Interests and acquisitions
An interest in a landholder is an entitlement by a person (otherwise than as a creditor or other person to whom the landholder is liable), whether directly or through another person, to a distribution of property from the landholder on a winding up of the landholder.
Acquiring an interest
A person acquires an interest in a landholder if the person obtains the interest beneficially, including if the person’s interest increases in the landholder regardless of how it is obtained or increased.
A person is taken to obtain an interest beneficially even if the person obtains the interest as trustee of a trust. To avoid doubt, the landholder provisions declare that a transfer of a unit or share is not necessary for a person to acquire an interest in a landholder (see ss. 79 and 80 of the Duties Act 2000 (the Act)).
As a result, a person (including the trustee of a trust) can acquire an interest in a landholder by any means, including the purchase, gift, allotment, issue, cancellation, redemption or surrender of a unit or share, the abrogation or alteration of rights pertaining to a unit or share, the payment of an amount owing on a unit or share and a change in the beneficial ownership of a unit or share.
Please refer to ss. 79 and 80 of the Act and more information about acquisitions of interest in a landholder in Revenue Ruling DA-056.