Western Australian Current Acts

DUTIES ACT 2008 - SECT 78

78 .         Dutiable value of transfer of dutiable property to retiring partner

        (1)         This section applies if —

            (a)         a person (the retiring partner ) ceases to be a partner in a partnership because of the retiring partner’s retirement from the partnership or its dissolution; and

            (b)         on the retirement or dissolution, dutiable property (the transfer property ) of the partnership is transferred or agreed to be transferred to the retiring partner; and

            (c)         the transfer property is, or is an interest in, a particular item of dutiable property (the relevant partnership property ) held by the partnership immediately before the retirement or dissolution.

        (2)         In determining the dutiable value of the dutiable transaction that is the transfer or agreement referred to in subsection (1)(b), the unencumbered value of the transfer property is to be determined as follows —

            (a)         first, the aggregate unencumbered value of the following is to be determined —

                  (i)         the transfer property;

                  (ii)         if the transfer property is an interest in the relevant partnership property — relevant retained property (if any) in relation to the transfer property;

            (b)         second, the value determined in accordance with paragraph (a) is to be reduced by an amount calculated by applying the retiring partner’s partnership interest in the partnership to the unencumbered value, immediately before the retirement or dissolution, of the relevant partnership property.

        (3)         Property is relevant retained property in relation to the transfer property for the purposes of subsection (2)(a)(ii) if —

            (a)         the property is also an interest in the relevant partnership property; and

            (b)         immediately before the retirement or dissolution, the retiring partner was the legal owner of the property and held it for the partnership; and

            (c)         immediately after the retirement or dissolution, the retiring partner remains the legal owner of the property but no longer holds it for the partnership.

        (4)         This section does not apply to a transfer that is taken to occur under section 78A(2).

        [Section 78 inserted: No. 12 of 2019 s. 29.]