| Revenue Ruling Public Ruling
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| Please note: This ruling has been replaced by ruling PUB-DT-2004-1 dated 11 February 2004 and therefore is no longer current. Preamble Section 6(1)(b) of the Duties Act 2001 (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 allows the Commissioner of State Revenue to extend the time for payment of tax by a taxpayer. Ruling Where an agreement for sale of residential 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 of State Revenue until the said condition precedent has been satisfied. When such an agreement for sale is lodged with the Commissioner of State Revenue, it is to be accompanied by evidence which indicates the date on which the condition precedent was satisfied. A copy of the agreement and the relevant Certificate of Title will be accepted as evidence. Where such an agreement for sale is to be stamped by way of self-assessment utilising Tasmanian Revenue Online ("TRO"), a copy of the agreement and a copy of the certificate of title showing the issue date 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 Taxation Administration Act 1997, the time for payment of the duty will be three months from the date upon which the condition precedent is satisfied. 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 Taxation Administration Act 1997. 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.treasury.tas.gov.au/tax 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 |
