State Taxation Legislation (Amendment) Act 2001

i State Taxation Legislation (Amendment) Act 2001 Act No. 79/2001 TABLE OF PROVISIONS Section Page PART 1—PRELIMINARY 1 1. Purpose 1 2. Commencement 1 PART 2—DUTIES ACT 2000 3 3. Definition 3 4. Mortgagee's interest in marketable securities not dutiable property 3 5. Transfer of land is evidence of goods sold with land 3 6. Refurbished lots 3 7. Time for calculating unencumbered value of dutiable property 4 8. Corporations legislation amendment 4 9. New section 36 substituted 4 36. Property passing to beneficiaries 4 10. Hire of goods duty 5 11. Transitional provisions 5 PART 3—LAND TAX ACT 1958 7 12. Service of documents 7 13. New section 62 substituted 7 62. Service of court process 7 14. New sections 74 and 75 inserted 7 74. Service of documents 7 75. When is service effective? 8 PART 4—TAXATION ADMINISTRATION ACT 1997 10 15. New section 49A inserted 10 49A. Order for tax agent to account for tax 10 16. Failure to comply with Commissioner's notice 10 17. New section 73A inserted 11 -- 1 of 15 -- Section Page ii 73A. Powers of Supreme Court if non-compliance with section 73 11 ═══════════════ ENDNOTES 13 -- 2 of 15 -- 1 State Taxation Legislation (Amendment) Act 2001 † [Assented to 27 November 2001] The Parliament of Victoria enacts as follows: PART 1—PRELIMINARY 1. Purpose The purpose of this Act is to amend the Duties Act 2000, the Land Tax Act 1958 and the Taxation Administration Act 1997. 2. Commencement Victoria No. 79 of 2001 -- 3 of 15 -- Act No. 79/2001 State Taxation Legislation (Amendment) Act 2001 2 This Act comes into operation on the day after the day on which it receives the Royal Assent. _______________ -- 4 of 15 -- Act No. 79/2001 State Taxation Legislation (Amendment) Act 2001 3 PART 2—DUTIES ACT 2000 3. Definition In section 3(1) of the Duties Act 2000, in the definition of "collateral mortgage", for "advance" substitute "amount". 4. Mortgagee's interest in marketable securities not dutiable property In section 10(1)(g) of the Duties Act 2000, after "paragraph (c)" insert "(other than an interest as mortgagee)". 5. Transfer of land is evidence of goods sold with land In section 14 of the Duties Act 2000, after sub- section (3) insert— "(4) For the purposes of this Act, an instrument of transfer of an estate in land is to be taken to effect the transfer of dutiable property referred to in section 10(1)(d) in respect of that land.". 6. Refurbished lots In section 21(4) of the Duties Act 2000— (a) in paragraph (a), for "is the first registered proprietor" substitute "was a first registered proprietor"; (b) in paragraph (b), for "transfer" (where twice occurring) substitute "sale". See: Act No. 79/2000. Reprint No. 1 as at 15 July 2001 and amending Act Nos 27/2001 and 48/2001. LawToday: www.dms. dpc.vic. gov.au s. 3 -- 5 of 15 -- Act No. 79/2001 State Taxation Legislation (Amendment) Act 2001 4 7. Time for calculating unencumbered value of dutiable property In section 22 of the Duties Act 2000, for sub- section (1) substitute— '(1) The "unencumbered value" of dutiable property is the amount for which the property might reasonably have been sold in the open market— (a) in the case of a transfer of dutiable property on a sale of the property—at the time the contract of sale was entered into; (b) in any other case—at the time the dutiable transaction occurred— free from any encumbrance to which the property was subject at that time.'. 8. Corporations legislation amendment In section 31(3)(d) of the Duties Act 2000, for "related corporation" substitute "related body corporate". 9. New section 36 substituted For section 36 of the Duties Act 2000 substitute— '36. Property passing to beneficiaries No duty is chargeable under this Chapter in respect of a transfer of dutiable property that is subject to a trust ("the principal trust") to a beneficiary of the principal trust if— (a) the beneficiary was a beneficiary when the property, or what was substantially the same property, was first vested in a trustee of the principal trust; and (b) the transfer is— s. 7 -- 6 of 15 -- Act No. 79/2001 State Taxation Legislation (Amendment) Act 2001 5 (i) to the beneficiary absolutely; or (ii) to the beneficiary as trustee of another trust ("the second trust") of which all the beneficiaries are natural persons who were beneficiaries of the second trust when the property, or what was substantially the same property, was first vested in a trustee of the principal trust; and (c) the duty (if any) charged by this Act in respect of the first vesting of the property, or what was substantially the same property, in a trustee of the principal trust has been paid.'. 10. Hire of goods duty (1) In section 132 of the Duties Act 2000, for paragraph (a) substitute— "(a) an arrangement that gives a person a right to use goods that is conferred incidentally with a lease of, or a licence to occupy or use, land if there is no apportionment of consideration between the right to use the goods and the right to occupy or use the land;". (2) In section 145(2) of the Duties Act 2000, after "agreements" insert "or equipment financing arrangements". 11. Transitional provisions (1) In Schedule 2 to the Duties Act 2000, in clause 5(5), for "section 36(2)(a)(i)" substitute "section 36(c)". (2) In Schedule 2 to the Duties Act 2000, in clause 9— s. 10 -- 7 of 15 -- Act No. 79/2001 State Taxation Legislation (Amendment) Act 2001 6 (a) in sub-clause (2), for "Subject to sub- clause (4), a mortgage" substitute "A mortgage"; (b) in sub-clause (4), for "sub-clause (2)" substitute "sub-clause (1)(b)". _______________ -- 8 of 15 -- Act No. 79/2001 State Taxation Legislation (Amendment) Act 2001 7 PART 3—LAND TAX ACT 1958 12. Service of documents In section 21 of the Land Tax Act 1958— (a) at the foot of sub-section (1) insert— "Note: For methods of service see section 74.". (b) in sub-sections (3) and (4) omit "by post". 13. New section 62 substituted For section 62 of the Land Tax Act 1958 substitute— "62. Service of court process Any court process in proceedings for the recovery of tax may be served on the defendant in accordance with section 74.". 14. New sections 74 and 75 inserted After the heading to Part VI of the Land Tax Act 1958 insert— '74. Service of documents (1) A notice or other document authorised or required to be served on or given to a person by the Commissioner for the purposes of this Act may be served on or given to the person— (a) personally; or See: Act No. 6289/1958. Reprint No. 10 as at 14 October 1999 and amending Act Nos 69/2000, 10/2001, 27/2001, 29/2001, 44/2001, 46/2001 and 48/2001. LawToday: www.dms. dpc.vic. gov.au s. 12 -- 9 of 15 -- Act No. 79/2001 State Taxation Legislation (Amendment) Act 2001 8 (b) by leaving it at the last address of the person known to the Commissioner (including, in the case of a body corporate, the registered office or a business address of the body corporate); or (c) by post addressed to the person at the last address of the person known to the Commissioner (including, in the case of a body corporate, the registered office or a business address of the body corporate); or (d) by a means indicated by the person as being an available means of service (such as by facsimile or other electronic transmission or by delivering it, addressed to the person, to the facilities of a document exchange); or (e) by any means provided for the service of the document by another Act or law. (2) Service of a document on a member of a partnership, or on a member of the committee of management of an unincorporated association or other body of persons, is taken, for the purposes of this Act, to constitute service of the document on each member of the partnership, or on each member of the association or other body of persons. 75. When is service effective? (1) For the purposes of this Act, a notice or other document must be taken, unless the contrary is proved, to have been served on or given to a person by the Commissioner— s. 14 -- 10 of 15 -- Act No. 79/2001 State Taxation Legislation (Amendment) Act 2001 9 (a) in the case of delivery in person—at the time the document is delivered; (b) in the case of posting—2 business days after the day on which the document was posted; (c) in the case of a facsimile or other electronic transmission—at the time the facsimile or transmission is received. (2) If a facsimile or other electronic transmission is received after 4.00 p.m. on any day, it must be taken to have been received on the next business day. (3) In this section— "business day" means a day other than a Saturday, a Sunday or a public holiday appointed under the Public Holidays Act 1993.'. _______________ s. 14 -- 11 of 15 -- Act No. 79/2001 State Taxation Legislation (Amendment) Act 2001 10 PART 4—TAXATION ADMINISTRATION ACT 1997 15. New section 49A inserted After section 49 of the Taxation Administration Act 1997 insert— "49A. Order for tax agent to account for tax (1) If an agent of the Commissioner does not account to the Commissioner for any tax collected by the agent on the Commissioner's behalf, the Commissioner may apply to the Supreme Court for an order under this section. (2) An application must be accompanied by an affidavit in support. (3) On the application of the Commissioner, the Supreme Court may order that an agent show cause— (a) why the agent should not deliver to the Commissioner an account on oath of all tax received by the agent; and (b) why that tax should not be paid to the Commissioner forthwith. (4) The Supreme Court may make the order absolute and enforce by attachment or otherwise the payment of any such tax that appears to be payable and the costs of the proceeding. (5) In this section, a reference to an agent includes a reference to the executor or administrator of an agent.". 16. Failure to comply with Commissioner's notice See: Act No. 40/1997. Reprint No. 2 as at 13 September 2001. LawToday: www.dms. dpc.vic. gov.au s. 15 s. 16 -- 12 of 15 -- Act No. 79/2001 State Taxation Legislation (Amendment) Act 2001 11 In section 73 of the Taxation Administration Act 1997, after sub-section (9) insert— "(10) A person cannot be charged with an offence against sub-section (8) in respect of a failure to comply with a requirement of a notice if the Commissioner has certified the failure to the Supreme Court under section 73A, unless the Supreme Court declines to inquire into the matter.". 17. New section 73A inserted After section 73 of the Taxation Administration Act 1997 insert— "73A. Powers of Supreme Court if non- compliance with section 73 (1) If the Commissioner is satisfied that a person has, without reasonable excuse, failed to comply with a requirement of a notice under section 73, the Commissioner may certify the failure to the Supreme Court. (2) If the Commissioner so certifies, the Supreme Court may inquire into the case and may order the person to comply with the requirement within the period specified by the Court. (3) The Commissioner cannot certify a failure to the Supreme Court under this section if the person to whom the failure relates has been charged with an offence against section 73(8) in respect of the failure. (4) A person who, without reasonable excuse, fails to comply with an order under sub- section (2) is guilty of an offence and liable -- 13 of 15 -- Act No. 79/2001 State Taxation Legislation (Amendment) Act 2001 12 to a term of imprisonment not exceeding 3 months. (5) Nothing in sub-section (4) affects the power of the Supreme Court to deal with a person for contempt of that court, but a person is not liable to be punished more than once for failing to comply with an order under sub- section (2).". ═══════════════ s. 17 -- 14 of 15 -- Act No. 79/2001 State Taxation Legislation (Amendment) Act 2001 13 ENDNOTES † Minister's second reading speech— Legislative Assembly: 11 October 2001 Legislative Council: 7 November 2001 The long title for the Bill for this Act was "to amend the Duties Act 2000, the Land Tax Act 1958 and the Taxation Administration Act 1997 and for other purposes." Endnotes -- 15 of 15 --