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.
ABC Pty Ltd is the corporate trustee of the ABC Investment Trust, a discretionary trust that holds dutiable property. The shareholders of ABC Pty Ltd are X and Y, each holding one share.
Under the terms of the ABC Investment Trust, X, Y and Z are all discretionary objects with X and Y also being takers in default.
A deed of variation of trust is executed removing Y as a beneficiary of the ABC Investment Trust. Consequently, X makes a trust acquisition by acquiring a trust interest in the ABC Investment Trust for which X pays transfer duty.
As part of the same arrangement, Y transfers their share in ABC Pty Ltd to X. Consequently X also makes a relevant acquisition by acquiring a share interest in and control of ABC Pty Ltd.
Corporate trustee duty imposed on the relevant acquisition in ABC Pty Ltd that is payable by X will be reduced by the amount of transfer duty paid by X for the trust acquisition in the ABC Investment Trust.
Same facts as Example 1, except that instead of X making the relevant acquisition, X’s wholly owned company X Pty Ltd makes the relevant acquisition.
Corporate trustee duty imposed on the relevant acquisition in ABC Pty Ltd that is payable by X Pty Ltd will not be reduced by the amount of transfer duty paid by X for the trust acquisition in the ABC Investment Trust because the acquisitions were not made by the same person.
Commissioner of State Revenue
Date of issue: 30 May 2017
|Public Ruling||Issued||Dates of effect|
|DA228.1.1||30 May 2017||30 May 2017||Current|