A taxpayer has been unsuccessful before the Supreme Court of Victoria in arguing that a transfer of land to it to act as “agent” for partners in a partnership was exempt from duty or was liable to a nil assessment only.
The matter involved the transfer of 3 blocks of land to the taxpayer. Under the will of an individual who died on 14 June 2008, 5 discretionary testamentary trusts were created. On 1 February 2013, the trustees of each of the trusts, as partners, and the taxpayer, as “agent”, entered into a partnership agreement. Under the agreement, the trustees transferred their interest in the land to the taxpayer. The Commissioner then issued to the taxpayer assessments in respect of duty payable on each of the 3 transfers.
The taxpayer objected to the assessments. The taxpayer argued the transfers were exempt under either s 35(1)(a) (as transfers to a trustee or nominee without change in the beneficial ownership of the property) or s 33 (as transfers made solely because of a change in trustees) of the Duties Act 2000 (Vic), or the transfers involved the transfer of legal title only with nil or nominal duty payable. The Supreme Court dismissed the taxpayer’s appeal. It held that neither the exemptions under s 35(1)(a) or s 33 applied. It also held the dutiable value of each property transferred was not nil or nominal.
(White Rock Properties Pty Ltd v Comr of State Revenue [2014] VSC 312, Supreme Court of Victoria, Robson J, 1 July 2014.)
[LTN 133, 14/7/14]