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DUTIES ACT 2008 - SECT 205ZM

205ZM .         Exemption or reduction of foreign landholder duty if foreign transfer duty would not be chargeable

        (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.]



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