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Sections: s10(1)(a)&(d)

Lodgement category: ELM

Circumstances/Transactions:

For transfers of land or land use entitlement upon which a business is conducted, the unencumbered value of that land may be difficult to determine.

The Duties Act 2000 does not charge duty separately on the sale of a business, but the presence of a business may affect the value of the land.

See Revenue Ruling DA-029.

Evidence:

  1. The Digital Duties Form.
  2. A copy of the contract of sale, including all the special conditions.
  3. A copy of a sale of business agreement (if any), including a breakdown of the values attributed to the 'plant and equipment' and the 'goodwill'.
  4. Any valuation of the unencumbered value of the land transferred with the business and the basis of that valuation, if required – see Revenue Ruling DA-029.
  5. Where the value of the land, business and goods exceeds $1 million, a valuation is required.
  6. A valuation will also be required if the transaction involves:
    • Related or associated persons.
    • A transfer of a fractional interest.
    • The declared value does not reflect the market value in view of the capital improved value (CIV).
  7. A valuation may be required in any other circumstances in which the Commissioner considers it necessary.
  8. In addition, for transfers of land use entitlement, please provide:
    • The share transfer.
    • The constitution or memorandum of articles of the company in which the shares are in.

See Publication D04-04 Land Use Entitlements - Company share flats.