State Taxation Legislation (Amendment) Act 2001 (Vic)

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

i

Section Page

73A.	Powers of Supreme Court if non-compliance with
section 73 11

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ENDNOTES 13

ii

Victoria

No. 79 of 2001

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

State Taxation Legislation (Amendment) Act 2001
Act No. 79/2001

This Act comes into operation on the day after the day on which it receives the Royal Assent.

_______________
State Taxation Legislation (Amendment) Act 2001

s. 3 Act No. 79/2001

PART 2—DUTIES ACT 2000

See:

Act No.	3. Definition
79/2000.
Reprint No. 1	In section 3(1) of the Duties Act 2000, in the
as at	definition of "collateral mortgage", for "advance"
15 July 2001
and	substitute "amount".
amending Act Nos 27/2001 and 48/2001. LawToday: dpc.vic. gov.au

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".

State Taxation Legislation (Amendment) Act 2001

Act No. 79/2001 s. 7

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—

State Taxation Legislation (Amendment) Act 2001

s. 10 Act No. 79/2001

(i) to the beneficiary absolutely; or

(ii) another trust ("the second trust")
of which all the beneficiaries are
natural persons who were
beneficiaries of the second trust

to the beneficiary as trustee of 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—

State Taxation Legislation (Amendment) Act 2001

Act No. 79/2001

(a)

in sub-clause (2), for "Subject to sub- "A mortgage";

(b) in sub-clause (4), for "sub-clause (2)" substitute "sub-clause (1)(b)".

_______________
State Taxation Legislation (Amendment) Act 2001

s. 12 Act No. 79/2001

PART 3—LAND TAX ACT 1958

See:

Act No.	12. Service of documents
6289/1958.
Reprint No. 10	In section 21 of the Land Tax Act 1958—
as at
14 October	(a) at the foot of sub-section (1) insert—
1999
and	"Note: For methods of service see section 74.".
amending
Act Nos	(b) in sub-sections (3) and (4) omit "by post".
69/2000, 10/2001, 27/2001, 29/2001, 44/2001, 46/2001 and
48/2001.
LawToday:
	dpc.vic. gov.au

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

State Taxation Legislation (Amendment) Act 2001

Act No. 79/2001 s. 14

(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 each member of the partnership, or on each member of the association or other body of persons.

committee of management of an
unincorporated association or other body of
persons, is taken, for the purposes of this

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—

State Taxation Legislation (Amendment) Act 2001

s. 14 Act No. 79/2001

(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.'.

_______________
State Taxation Legislation (Amendment) Act 2001

s. 15
s. 16

Act No. 79/2001

PART 4—TAXATION ADMINISTRATION ACT 1997

See:

15. New section 49A inserted Act No. 40/1997.

After section 49 of the Taxation Administration	Reprint No. 2
Act 1997 insert—	as at 13 September

"49A. Order for tax agent to account for tax 2001. LawToday:

(1) If an agent of the Commissioner does not	dpc.vic.
account to the Commissioner for any tax	gov.au
behalf, the Commissioner may apply to the
collected by the agent on the Commissioner's 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

State Taxation Legislation (Amendment) Act 2001

Act No. 79/2001

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

State Taxation Legislation (Amendment) Act 2001

Act No. 79/2001 s. 17

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).".

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State Taxation Legislation (Amendment) Act 2001

Endnotes Act No. 79/2001

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."