A public ruling, when issued, is the published view of the Commissioner of State Revenue (the Commissioner) on the particular topic to which it relates. It therefore replaces and overrides any existing private rulings, memoranda, manuals and advice provided by the Commissioner in respect of the issue(s) it addresses.
Where a change in legislation or case law (the law) affects the content of a public ruling, the change in the law overrides the public ruling—that is, the Commissioner will determine the tax liability or eligibility for a concession, grant or exemption, as the case may be, in accordance with the law.
A enters an agreement to buy land in Queensland from B, to be held on trust for C. There is no trust in place prior to A entering the agreement with B. There is no trust creation within the meaning of the Duties Act, as the capacity in which A holds the dutiable property does not change.
The agreement for transfer between A and B is a dutiable transaction8, as is the trust acquisition of C’s trust interest in the land. Duty is paid on the agreement for transfer of the land. Section 66(2) of the Duties Act applies so that no duty is imposed on the trust acquisition by C.
X owns land in Queensland. A transfer is executed so that X and Y hold the land as trustee for Z. The following dutiable transactions occur:
The first two transactions would be aggregated under section 30 of the Duties Act. If duty is paid on those transactions, section 66(2) of the Duties Act applies so that no duty is imposed on the trust acquisition by Z.
Subsequent to the transactions described in Example 1 above, A transfers the land to the beneficiary C. The conditions under section 123(2)(b)(ii) are not met because:
Consequently the transfer from A to C is liable to duty.
Subsequent to the transactions described in Example 2 above, X and Y transfer the land to the beneficiary Z. Provided the other requirements of section 123 are met, no duty would be imposed in respect of the transfer by X as trustee to Z, as transfer duty was paid for the dutiable transaction that was the creation of a trust of the dutiable property. That is, the exemption will only be in respect of the duty paid under section 9(1)(i) on the transfer from X to X as trustee. Duty would, however, apply to the transfer from Y as trustee to Z because the transfer from X to Y as trustee does not meet the conditions under section 123(2)(b).
D enters into an agreement with E, to buy E’s application for a petroleum lease to be granted under the Petroleum and Gas (Production and Safety) Act 2004. As applications for petroleum leases cannot be transferred, the agreement includes a term requiring E to transfer the granted authority to D, and to hold the petroleum lease on trust for D from the time it is granted to E. The following dutiable transactions occur:
Transaction 1 is exempted from transfer duty under section 137(1)(a) of the Duties Act, which exempts grants of resource authorities.16
As Transaction 1 is exempt, section 66(2) of the Duties Act applies so that no duty is imposed on the trust acquisition by D in Transaction 2.
However, Transaction 3 does not receive the benefit of the exemption in section 123. When E transfers the granted authority to D, the conditions under section 123(2)(b)(ii) of the Duties Act are not met because:
Commissioner of State Revenue
Date of issue: 21 November 2013
|Public Ruling||Issued||Dates of effect|
|DA123.1.1||21 November 2013||21 November 2013||Current|
|Supersedes Practice Direction DA 52.1||14 June 2002||14 June 2002||23 February 2009|