RevenueSA on Fri 16.1.2015, issued Revenue Ruling SDA009 (Conveyance by direction).

  • In a majority of situations involving the sale of land, the transferee named in the Memorandum of Transfer is the same person named as the purchaser in a contract for the sale of that land. In such cases, duty is imposed on the transfer.
  • However, where the purchaser and transferee are not the same, it has previously been RevenueSA’s practice to require the production of certain further documentation to explain the difference. RevenueSA said it has reviewed its long standing practice and, in light of advice received and recent case law, has determined to amend its assessing practices. These changes are explained in the Ruling which took effect from Fri 16.1.2015.

RevenueSA has also issued Revenue Ruling SDA010 (Duty assessed on the sale of a business). When a business is sold as a going concern, the assets are conveyed or transferred to, and often liabilities are assumed by, the purchaser (noting that the vendor and purchaser may agree that certain assets will not be conveyed or transferred to, or liabilities assumed by, the purchaser). The Ruling discusses how duty is assessed with regards to the sale and purchase of a business. The Ruling took effect from Fri 16.1.2015.

[LTN 10, 16/1/15]