The NSW Administrative Decisions Tribunal has affirmed the Commissioner’s decision to assess to duty a Trust Deed on the basis that the Trust Deed comprised a “declaration of trust” over a property.
The Tribunal heard details of the subject Trust Deed, which, among other things, recited that the Trustee (being the taxpayer) “wished to acquire a specified property ‘on behalf of the Trust'” (Recital C). The Trust Deed was executed by the taxpayer on 1 September 2011. The property specified in the Trust Deed was purchased by the taxpayer by way of contract entered into on 2 September 2011. The purchaser was described as “Al-Saeed & Associates Pty Ltd ATF Al-Saeed Education and Welfare Trust”. The taxpayer then sought to be declared an exempt charitable body for stamp duty purposes. However, the Commissioner refused the application and assessed duty on the Trust Deed with the dutiable value based on the contract of sale.
The Tribunal held that, in this instance, the definition of “declaration of trust” as set out in s 8(3) of the Duties Act 1997 (NSW) and as considered by the various cases, leads to a conclusion that the Trust Deed was a declaration of trust for stamp duty purposes. In doing so, it confirmed the duty assessment and interest imposed by the Commissioner.
(Al-Saeed & Associates Pty Ltd ATF Al-Saeed Education and Welfare Trust v Chief Comr of State Revenue [2013] NSWADT 155, NSW Administrative Decisions Tribunal, Hole JM, 9 July 2013.)
[LTN 138, 19/7/13]