Western Australian Current Acts Western Australian Current Acts (1) In this section
—
corporate consolidation means the formation of a
family by the interposition of an entity (the head entity ) between another
entity (the affected entity ) and the holders of the affected entity’s
securities.
(2) Subject to this
section, a relevant consolidation transaction is any acquisition on which
landholder duty or foreign landholder duty is chargeable that is made solely
for the purposes of a corporate consolidation and that is —
(a) an
acquisition of securities of the affected entity by the head entity for which
the only consideration given by the head entity is the issue or transfer of
its securities to the person from whom the affected entity’s securities
were acquired; or
(b) an
acquisition of securities of the head entity by a holder of securities of the
affected entity.
(3) An acquisition is
not a relevant consolidation transaction if, immediately before the
acquisition, the head entity held dutiable property or a vehicle or an
interest in an entity.
(4) An acquisition is
not a relevant consolidation transaction unless, immediately after the issue
or transfer of the head entity’s securities —
(a) each
person that holds those securities (a security holder ) is a person that held
securities of the affected entity immediately before the securities of the
affected entity were acquired by the head entity; and
(b) the
proportion of those securities that each security holder holds is the same
proportion as that security holder held of the securities of the affected
entity.
(5) An acquisition is
not a relevant consolidation transaction if any part of the consideration for
the acquisition, or an associated acquisition, has been or is to be provided
by a person that is not a member of the family formed by the corporate
consolidation referred to in subsection (2).
(6) For the purposes
of subsection (5) —
(a) if
the acquisition concerned is an acquisition of securities of the affected
entity by the head entity as referred to in subsection (2)(a) — an
acquisition of securities of the head entity by a holder of securities of the
affected entity that is made for the purposes of the same corporate
consolidation is an associated acquisition ; or
(b) if
the acquisition concerned is an acquisition of securities of the head entity
by a holder of securities of the affected entity as referred to in subsection
(2)(b) — an acquisition of securities of the affected entity by the head
entity that is made for the purposes of the same corporate consolidation is an
associated acquisition.
(7) Subsection (5)
does not apply in relation to consideration provided for an acquisition or an
associated acquisition if —
(a) the
acquisition or associated acquisition is of a kind referred to in subsection
(2)(b); and
(b) the
consideration is the transfer of securities of the affected entity by the
holder of those securities to the head entity.
[Section 259 amended: No. 24 of 2018 s. 9; No. 12
of 2019 s. 119.]