In a decision handed down on Thur 15.8.2013, the SA Supreme Court dismissed a taxpayer’s appeal against a decision of the SA Treasurer disallowing an objection against a duty assessment. The liability was raised under the land rich provisions contained in the Stamp Duties Act 1923 (SA).
The matter concerned a transaction in which the taxpayer acquired a significant interest in a trust. As a result of the same transaction, the trust became a land rich entity. The issue before the Supreme Court was whether s 95(1) of the Stamp Duties Act can only apply to acquisitions in an entity that was a land rich entity immediately prior to the acquisition, or whether s 95(1) can also apply where the entity becomes a land rich entity as a result of the acquisition.
In dismissing the taxpayer’s appeal, the Court held relevant test under s 95 was whether the transaction has resulted in the person or group having a significant interest in a land rich entity.
(Growthpoint Properties Ltd v Comr of State Taxation [2013] SASC 131, SA Supreme Court, Gray J, 15 August 2013.)
[LTN 157, 15/8/13]