(1) This section
applies if —
(a) an
acquisition from a person (the transferor ) of an interest in an entity that
is a landholder by the trustee of a discretionary trust was —
(i)
exempt under section 171; or
(ii)
a partially exempt acquisition under section 172;
and
(b)
after the acquisition occurs there is a material alteration to the operation
of the discretionary trust; and
(c) at
the time of the material alteration —
(i)
the entity is a landholder; and
(ii)
the entity, or a linked entity in respect of the entity,
is using solely or dominantly in the business of primary production any of the
land assets to which it was entitled when the acquisition occurred.
(2) There is a
material alteration to the operation of the discretionary trust, as mentioned
in subsection (1)(b), if —
(a)
during the lifetime of the transferor, a person that is not the transferor or
a family member of the transferor —
(i)
becomes entitled to a share or interest in the trust,
whether that share or interest is vested or contingent; or
(ii)
otherwise benefits from the trust;
or
(b) the
transferor gains control of the trust.
(3) For the purposes
of subsection (2) —
(a) the
reference to a family member is to a person who is a family member within the
meaning given in section 100; and
(b) the
matter in paragraph (b) is to be determined in accordance with section 99(2).
(4) On the occurrence
of a material alteration to the operation of the discretionary trust —
(a) an
acquisition of an interest in the entity by the trustee of the trust is taken
to have occurred; and
(b) that
interest is taken to be an interest of the same percentage as that mentioned
in subsection (1)(a); and
(c) the
acquisition is taken to have occurred at the time when the material alteration
occurred.
(5) If the acquisition
mentioned in subsection (1)(a) was a partially exempt acquisition under
section 172 the amount of duty payable in respect of the acquisition that is
taken to have occurred under subsection (4) is to be reduced by the amount of
the duty paid in respect of the partially exempt acquisition.
[Section 173 amended: No. 12 of 2019 s. 78.]