Extensions of Time to Pay Duty

Revenue Ruling
Public Ruling

Ruling Number:	PUB-DT-2005-5
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, PUB-DT-2002-11 & PUB-DT-2004-1
Date of Ruling:	18/11/2005
Attachments:

This ruling replaces PUB-DT-2002-10, PUB-DT-2002-11 and PUB-DT-2004-1.

Preamble

Section 6(1)(b) of the Duties Act 2001 (the Act) imposes duty on certain transactions including an agreement for the sale (agreement) 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 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 (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 land 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.
(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.
(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.
(4)	Where an agreement for sale of land in Tasmania contains a clause providing for completion (the completion clause) within a specified period after the issue of a Certificate of Title by the Recorder of Titles;

Such agreements are not required to be lodged with the Commissioner or endorsed on Tasmanian Revenue Online (TRO) until 3 months after either: -

whichever occurs first.

When such agreements are lodged with the Commissioner, they are to be accompanied by evidence that indicates the date on which the condition precedent or completion provision was satisfied.

Where endorsed by way of self-assessment on TRO, relevant evidence of the date upon which the condition precedent or completion provision was satisfied must be retained, together with any other evidence requirements set out in the TRO Duty Instruments Manual and/or online help.

Note, if an agreement is dependant on the satisfaction of a condition precedent or a completion provision (mentioned in this Ruling) contained in another (second) agreement, the condition precedent or the completion provision of the agreement will not be taken to have been satisfied until such time as the condition precedent or completion provision in the second agreement is satisfied.

Any other request to extend the time for payment of duty (or a request to pay duty by installments) on an agreement 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 dutyhelp@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-2005-5.

Peter Coe

Commissioner of State Revenue