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Sections: s44 (3)

Lodgement category: Spouse or Domestic Partner Transfer

Sub category: Breakdown of Relationship - transfer to a party that is not the spouse or domestic partner of the transferor

Circumstances/Transactions:

A transfer of dutiable property made solely because of a breakdown in marriage or domestic relationship is exempt where it satisfies all of the following: 

  1. The transferor is a corporation.  If the corporation is holding its interest in the property as trustee of a trust, this section does not apply.  You must refer to the evidentiary requirements for s44(1)(b)(ii)
  2. The transferee is one of the following:
    1. A party or both parties to the marriage or domestic relationship
    2. A dependent child of a party or both parties to the marriage or domestic relationship
    3. A combination of the parties to the marriage or domestic relationship and a dependent child of theirs
    4. A trustee of a trust of which no person is a beneficiary other than a party of both parties to the marriage or domestic relationship or a dependent child of the parties
  3. No other person takes or is entitled to take an interest in the property
  4. The dutiable value of the transfer does not exceed the value of the interest of the parties to the marriage or domestic relationship in the corporation
  5. As a result of the transfer, the value of the interest of the parties to the marriage of domestic relationship in the corporation is reduced by the same amount as the dutiable value of the property transferred

Evidence:

Where applicable, the following requirements must be produced.  If any are not applicable, please explain why.

  1. Digital duties form (for all contracts or agreements entered into on or after 1 July 2017)
  2. A copy of the historical certificate of title
  3. A historical ASIC search of the transferor corporation
  4. A copy of the latest balance sheet of the corporation showing this property listed as an asset of the corporation, or provide a copy of the asset register of the corporation
  5. A statutory declaration by an authorised officer of the transferor corporation addressing the matters set out below:
    1. The capacity of the person making the declaration
    2. The capacity in which the corporation is holding the property
    3. Name the parties to the marriage or domestic relationship
    4. Whether the transfer is made solely because of the breakdown of a marriage or domestic relationship
    5. If the any of the transferees are a child of a party or both parties to the marriage or domestic relationship, confirm that they are dependent children as defined in section 44(7) of the Duties Act 2000
    6. Whether any transferee is accepting the property as trustee of a trust. If so, state the full name the trust and provide a full copy of the trust deed
    7. Whether any of the transferees or beneficiaries of the transferee trust are taking or entitled to take an interest in the whole property or part of the property as trustee for another trust. If so, state the full name of the trust. If there are additional shareholders of the transferor corporation, other than the parties to the marriage or domestic relationship, you must also address the following requirements in the statutory declaration:
      1. How the value of the transferees' interest in the corporation have been reduced, either by reference to the number of shares held or the value of such shares (i.e. by cancelation of shares, reduction of capital)
      2. Whether any prior distributions of property have been made to the shareholders of the corporation, and if so identify the assets transferred and to whom

Please note that if the balance sheet provided in item 3 does not sufficiently identify all the assets and liabilities of the corporation and their respective market values (not book values) you must provide valuation evidence for each asset.



Lodge 30 days before settlement through Duties Online
Last modified: 18 February 2020
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