Page 391 - Week 03 - Thursday, 1 June 1989
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ACT Revenue Office ,
PO Box 293.
Civic Square ACT 2608
INFORMATION CIRCULAR SDI/89
ASSESSMENT OF SHARES IN PRIVATE COMPANIES AND UNIT TRUSTS
Introduction
In accordance with Section 99 of the ACT Taxation (Administration) Ordinance, a Determination was made by notice in the Gazette (No. 5155 of 5 May 1989) which changed the method of assessment of duty on the transfer of private company shares and units in private unit trust schemes where that company or trust owns an interest in land in the ACT.
Method of Assessment
The amount of stamp duty payable in respect of the transfer of shares or units in private companies and trusts executed on and after S May 1989 will be assessed as follows:
1. duty at conveyance rates on the value of the interest in land transferred -deemed to be proportional to the total number of issued shares or units;
PLUS
2. duty at marketable security rates on the unencumbered
value of the shares or units (arrived at by normal--- - -
share valuation methods) less the value of the interest
in the land.
Transfers of shares or units in private companies or unit trusts that do not hold interests in land in the AC. will continue to be assessed in the normal manner.
Interest in Land
.he term "interest in land" can be interpreted very broadly and includes:
1. a Crown Lease over, or estate in fee simple in land in the ACT;
2. a lease, sub-lease or an interest in a lease, sub lease over land in the ACT
3. a beneficial interest in land in the ACT such as a contract for sale or a successful bid at auction;
4. an interest as beneficiary of a trust which owns land in the ACT;
S. ownership of shares/units is unlisted companies/unit trusts which own land or an interest in land in the ACT.
In the context of these provisions it would not usually be interpreted as including a mortgage or other security over land in the AC:.
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