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This is a Bill, not an Act. For current law, see the Acts databases.
Western Australia
Revenue Laws Amendment (Assessment)
Bill 2000
CONTENTS
Part 1 -- Preliminary
1. Short title 2
2. Commencement 2
Part 2 -- Stamp Act 1921 amended
Division 1 -- Preliminary and miscellaneous
3. The Act amended 3
4. Third Schedule amended 3
Division 2 -- Corporate reconstructions
5. Section 75J amended 3
6. Section 75JB amended and transitional provision 3
7. Section 75JBA inserted 6
8. Section 75JDA inserted and transitional provision 7
9. Sections 75JE and 75JF amended 9
10. Section 75JG amended 9
Division 3 -- Power to reassess
11. Section 31 amended 10
12. Sections 31AA, 31AB and 31AC inserted 10
13. Section 32 amended 14
14. Section 33 amended 15
15. Section 39 amended 15
Division 4 -- Exemption from duty on licensing of
modified motor vehicles
16. Third Schedule amended 16
page i
135--1
Revenue Laws Amendment (Assessment) Bill 2000
Contents
Part 3 -- Land Tax Assessment Act 1976
amended
17. The Act amended 17
18. Section 18A inserted 17
19. Schedule amended 18
page ii
Western Australia
LEGISLATIVE ASSEMBLY
Revenue Laws Amendment (Assessment)
Bill 2000
A Bill for
An Act to amend the --
• Stamp Act 1921; and
• Land Tax Assessment Act 1976,
and for related purposes.
The Parliament of Western Australia enacts as follows:
page 1
Revenue Laws Amendment (Assessment) Bill 2000
Part 1 Preliminary
s. 1
Part 1 -- Preliminary
1. Short title
This Act may be cited as the Revenue Laws Amendment
(Assessment) Act 2000.
5 2. Commencement
(1) Subject to subsection (2) this Act comes into operation on the
day on which it receives the Royal Assent.
(2) Part 3, other than section 19(2) is deemed to have come into
operation on 30 June 1995.
page 2
Revenue Laws Amendment (Assessment) Bill 2000
Stamp Act 1921 amended Part 2
Preliminary and miscellaneous Division 1
s. 3
Part 2 -- Stamp Act 1921 amended
Division 1 -- Preliminary and miscellaneous
3. The Act amended
The amendments in this Part are to the Stamp Act 1921*.
5 [* Reprinted as at 22 October 1999 .
For subsequent amendments see 1999 Index to Legislation of
Western Australia, Table 1, pp. 236-7.]
4. Third Schedule amended
Item 2(7c) of the Third Schedule is amended by deleting
10 "section" and inserting instead --
" and ".
Division 2 -- Corporate reconstructions
5. Section 75J amended
Section 75J(2)(a)(ii) is amended by deleting "company" and
15 inserting instead --
" body corporate ".
6. Section 75JB amended and transitional provision
(1) Section 75JB(5) is repealed and the following subsections are
inserted instead --
20 "
(5) If within 5 years after the execution of the instrument
or the date of the relevant acquisition A and B cease to
be associated then the claw-back applies.
(5a) The claw-back under subsection (5) does not apply if A
25 and B cease to be associated in circumstances where A
has no assets or no assets other than cash or money in
an account at call or on deposit with any person or a
negotiable instrument.
page 3
Revenue Laws Amendment (Assessment) Bill 2000
Part 2 Stamp Act 1921 amended
Division 2 Corporate reconstructions
s. 6
(5b) If A is liquidated a reference in subsection (5a) to its
assets is a reference to them at the time of the
appointment of the liquidator and at all subsequent
times until they are distributed to the shareholders.
5 (5c) In subsections (5c) to (5j) --
"controlling body" means --
(a) in a case to which subsection (5e)(a) applies,
a body corporate which, at the time of the
execution of the instrument or the date of the
10 relevant acquisition, owned and controlled
the parent body;
(b) in a case to which subsection (5e)(b) applies,
a body corporate which, at the time the
association referred to in subsection (5e)(b)
15 arose, owned and controlled the parent body;
"own and control" a body corporate means to
beneficially own (directly or indirectly) at least
90% of the issued share capital of, and have
control (within the meaning of section 75J(2)(b))
20 over, the body corporate;
"parent body" means the other body corporate
referred to in subsection (5d) or, if there is more
than one of them, whichever of them did not, at the
relevant time or date mentioned in the definition of
25 "controlling body", own and control any of the
others;
"qualifying period" has the same meaning as it has in
subsection (1)(d).
(5d) An association is a "prescribed relationship" for the
30 purposes of subsection (5e) if A and B are associated
because another body corporate owns and controls each
of them.
page 4
Revenue Laws Amendment (Assessment) Bill 2000
Stamp Act 1921 amended Part 2
Corporate reconstructions Division 2
s. 6
(5e) For the purposes of subsection (5f), the "relevant
circumstances" have occurred if --
(a) the association between A and B which
satisfied the requirement of subsection (1)(c)
5 was a prescribed relationship for the whole or a
part of the qualifying period; or
(b) the association between A and B which
prevents the claw-back under subsection (5)
from applying is a prescribed relationship.
10 (5f) If the relevant circumstances have occurred and, on or
after 25 May 2000 and within 5 years after the
execution of the instrument or the date of the relevant
acquisition, the parent body --
(a) ceases to beneficially own (directly or
15 indirectly) at least 90% of the issued share
capital of B; or
(b) ceases to have control (within the meaning of
section 75J(2)(b)) over B,
then --
20 (c) the parent body and B shall notify the
Commissioner in writing in a form approved by
the Commissioner within one month after the
relevant event; and
(d) the claw-back applies.
25 (5g) Despite subsection (5f)(d), the Commissioner may, on
an application under this subsection, waive the
claw-back if --
(a) a body corporate approved by the
Commissioner (being a controlling body)
30 continues to own and control B; and
(b) the Commissioner is satisfied that waiving the
claw-back would not be inconsistent with the
objects of this section.
page 5
Revenue Laws Amendment (Assessment) Bill 2000
Part 2 Stamp Act 1921 amended
Division 2 Corporate reconstructions
s. 7
(5h) The application shall be in writing in a form approved
by the Commissioner.
(5i) The Commissioner may require the person making the
application to provide any information and evidence
5 that the Commissioner needs for the purposes of
subsection (5g).
(5j) If the claw-back is waived under subsection (5g) --
(a) subsection (5f) then applies as if references in it
to the parent body were references to the body
10 corporate approved under subsection (5g); and
(b) a reference in this Part to subsection (5f)(c) is
to be read as a reference to that provision as
applied by paragraph (a).
".
15 (2) In the event of a cessation of ownership or control referred to in
section 75JB(5f)(a) or (b) of the Stamp Act 1921 as inserted by
subsection (1) taking place on or after 25 May 2000 and before
this Act receives the Royal Assent, the notification required by
section 75JB(5f)(c) of that Act is to be given within one month
20 after this Act receives the Royal Assent.
7. Section 75JBA inserted
After section 75JB the following section is inserted --
"
75JBA. Operation of claw-back -- application for
25 pre-determination in certain cases
(1) Terms used in this section have the same meanings as
they have in section 75JB.
(2) If a cessation of ownership or control referred to in
section 75JB(5f)(a) or (b) is proposed or contemplated
30 in circumstances where a controlling body will
continue to own and control B, a person acting on
behalf of B, the parent body or the controlling body,
page 6
Revenue Laws Amendment (Assessment) Bill 2000
Stamp Act 1921 amended Part 2
Corporate reconstructions Division 2
s. 8
may request the Commissioner to determine whether in
those circumstances the Commissioner would, under
section 75JB(5g), approve the controlling body and
waive the claw-back.
5 (3) The request shall be in writing in a form approved by
the Commissioner.
(4) The Commissioner may require the person making the
request to provide any information and evidence that
the Commissioner needs to make the determination.
10 (5) If the Commissioner is given sufficient information to
do so the Commissioner shall make the requested
determination.
(6) If the Commissioner determines that the controlling
body would be approved and the claw-back waived
15 then, on an application under section 75JB(5g), the
Commissioner shall approve the controlling body and
waive the claw-back unless the Commissioner is of the
opinion that in relation to the request for a
determination there was not a full and true disclosure
20 of relevant information and evidence.
".
8. Section 75JDA inserted and transitional provision
(1) After section 75JD the following section is inserted --
"
25 75JDA. Exemption may be withheld in certain cases
(1) In this section --
"duty avoidance arrangement" means an
arrangement --
(a) avoiding or circumventing the operation of
30 the provisions of this Part so far as they
make the availability and continued effect of
an exemption under section 75JB dependent
page 7
Revenue Laws Amendment (Assessment) Bill 2000
Part 2 Stamp Act 1921 amended
Division 2 Corporate reconstructions
s. 8
on bodies corporate having been associated
for a particular period or remaining
associated for a particular period; or
(b) having as its purpose, or one of its purposes,
5 the reduction of duty that might otherwise
become payable.
(2) Without limiting section 75JC, the Commissioner may
determine under that section that an exemption under
section 75JB would not be granted in respect of an
10 instrument or a Part IIIBA statement if the
Commissioner considers that the instrument or
statement would, if executed or lodged, relate or be
likely to relate to a duty avoidance arrangement.
(3) Even if on an application under section 75JD it is
15 shown to the satisfaction of the Commissioner that
section 75JB applies, the Commissioner may refuse to
grant an exemption under section 75JB(3) in respect of
an instrument or a Part IIIBA statement if the
Commissioner considers that the instrument or
20 statement relates or is likely to relate to a duty
avoidance arrangement.
(4) Despite subsection (3), if the Commissioner is required
under section 75JC(5) to grant an exemption in respect
of an instrument or a Part IIIBA statement, the
25 exemption is to be granted even if the Commissioner
considers that the instrument or statement relates or is
likely to relate to a duty avoidance arrangement.
".
(2) In subsections (3) and (4) --
30 "transitional period" means the period beginning on
25 October 1999 and ending when subsection (1) comes
into operation.
page 8
Revenue Laws Amendment (Assessment) Bill 2000
Stamp Act 1921 amended Part 2
Corporate reconstructions Division 2
s. 9
(3) If an exemption under section 75JB of the Stamp Act 1921 has
been granted during the transitional period and the
Commissioner is of the opinion that it would not have
been granted if subsection (1) had come into operation on
5 25 October 1999, the claw-back under Part IIIBAAA of that Act
applies.
(4) Section 75JDA(4) of the Stamp Act 1921 does not apply to a
requirement under section 75JC(5) of that Act if the
determination under section 75JC was made during the
10 transitional period.
9. Sections 75JE and 75JF amended
Sections 75JE(1)(b) and 75JF(1)(b) are amended by inserting
after "75JB(4)" --
" or (5f)(c) ".
15 10. Section 75JG amended
(1) Section 75JG(1) and (2) are amended by inserting after
"75JB(4)" --
" or (5f)(c) ".
(2) Section 75JG(3) is amended as follows:
20 (a) by deleting "75JC or an application under section" and
inserting instead --
"
75JBA or 75JC or an application under
section 75JB(5g) or
25 ";
page 9
Revenue Laws Amendment (Assessment) Bill 2000
Part 2 Stamp Act 1921 amended
Division 3 Power to reassess
s. 11
(b) in paragraph (b), by deleting "an application for an
exemption has been made under section" and inserting
instead --
"
5 a request has been made under section 75JBA
or an application has been made under
section 75JB(5g) or
".
Division 3 -- Power to reassess
10 11. Section 31 amended
Section 31(4) is amended by deleting "An" and inserting
instead --
" Subject to section 31AA, an ".
12. Sections 31AA, 31AB and 31AC inserted
15 After section 31 the following sections are inserted --
"
31AA. Reassessment of duty
(1) If, on or after the day on which the Revenue Laws
Amendment (Assessment) Act 2000 receives the Royal
20 Assent, the Commissioner has expressed an opinion
under section 31(1) in relation to an instrument, the
Commissioner --
(a) must if directed to do so by a court determining
an appeal under section 33 or giving an opinion
25 under section 34; and
(b) subject to subsection (2), may of the
Commissioner's own volition,
reconsider whether or not the instrument is chargeable
with duty and, if so, the amount of duty with which it is
30 chargeable.
page 10
Revenue Laws Amendment (Assessment) Bill 2000
Stamp Act 1921 amended Part 2
Power to reassess Division 3
s. 12
(2) However if the Commissioner's previous opinion in
relation to the instrument was based on --
(a) an interpretation of the applicable law; or
(b) the Commissioner's practice,
5 that was generally applied to instruments of that kind
when that opinion was expressed, then the
Commissioner cannot reconsider the instrument under
subsection (1)(b) on the ground that the interpretation
or practice is or was erroneous.
10 (3) The Commissioner --
(a) must reconsider an instrument under
subsection (1)(a); and
(b) may reconsider an instrument under
subsection (1)(b),
15 even if it has already been reconsidered under
subsection (1).
(4) If the Commissioner reconsiders an instrument under
subsection (1) and is of the opinion --
(a) if the Commissioner was previously of the
20 opinion that the instrument was not chargeable
with duty, that the instrument is chargeable
with duty; or
(b) that the amount of duty with which the
instrument is chargeable is more than the
25 amount that was previously assessed as being
chargeable,
the Commissioner is to --
(c) issue a reassessment of duty in respect of the
instrument; and
30 (d) endorse on the instrument the amount of duty
with which it is chargeable.
page 11
Revenue Laws Amendment (Assessment) Bill 2000
Part 2 Stamp Act 1921 amended
Division 3 Power to reassess
s. 12
(5) Subject to subsection (6), the Commissioner may only
issue a reassessment within 5 years of the date of the
original assessment issued in relation to the instrument.
(6) Even if more than 5 years have elapsed since the
5 original assessment was issued the Commissioner --
(a) must issue a reassessment if directed to do so
by a court; and
(b) may issue a reassessment if the Commissioner
is of the opinion that --
10 (i) there has been an evasion of tax; or
(ii) any previous assessment was issued on
the basis of false or misleading
information.
(7) An instrument on which the duty has been reassessed
15 by the Commissioner under this section shall not, if it
is unstamped or insufficiently stamped, be stamped
otherwise than in accordance with the reassessment of
duty issued under this section in respect of that
instrument.
20 31AB. Effect of reassessment
(1) A reassessment supersedes the previous assessment
issued in relation to the instrument.
(2) A reassessment does not invalidate proceedings for the
recovery of duty but an appropriate adjustment may be
25 made to the amount to be recovered in the proceedings
to accord with the reassessment.
(3) If an objection to an assessment is lodged and, before
determination of the proceedings on the objection, a
reassessment is issued, the proceedings may be
30 continued against the reassessment to the extent that it
is liable to the same objection or to an objection that is
the same or similar in substance.
page 12
Revenue Laws Amendment (Assessment) Bill 2000
Stamp Act 1921 amended Part 2
Power to reassess Division 3
s. 12
31AC. Payment of reassessed duty
(1) In this section --
"payment period" means the period, or the extended
period, referred to in section 20(3).
5 (2) If a reassessment is issued after the full amount of the
duty chargeable under the original assessment has been
paid in relation to the instrument, then the difference
between that amount and the reassessed amount of duty
must be paid within --
10 (a) the payment period; or
(b) the period of one month after the day on which
the reassessment is issued,
whichever ends later.
(3) If the full amount required to be paid under
15 subsection (2) is not paid within the period required
under that subsection, or within any period allowed
under section 34C(2), the instrument shall, in addition
to being charged with that amount, be charged with a
fine equal to 20% of that amount or a fine of $2,
20 whichever is greater.
(4) Any fine chargeable under subsection (3) shall be in
addition to, and not in substitution for, any fine
chargeable under section 20.
(5) Any fine charged under subsection (3) shall be denoted
25 on the instrument concerned by a stamp.
(6) The Commissioner may remit wholly or in part any
fine chargeable under subsection (3).
(7) If --
(a) no duty, or less than the full amount of duty,
30 has been paid in relation to the instrument; and
page 13
Revenue Laws Amendment (Assessment) Bill 2000
Part 2 Stamp Act 1921 amended
Division 3 Power to reassess
s. 13
(b) the reassessment is issued not less than one
month before the expiry of the payment period,
then the references in section 20(3) to the amount of
duty payable are to be read as references to the
5 reassessed amount of duty less any amount of duty
already paid.
(8) If --
(a) no duty, or less than the full amount of duty,
has been paid in relation to the instrument; and
10 (b) the reassessment is issued after, or within one
month before, the expiry of the payment
period --
then, in section 20(3) --
(c) the references to the amount of duty payable
15 are to be read as references to the reassessed
amount of duty less any amount of duty already
paid; and
(d) the reference to the payment period is to be
read as a reference to the period ending one
20 month after the day on which the reassessment
is issued.
".
13. Section 32 amended
(1) Section 32(5) is amended by inserting after "20" --
25 " or 31AC ".
(2) Section 32(6) is amended by inserting after "shall include" --
" a reassessment issued under section 31AA and ".
page 14
Revenue Laws Amendment (Assessment) Bill 2000
Stamp Act 1921 amended Part 2
Power to reassess Division 3
s. 14
14. Section 33 amended
Section 33(4) is amended by deleting ", and order the
Commissioner to refund the amount of any excess of duty
which may have been paid and the amount of any excess of any
5 fine charged under section 20." and inserting instead --
"
or 31AC, and order the Commissioner --
(a) if the Court determines that the instrument has
been charged with excess duty, to refund the
10 amount of any of that excess of duty which may
have been paid and the amount of any excess of
any fine charged under section 20 or 31AC; or
(b) if the Court determines that the instrument has
been charged with insufficient duty, to reassess
15 the instrument under section 31AA.
".
15. Section 39 amended
(1) Section 39(1a)(b) is amended by inserting after "20(3)" --
"
20 or the full amount required to be paid under
section 31AC(2) is not paid within the period
required under section 31AC(2), or the
extended period referred to in section 31AC(3)
".
25 (2) Section 39(1a)(d) is amended by deleting "section 20(2) or (3)
or 20(2) and (3)" and inserting instead --
"
one or more of section 20(2), section 20(3) and
section 31AC(3)
30 ".
page 15
Revenue Laws Amendment (Assessment) Bill 2000
Part 2 Stamp Act 1921 amended
Division 4 Exemption from duty on licensing of modified motor vehicles
s. 16
Division 4 -- Exemption from duty on licensing of modified
motor vehicles
16. Third Schedule amended
After item 9(4) of the Third Schedule the following subitems
5 are inserted --
"
(5) A licence issued to a person for a motor vehicle --
(a) that was modified and that was, before the issue of
the licence, last licensed in that person's name
10 under --
(i) the RTA;
(ii) a law of any other country corresponding to
the RTA; or
(iii) a corresponding State law;
15 or
(b) that was part of a motor vehicle that was modified
and that was, before the issue of the licence, last
licensed in that person's name under --
(i) the RTA;
20 (ii) a law of any other country corresponding to
the RTA; or
(iii) a corresponding State law.
(6) The exemption in subitem (5) applies whether or not a
motor vehicle that results from the modification needs to
25 meet a standard or requirement before it can be licensed that
is different to the one that the original vehicle had to meet.
".
page 16
Revenue Laws Amendment (Assessment) Bill 2000
Land Tax Assessment Act 1976 amended Part 3
s. 17
Part 3 -- Land Tax Assessment Act 1976 amended
17. The Act amended
The amendments in this Part are to the Land Tax Assessment
Act 1976*.
5 [* Reprinted as at 30 July 1996.
For subsequent amendments see 1999 Index to Legislation of
Western Australia, Table 1, p. 135.]
18. Section 18A inserted
After section 18 the following section is inserted --
10 "
18A. Certain public authorities to be treated as owners
If --
(a) a body that --
(i) is established by an Act; and
15 (ii) is liable to assessment and taxation
under this Act in relation to any land
that it owns, or would be so liable if it
owned land;
or
20 (b) a body that is excluded from the definition of
"public statutory authority" by regulations
made for the purposes of that definition,
has land vested in it, other than as owner, by or under
an Act, that body is to be treated as if it were the owner
25 of that land for the purposes of this Act.
".
page 17
Revenue Laws Amendment (Assessment) Bill 2000
Part 3 Land Tax Assessment Act 1976 amended
s. 19
19. Schedule amended
(1) After clause 1(b) of Part I of the Schedule the following
paragraphs are inserted --
"
5 (c) Qualification for certain public authorities
If the owner of any land referred to in paragraph (a) includes
a body referred to in section 18A, that land is not exempt
land. However, no-one referred to in paragraph (a) (other
than the body, where relevant) is liable for assessment and
10 taxation under this Act in respect of that land.
(d) Paragraph (c) prevails over paragraph (b)
If paragraphs (b) and (c) would otherwise make different
persons liable for assessment and taxation in relation to
particular land, only the person liable under paragraph (c) is
15 so liable.
".
(2) After clause 9 of Part I of the Schedule the following clause is
inserted --
"
20 9A. (a) Class of land
If, in relation to land and to a year of assessment --
(i) the owner is not, or none of the owners are, using
the land solely or principally as his or her or their
sole or principal place of residence at midnight on
25 30 June immediately preceding that year because of
a requirement that the land be vacant pursuant to a
mortgagee's right to sell the land; and
(ii) an exemption under clause 9, 10 or 11 of this Part
would have applied to that year of assessment in
30 respect of the land but for that requirement,
an exemption applies to that year of assessment in respect of
the land to the extent one would have if the owner, or an
owner, were using the land solely or principally as his or her
page 18
Revenue Laws Amendment (Assessment) Bill 2000
Land Tax Assessment Act 1976 amended Part 3
s. 19
sole or principal place of residence at midnight on 30 June
immediately preceding that year.
(b) Qualifications
The exemption in paragraph (a) does not apply if --
5 (i) the owner, or an owner, is entitled in that year of
assessment to an exemption under clause 9, 10 or 11
of this Part in respect of any other land; or
(ii) any person derives rent or other income from the
land during the period when the land was required
10 to be vacant.
The exemption in paragraph (a) applies for one year of
assessment only, in relation to the owner or owners and the
land.
(c) Application
15 This clause applies to the year of assessment commencing
on 1 July 2000 and for each subsequent year of assessment.
".
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