(1) In this section
—
acquiring person , in relation to an acquisition,
means the person making the acquisition;
notional transfer , in relation to an acquisition,
means a notional transaction consisting of the transfer, at the time of the
acquisition, by the relinquishing person to the acquiring person of the
relevant residential property, as if the relevant residential property were
property of the relinquishing person;
relevant residential property , in relation to an
acquisition of an interest in a residential landholder, means the residential
property in Western Australia to which the landholder, and each linked entity
in respect of the landholder, is entitled;
relinquishing person , in relation to an
acquisition, means the person from whom the interest in the residential
landholder was acquired.
(2) This section
applies to an acquisition of an interest in a residential landholder if no
foreign transfer duty would be chargeable, or foreign transfer duty would be
chargeable only to a particular extent, on the notional transfer in relation
to the acquisition.
(2A) If no foreign
transfer duty would be chargeable on the notional transfer, the acquisition is
exempt.
(2B) If foreign
transfer duty would be chargeable on the notional transfer only to a
particular extent, then despite Chapter 3 Part 6 Division 5, the amount of
foreign landholder duty chargeable in respect of the acquisition is the amount
of foreign landholder duty calculated under that Division in respect of the
acquisition reduced by the same proportion as the proportion of the notional
transfer on which no foreign transfer duty would be chargeable.
(3) For the purposes
of this section, the acquiring person in respect of an acquisition to which
section 205ZH(1)(a)(ii) applies is to be treated as if they were a foreign
person.
(4) If the acquiring
person did not acquire the interest in the residential landholder from another
person, the reference to the relinquishing person in the definition of
notional transfer in subsection (1) is to be read (according to what is
relevant) as a reference to the or a person —
(a)
whose interest in the landholder is decreased because of the acquisition; or
(b)
whose interest in the landholder decreased resulting in the acquisition.
Note for this subsection:
An acquiring person
may acquire an interest in a company by the company issuing shares to the
person, or buying back shares of another person.
(5) This section does
not apply if —
(a) no
foreign transfer duty would be chargeable, or foreign transfer duty would be
chargeable only to a particular extent, on the notional transfer because of an
exemption or reduction under Chapter 6; or
(b)
section 194 applies to the acquisition.
[Section 205ZM inserted: No. 24 of 2018 s. 8;
amended: No. 12 of 2019 s. 113.]