Extensions Of Time To Pay Duty

Revenue Ruling
Public Ruling

Ruling Number:	PUB-DT-2004-1
Title:	Extensions Of Time To Pay Duty
Tax Line:	Duties
Legislative Reference:	Duties Act 2001 Taxation Administration Act 1997
Previous Ruling:	PUB-DT-2002-10 and PUB-DT-2002-11
Date of Ruling:	11/02/2004
Attachments:

This ruling replaces PUB-DT-2002-10 and PUB-DT-2002-11 issued on 1 October 2002.

Preamble

Section 6(1)(b) of the Duties Act 2001 (the Act) provides that Chapter 2 of the Act imposes duty on certain transactions including an agreement for the sale or transfer of dutiable property, whether conditional or not.

Section 10 of the Act provides that a liability for duty arises when a transfer of dutiable property occurs. For the purposes of charging duty, section 7 of the Act deems an agreement for sale or transfer to be a transfer of dutiable property at the date the agreement is entered into.

Section 15 of the Act provides that duty must be paid within 3 months after the liability to pay the duty arises.

Accordingly, this will require a taxpayer who has entered into an agreement for sale (whether that agreement is conditional or not) to pay duty within 3 months of the date of execution of the said agreement.

Section 59(1) of the Taxation Administration Act 1997 ("the TAA") allows the Commissioner of State Revenue ("the Commissioner") to extend the time for payment of tax by a taxpayer.

Ruling

Extensions of time to pay duty are automatically granted in the following cases: -
(1) Where an agreement for sale of dutiable property in Tasmania contains a condition precedent which makes the agreement conditional upon the entering into by the purchaser of an agreement for sale of other dutiable property owned by the purchaser, the agreement for sale is not required to be lodged with the Commissioner until -

the said condition precedent has been satisfied;
on the assignment of the whole or any part of the purchaser's interest under the agreement; or
on the expiration of 12 months after the date of the agreement;

whichever first occurs.

(2) Where an agreement for sale of land in Tasmania contains a condition precedent which makes the agreement conditional upon the issue of a Certificate of Title by the Recorder of Titles, the agreement is not required to be lodged with the Commissioner until -

the said condition precedent has been satisfied;
on the assignment of the whole or any part of the purchaser's interest under the agreement; or
on the expiration of 12 months after the date of the agreement;

whichever first occurs.

(3) Where an agreement for sale of land in Tasmania contains a condition precedent which makes the agreement conditional upon obtaining approval from the relevant municipal council, the agreement is not required to be lodged with the Commissioner until -

the said condition precedent has been satisfied;
on the assignment of the whole or any part of the purchaser's interest under the agreement; or
on the expiration of 12 months after the date of the agreement;

whichever first occurs.

When such an agreement for sale is lodged with the Commissioner, it is to be accompanied by evidence which indicates the date on which the condition precedent was satisfied.

Where such an agreement for sale is to be stamped by way of self-assessment utilising Tasmanian Revenue Online ("TRO"), relevant evidence of the date upon which the condition precedent was satisfied must be retained together with any other evidence requirements set out in the TRO Duty Instruments Manual and/or online help.

For the purposes of section 59(1) of the TAA, the time for payment of the duty will be three months from -

the date upon which the condition precedent is satisfied;
the assignment of the whole or any part of the purchaser's interest under the agreement; or
the expiration of 12 months after the date of the agreement;

whichever first occurs.

Any other request to extend the time for payment of duty (or a request to pay duty by instalments) on an agreement for the sale or transfer of land in Tasmania will be considered on a case by case basis pursuant to Section 59 of the TAA.

Enquiries in relation to this Revenue Ruling should be directed to the Revenue Advice and Audit Section on telephone 03 6233 6670 or e-mail at audithelp@treasury.tas.gov.au. Copies of this ruling may be obtained from our Web site at www.sro.tas.gov.au and follow the "Revenue Rulings" link.

All rulings must be read subject to Revenue Ruling PUB-GEN-2001-1.

Peter Coe
Commissioner of State Revenue