Western Australian Current Acts

DUTIES ACT 2008 - SECT 91V

91V .         Treatment of certain options under farm-in agreements

        (1)         Subsection (2) applies if —

            (a)         separately from any concessional farm-in transaction contained in it, a farm-in agreement provides, whether conditionally or not, for the grant to the farmee, after the making of the farm-in agreement, of an option to acquire an interest in —

                  (i)         a mining tenement that is a relevant mining tenement for a concessional farm-in transaction contained in the farm-in agreement; or

                  (ii)         a derivative mining right that is a relevant derivative mining right for a concessional farm-in transaction contained in the farm-in agreement;

                and

            (b)         were the option to be granted, the farmee’s acquisition of the option on the grant would be a dutiable transaction under section 11(1)(f).

        (2)         The option is taken to have been granted, and therefore to have been acquired by the farmee, on the making of the farm-in agreement.

        (3)         Duty is not chargeable on the acquisition of an option that is taken to have occurred under subsection (2) if, subsequently, the option will not actually be granted because —

            (a)         the time for the grant of the option, as specified in, or determined in accordance with, the farm-in agreement, passes or expires without the option being granted; or

            (b)         the farmor and farmee otherwise agree that the option is not to be granted.

        (4)         If subsection (3) applies, the Commissioner must, on the application of the taxpayer, reassess the liability to duty on the acquisition of the option.

        (5)         For the purposes of subsection (4), the Taxation Administration Act section 17 applies as if —

            (a)         despite subsection (1) of that section, a person is not entitled to apply for a reassessment after the later of the following —

                  (i)         5 years after the day on which the original assessment was made;

                  (ii)         12 months after the day on which the event referred to in subsection (3)(a) or (b) occurred;

                and

            (b)         despite subsection (4) of that section, the Commissioner may only make a reassessment on an application if the application was made within that time.

        [Section 91V inserted: No. 37 of 2022 s. 8.]