities).
(2) If 2 or more persons are owners of the same land but not all in the same capacity, the Commissioner may treat all who are owners of the land in a particular capacity (to be determined by the Commissioner) as—
(a) the sole owner or owners of the land; and
(b) the sole taxpayer or taxpayers for the land.
(3) If the Commissioner treats a person or persons as the sole owner or owners of land under subsection (2)
, the provisions of this Act under which the value of land is aggregated, for the purpose of the assessment of tax, with the value of other land will apply as if that person or those persons were the sole owner or owners of the land.
, the owners of the land are to be jointly assessed for land tax on the land as if it were owned by a single person, without regard to—
(a) the separate interest of each owner; or
(b) any other land owned by any owner (either alone or with someone else).
does not affect the operation of any provisions of this Act under which the value of land is aggregated, for the purpose of the assessment of tax, with the value of other land.
(6) In addition, each owner of the land is to be separately assessed for land tax on—
(a) the owner's individual interest in the land (as if the owner were the owner of a part of the land in proportion to that interest); and
(b) any other land owned by the owner alone; and
(c) the owner's individual interest in any other land.
(7) Subsection (6)
does not apply to land subject to an excluded trust.
, there is to be deducted from the land tax assessed for an owner under subsection (6)
an amount (if any) necessary to avoid double taxation, being the amount determined by the formula:
Where—
"A" is the proportion of the owner's individual interest in the land to the total interests in that land
"B" is the total amount of land tax assessed on the land under subsection (4)
.
Note—
The deduction is applied to the total land tax assessed for the owner and not just to the land tax assessed for this land.
(9) If a deduction under subsection (8)
would result in a negative amount—
(a) zero is to be substituted for that amount; and
(b) the amount of the difference between that amount and zero will not be credited to any liability for land tax under this Act.
(10) If an owner of land is a trustee of a trust to which the land is subject, no regard is to be had to the existence of the trust in relation to the joint assessment of the owners of the land as referred to in subsection (4)
, but regard is to be had to the existence of the trust in relation to the separate assessment of the owners as referred to in subsection (6)
.
(11) This section applies subject to the operation of section 5AA.
Division 2—Land divided by community or strata plan
10—Assessment of tax against land divided by community or strata plan
(1) If land is divided by a primary, secondary or tertiary plan of community division under the Community Titles Act 1996
—
(a) in the case of the division of land by a primary plan—land tax will be assessed against the primary lots that are not divided by a secondary plan and against a development lot or lots (if any); and
(b) in the case of the division of land by a secondary plan—land tax will be assessed against the secondary lots that are not divided by a tertiary plan and against the development lot or lots (if any); and
(c) in the case of the division of land by a tertiary plan—land tax will be assessed against the tertiary lots and a development lot or lots (if any).
(2) If land is divided by a primary, secondary or tertiary plan of community division under the Community Titles Act 1996
—
(a) in the case of the division of land by a primary plan—where the use of the common property or part of it is, in the opinion of the Valuer-General, reasonably incidental to the use of 1 or more of the primary lots, land tax will not be levied against the common property, or that part of it, but the interest in the common property, or that part of it, that attaches to each primary lot will be regarded for the purposes of valuation as part of the lot; and
(b) in the case of the division of land by a secondary plan—where the use of the common property or part of it is, in the opinion of the Valuer-General, reasonably incidental to the use of 1 or more of the secondary lots, land tax will not be levied against the common property, or that part of it, but the interest in the common property, or that part of it, (and in the common property of the primary scheme referred to in paragraph (a)
(if any)) that attaches to each secondary lot will be regarded for the purposes of valuation as part of the lot; and
(c) in the case of the division of land by a tertiary plan—where the use of the common property or part of it is, in the opinion of the Valuer-General, reasonably incidental to the use of 1 or more of the tertiary lots, land tax will not be levied against the common property, or that part of it, but the interest in the common property, or that part of it, (and in the common property of the primary and secondary schemes referred to in paragraphs (a)
and (b)
(if any)) that attaches to each tertiary lot will be regarded for the purposes of valuation as part of the lot.
(3) If land is divided by a primary, secondary or tertiary plan of community division under the Community Titles Act 1996
and the use of the common property or any part of it is not, in the opinion of the Valuer-General, reasonably incidental to the use of any of the community lots, land tax will be levied against the common property or that part of it and the relevant community corporation is liable for the tax as though it were the owner of the common property.
(4) If land is divided by a strata plan under the Strata Titles Act 1988
, land tax will be assessed against the strata units but not against the common property.
Division 3—Land held on trust
11—Separate assessment of trust land
Where a person is the owner of land as trustee of a trust (other than a trust arising because of a contract to purchase or acquire an estate or interest in the land), the trustee is to be assessed for land tax on the whole of the land subject to the trust as if the land were the only land owned by the trustee.
Note—
This means that where an interest in land is held on trust (other than a trust arising because of a contract to purchase or acquire an estate or interest in the land) and the trustee is the taxpayer for the land, the taxable value of the interest in land—
• will be aggregated with the taxable value of other land subject to the same trust; but
• will not be aggregated with the taxable value of other land owned by the same taxpayer and not subject to the same trust.
12—Land tax for fixed trust if beneficial interests notified to Commissioner
(1) A trustee of a fixed trust to which land is subject may lodge with the Commissioner a written notice of the beneficial interests in the land.
(2) A notice must be in the form, and contain the information, determined by the Commissioner.
(3) A notice takes effect, at the option of the trustee (which must be specified in the notice), for the tax year in which the notice is lodged or for the following year, and remains in force until it is withdrawn by the trustee.
(4) Despite subsection (1)
, if a trustee withdraws a notice that is in force under this section in respect of a fixed trust, the trustee cannot lodge another notice under this section in respect of that fixed trust.
Note—
For changes to beneficial interests see section 13D(6)
(5) If a notice is in force under this section for a fixed trust, the following provisions apply:
(a) a beneficiary of the trust is deemed, for the purposes of this Act (other than a residential land exemption), to be the owner (but not to the exclusion of the trustee) of land subject to the trust that bears the same proportion to the whole of the land subject to the trust as the beneficiary's beneficial interest in land subject to the trust bears to the total beneficial interests in land subject to the trust, and is liable for land tax on that land accordingly, together with any other land owned by the beneficiary, assessed in accordance with section 8A(1) at the rates set out in Schedule 1 Part 2;
(i) constitutes the principal place of residence for all of the beneficiaries of the trust; and
(ii) would, if it were owned by a natural person, be wholly or partially exempted from land tax under a residential land exemption,
the beneficiaries are deemed to be the owners of the land for the purposes of the residential land exemptions;
(c) the trustee is liable for land tax on the whole of the land subject to the trust assessed, in accordance with section 8A(1) at the rates set out in Schedule 1 Part 2, as if the land were the only land owned by the trustee.
Note—
If the beneficiaries are exempt from land tax under paragraph (b)
, the trustee will also be exempt because the effect of the residential land exemptions is to render the land exempt from land tax.
, there is to be deducted from the land tax payable by a beneficiary under subsection (5)(a)
an amount (if any) necessary to avoid double taxation, being the amount determined by the formula:
Where—
"A" is the proportion of the beneficiary's beneficial interest in the land subject to the trust to the total beneficial interests in land subject to the trust
"B" is the total amount of land tax assessed on the trustee under subsection (5)(c)
.
Note—
The deduction is applied to the total land tax assessed for the beneficiary and not just to the land tax assessed for the land subject to the trust.
(7) If a deduction under subsection (6)
would result in a negative amount—
(a) zero is to be substituted for that amount; and
(b) the amount of the difference between that amount and zero will not be credited to any liability for land tax under this Act.
(8) Subsection (5)(a)
does not apply to a beneficiary who holds a beneficial interest as trustee of another trust.
Note—
Section 13B(1)(a)
deems such a person to be the owner of land.
(9) For the purposes of this section, a reference to a fixed trust does not include a public unit trust scheme.
13—Land tax for unit trust scheme if unitholdings notified to Commissioner
(1) A trustee of a unit trust scheme to which land is subject may lodge with the Commissioner a written notice of the unitholdings in the scheme.
(2) A notice must be in the form, and contain the information, determined by the Commissioner.
(3) A notice takes effect, at the option of the trustee (which must be specified in the notice), for the tax year in which the notice is lodged or for the following year, and remains in force until it is withdrawn by the trustee.
(4) Despite subsection (1)
, if a trustee withdraws a notice that is in force under this section in respect of a unit trust scheme, the trustee cannot lodge another notice under this section in respect of that unit trust scheme.
Note—
For changes to unitholdings see section 13D(7)
(5) If a notice is in force under this section for a unit trust scheme, the following provisions apply:
(a) a unitholder in the scheme is deemed, for the purposes of this Act (other than a residential land exemption) to be the owner (but not to the exclusion of the trustee) of land subject to the scheme that bears the same proportion to the whole of the land subject to the scheme as the unitholder's unitholding in the scheme bears to the total unitholdings in the scheme, and is liable for land tax on that land accordingly, together with any other land owned by the unitholder, assessed in accordance with section 8A(1) at the rates set out in Schedule 1 Part 2;
(i) constitutes the principal place of residence for all of the unitholders in the scheme; and
(ii) would, if it were owned by a natural person, be wholly or partially exempted from land tax under a residential land exemption,
the unitholders are deemed to be the owners of the land for the purposes of the residential land exemptions;
(c) the trustee is liable for land tax on the whole of the land subject to the trust assessed, in accordance with section 8A(1) at the rates set out in Schedule 1 Part 2, as if the land were the only land owned by the trustee.
Note—
If the unitholders are exempt from land tax under paragraph (b)
, the trustee will also be exempt because the effect of the residential land exemptions is to render the land exempt from land tax.
, there is to be deducted from the land tax payable by a unitholder under subsection (5)(a)
an amount (if any) necessary to avoid double taxation, being the amount determined by the formula:
Where—
"A" is the proportion of the unitholder's unitholding in the scheme to the total unitholdings in the scheme
"B" is the total amount of land tax assessed on the trustee under subsection (5)(c)
.
Note—
The deduction is applied to the total land tax assessed for the unitholder and not just to the land tax assessed for the land subject to the unit trust scheme.
(7) If a deduction under subsection (6)
would result in a negative amount—
(a) zero is to be substituted for that amount; and
(b) the amount of the difference between that amount and zero will not be credited to any liability for land tax under this Act.
(8) Subsection (5)(a)
does not apply to a unitholder who holds units as trustee of another trust.
Note—
Section 13B(1)(b)
deems such a person to be the owner of land.
(9) For the purposes of this section, a reference to a unit trust scheme does not include a public unit trust scheme.
13A—Land tax for discretionary trust if beneficiary notified to Commissioner
(1) A trustee of a discretionary trust to which land is subject may, not later than 30 June 2021, lodge with the Commissioner a written notice specifying 1 beneficiary of the trust who, subject to subsections (13)
and (14)
, is to be taken to be the designated beneficiary of the trust for the purposes of this section.
(2) For the avoidance of doubt, a trust may only have 1 person who is the designated beneficiary for the purposes of this section (and may only substitute the designated beneficiary by notice lodged under subsection (5)
).
(3) A notice takes effect, at the option of the trustee (which must be specified in the notice), for the tax year in which the notice is lodged or for the following year, and remains in force until it is withdrawn by the trustee or until the designated beneficiary notifies the Commissioner, in writing, that they no longer consent to being the designated beneficiary (in which case the notice is deemed to have been withdrawn by the trustee).
(4) A designated beneficiary may be substituted—
(a) if the designated beneficiary dies or becomes incapacitated; or
(b) if the Commissioner is satisfied that, because of a marriage, de facto relationship or domestic relationship that has broken down irretrievably, the designated beneficiary will no longer be a beneficiary of the trust; or
(c) in circumstances prescribed by the regulations.
(5) If the designated beneficiary may be substituted in accordance with subsection (4)
, a trustee of the trust may lodge with the Commissioner a written notice—
(a) advising the Commissioner of the grounds on which the designated beneficiary may be substituted; and
(b) specifying the name of another beneficiary of the trust who is to be taken to be the designated beneficiary for the purposes of this section in place of the beneficiary named in the original notice.
(6) If a written notice is lodged under subsection (5)
—
(a) subject to subsection (13)
, the beneficiary of the trust specified in the notice becomes the designated beneficiary of the trust; and
(b) the notice under subsection (1)
is taken to have been varied accordingly.
(7) A notice under this section must be in the form, and contain the information, determined by the Commissioner.
(8) Despite subsection (1)
, if a trustee withdraws a notice that is in force under this section in respect of a discretionary trust, the trustee cannot lodge another notice under this section in respect of that discretionary trust.
(9) If a notice is in force under this section for a discretionary trust, the following provisions apply:
(a) the designated beneficiary of the trust is deemed, for the purposes of this Act (other than a residential land exemption), to be the owner (but not to the exclusion of the trustee) of land that was subject to the trust at the prescribed time ("pre-existing trust land") and is liable for land tax on that land accordingly, together with any other land owned by the beneficiary, assessed in accordance with section 8A(1) at the rates set out in Schedule 1 Part 2;
(b) however, if any pre-existing trust land—
(i) constitutes the principal place of residence of the designated beneficiary; and
(ii) would, if it were owned by a natural person, be wholly or partially exempted from land tax under a residential land exemption,
the designated beneficiary is deemed to be the owner of the land for the purposes of the residential land exemptions;
(c) the trustee for the trust is to be assessed for land tax on the whole of the land subject to the trust as if the land were the only land owned by the trustee—
(i) in the case of pre-existing trust land—in accordance with section 8A(1) at the rates set out in Schedule 1 Part 2; or
(ii) in the case of land that became subject to the trust after the prescribed time ("subsequent trust land")—in accordance with section 8A(1a) at the rates set out in Schedule 1 Part 3; or
(iii) in the case where land subject to the trust consists of both pre-existing trust land and subsequent trust land—in accordance with the following formula:
Where—
"L" is the land tax assessed for the trustee
"R 1 " is the applicable rate of land tax set out in Schedule 1 Part 2
"R 2 " is the applicable rate of land tax set out in Schedule 1 Part 3
"T" is the total taxable value of all taxable land subject to the trust
"A" is the total taxable value of the pre-existing trust land subject to the trust
"B" is the total taxable value of the subsequent trust land subject to the trust.
Note—
If the designated beneficiary is exempt from land tax under paragraph (b)
, the trustee will also be exempt because the effect of the residential land exemptions is to render the land exempt from land tax.
(10) If land subject to the trust constitutes the principal place of residence of the trustee, this section does not affect the application of a residential land exemption to the land.
(11) Any land tax payable by the trustee under subsection (9)(c)
in respect of pre-existing trust land is to be deducted from land tax payable by the designated beneficiary.
Note—
The deduction is applied to the total land tax assessed for the designated beneficiary and not just to the land tax assessed for the land subject to the trust.
(12) If a deduction under subsection (11)
would result in a negative amount—
(a) zero is to be substituted for that amount; and
(b) the amount of the difference between that amount and zero will not be credited to any liability for land tax under this Act.
(13) Subject to subsection (14)
, a beneficiary of a trust may be the designated beneficiary of the trust for the purposes of this section only if the beneficiary—
(a) is a natural person; and
(b) was a beneficiary of the trust at the prescribed time; and
(c) is over 18 years of age; and
(d) has verified by statutory declaration that the beneficiary consents to being the designated beneficiary of the trust.
(14) Where no beneficiaries of a trust are over 18 years of age, a notice under this section may specify that the trustee is to be taken to be the designated beneficiary (as if the trustee were a beneficiary of the trust) but only if the trustee is a natural person.
(15) For the purposes of this section, a reference to a discretionary trust does not include a public unit trust scheme.
(16) In this section—
"prescribed time" means midnight on the day on which the Land Tax (Miscellaneous) Amendment Act 2019
was introduced in the House of Assembly.
13B—Land tax for beneficiary/trustees
(a) holds a beneficial interest in land subject to a fixed trust in respect of which a notice is in force under section 12
(the "first trust") as trustee of another trust (the "second trust") is deemed, for the purposes of this Act other than a residential land exemption, to be the owner of land subject to the first trust that bears the same proportion to the whole of the land subject to the first trust as the person's beneficial interest in the land subject to the first trust bears to the total beneficial interests in land subject to the first trust; and
(b) holds units in a unit trust scheme in respect of which a notice is in force under section 13
(the "first scheme") as trustee of another trust (the "second trust") is deemed, for the purposes of this Act other than a residential land exemption, to be the owner of land subject to the first scheme that bears the same proportion to the whole of the land subject to the first scheme as the person's unitholding in the first scheme bears to the total unitholdings in the first scheme.
(2) For the purposes of this section, a person referred to in subsection (1)
is called a "beneficiary/trustee".
, there is to be deducted from any land tax payable by a beneficiary/trustee on land that is subject to the second trust an amount (if any) necessary to avoid double taxation, being the amount determined by the formula:
Where—
"A" is—
(a) the proportion of the beneficiary/trustee's beneficial interest in land subject to the first trust to the total beneficial interests in land subject to the first trust; or
(b) the proportion of the beneficiary/trustee's unitholding in the first scheme to the total unitholdings in the first scheme
"B" is the total amount of land tax assessed on the trustee of the first trust or the first scheme on the whole of the land subject to the first trust or first scheme.
(4) If a deduction under subsection (3)
would result in a negative amount—
(a) zero is to be substituted for that amount; and
(b) the amount of the difference between that amount and zero will not be credited to any liability for land tax under this Act.
(5) This section does not apply where the first or second trust, or the first scheme, is an excluded trust.
13C—Land tax for excluded trusts and public unit trust schemes
A trustee of an excluded trust or of a public unit trust scheme is liable for land tax on the whole of the land subject to the trust assessed, in accordance with section 8A(1) at the rates set out in Schedule 1 Part 2, as if the land were the only land owned by them as a trustee.
Division 4—Miscellaneous trust land provisions
13D—Requirements for trustees to notify Commissioner
(1) A person who becomes a trustee of land in South Australia, including a person who is already a trustee of land and acquires further land as trustee, must lodge a written notice with the Commissioner within 1 month after becoming a trustee of the land.
, a person who, at the time of commencement of this section, is a trustee of land in South Australia and has not notified the Commissioner of that fact for the purposes of this Act, must lodge a written notice with the Commissioner within 1 month after the commencement of this section.
(3) If, at the time of commencement of this section, land referred to in subsection (2)
is excepted or exempted from land tax by the Commissioner, subsection (2)
does not apply to a person who is a trustee of the land but, if circumstances change so that proper grounds for the exception or exemption cease to exist, the person must lodge a written notice with the Commissioner within 1 month after that change in circumstances.
(4) A trustee who disposes of any land that is subject to the trust must lodge a written notice with the Commissioner within 1 month after disposing of the land if the disposal does not result in any change in the legal ownership of the land.
(5) If—
(a) a person is trustee of land in South Australia; and
(b) anything happens that results in the trust to which the land is subject becoming a different category of trust,
the person must lodge a written notice with the Commissioner within 1 month after the thing happens.
(6) A trustee of a fixed trust in respect of which a notice is in force under section 12
must lodge a written notice with the Commissioner within 1 month after any change to the beneficial interests in land subject to the trust.
(7) A trustee of a unit trust scheme in respect of which a notice is in force under section 13
must lodge a written notice with the Commissioner within 1 month after any change to the unitholdings in the scheme.
(8) A corporation ("corporation 1") that is the trustee of a fixed trust or a unit trust scheme, must lodge a written notice with the Commissioner within 1 month after another corporation becomes, or other related corporations between them become, the owner of more than 50% of—
(a) where corporation 1 is the trustee of a fixed trust—the total beneficial interests in land subject to the trust; or
(b) where corporation 1 is the trustee of a unit trust scheme—the total number of units held by the unit holders in the scheme,
(and if, at the time of commencement of this section, a corporation already owns, or related corporations between them already own, more than 50% of the beneficial interests or units (as the case may be), corporation 1 must lodge a written notice with the Commissioner within 1 month after the commencement of this section).
(9) A person who was a personal representative of a deceased estate that includes land in South Australia must lodge a written notice with the Commissioner within 1 month after the administration of that estate is completed.
(10) A trustee of an administration trust must, instead of complying with subsection (1)
, lodge a written notice with the Commissioner within 1 month after probate has been granted, or letters of administration have been issued, in relation to the deceased estate.
(11) A notice under this section must be in the form, contain the information and be accompanied by any documents or other evidence determined by the Commissioner.
(12) In this section—
"category of trust" means—
(a) a fixed trust; or
(b) a unit trust scheme; or
(c) a discretionary trust; or
(d) an excluded trust; or
(e) a public unit trust scheme.
Division 5—Land held on implied, constructive or resulting trust
13E—Land held on implied, constructive or resulting trust
(1) A person who is the owner of land as trustee of an implied, constructive or resulting trust is liable for land tax on the land assessed in accordance with section 8A(1) at the rates set out in Schedule 1 Part 2.
(2) The trustee is to be assessed for land tax on the whole of the land subject to the trust as if the land were the only land owned by the trustee.
13F—Trustee's right to reimbursement under implied, constructive or resulting trust
A trustee of an implied, constructive or resulting trust who pays any land tax assessed on land subject to the trust is entitled to recoup the amount of the tax from any trust property that is subject to the trust.
Division 6—Grouping of related corporations
13G—What are related corporations?
(1) For the purposes of this Division, corporations are related corporations in any of the circumstances specified in this section.
(2) Corporations are "related corporations" if 1 of those corporations—
(a) controls the composition of the board of the other corporation; or
(b) is in a position to cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the other corporation; or
(c) holds more than 50% of the issued share capital of the other corporation.
(3) Corporations are "related corporations" if the same person has, or the same persons have together, a controlling interest in each of the corporations.
Note—
"Controlling interest" is defined in section 13H
.
(4) Corporations are "related corporations" if—
(a) more than 50% of the issued share capital of 1 of those corporations ("corporation 1") is held by the other corporation ("corporation 2") together with the shareholders of corporation 2; and
(b) the percentage of the issued share capital of corporation 2 held by shareholders of corporation 1 is more than the difference between 50% and the percentage of the issued share capital of corporation 1 held by corporation 2.
(5) Corporations are "related corporations" if 1 of the corporations ("corporation 1 ) is the trustee of a fixed trust or a unit trust scheme and another corporation owns, or other related corporations between them own, more than 50% of—
(a) where corporation 1 is the trustee of a fixed trust—the total beneficial interests in land subject to the trust; or
(b) where corporation 1 is the trustee of a unit trust scheme—the total number of units held by the unit holders in the scheme.
(6) Corporations are "related corporations" if 1 of those corporations is a related corporation of a corporation of which the other of those corporations is a related corporation (including a corporation that is a related corporation of the other of those corporations because of 1 or more other applications of this subsection).
Example—
If A and B are related corporations and B and C are related corporations, then by virtue of this provision A and C will also be related corporations because they are both related to B.
13H—What is a controlling interest in a corporation?
For the purposes of this Division, a person has, or persons have together, a controlling interest in a corporation if—
(a) that person, or those persons acting together, can control the composition of the board of the corporation; or
(b) that person is, or those persons acting together are, in a position to cast or control the casting of more than 50% of the maximum number of votes that might be cast at a general meeting of the corporation; or
(c) that person holds, or those persons acting together hold, more than 50% of the issued share capital of the corporation.
13I—Further provisions for determining whether corporations are related corporations
(1) In determining whether corporations are related corporations, the following provisions apply:
(a) corporations may be related corporations whether or not they own land in South Australia;
(b) a reference to the issued share capital of a corporation does not include a reference to any part of it that carries no right to participate beyond a specified amount in a distribution of either profits or capital;
(c) subject to paragraph (d)
, (e)
, (f)
and (g)
, any shares held or power exercisable by a person or corporation as a trustee or nominee for another person or corporation are taken to be also held or exercisable by the other person or corporation;
(d) any shares held or power exercisable by an excluded trust must be disregarded;
(e) any shares held or power exercisable by a person or corporation by virtue of the provisions of any debentures of another corporation, or of a trust deed for securing any issue of any such debentures, must be disregarded;
(f) any shares held or power exercisable by, or by a nominee for, a person or corporation (not being held or exercisable as mentioned in paragraph (e)
) are taken to be not held or exercisable by that person or corporation if—
(i) the ordinary business of that person or corporation includes the lending of money; and
(ii) the shares are held or the power is exercisable only by way of security given for the purposes of a transaction entered into in the ordinary course of business in connection with the lending of money, not being a transaction entered into with an associate of that person or corporation within the meaning of the Corporations Act 2001 of the Commonwealth;
(g) if a trustee holds controlling interests in 2 or more corporations on behalf of different trusts, those corporations are not related to each other only because of that control;
(h) the composition of a corporation's board is taken to be controlled by a person or another corporation if the person or other corporation, by the exercise of a power exercisable whether or not with the consent or concurrence of any other person, can appoint or remove all or a majority of the members of the board.
(2) Subsection (1)(h)
does not limit the circumstances in which the composition of a corporation's board is to be taken to be controlled by a person or another corporation.
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)
.