22What is the unencumbered value of dutiable property?

22 What is the unencumbered value of dutiable property? (1) The unencumbered value of dutiable property is the value of the property determined without regard to any encumbrance to which the property is subject. (2) If, before land is transferred to a transferee, the transferee has made improvements to the land, the unencumbered value of the land is to be determined as if those improvements had not been made. (3) The unencumbered value of a Crown lease at the time it is granted is, for this chapter, taken to be the amount determined by the granting body to be that value. (4) However, if the commissioner is not satisfied with the amount determined by the granting body of a Crown lease to be the unencumbered value of the lease, the commissioner may— (a) have the Crown lease valued as at the time it was granted; and (b) determine the unencumbered value of the lease in accordance with the valuation. (5) If the granting body of a Crown lease did not determine the value of the lease at the time it was granted, the commissioner may— (a) have the Crown lease valued as at the time it was granted; and (b) determine the unencumbered value of the lease in accordance with the valuation. (6) In determining the unencumbered value of a Crown lease at the time it is or was granted, the granting body or a person making a valuation of the lease under subsection (4) (a) or (5) (a) must assume— (a) that the consideration for the lease is or was to be paid as a lump sum; and (b) that the lessee is not obliged by the lease to carry out any works, or to cause any works to be carried out, on the land leased or elsewhere.

(7) The commissioner may recover from the lessee under a Crown lease— (a) the cost of getting a valuation under subsection (4) if the value of the Crown lease shown by the valuation was more than the value of the lease determined by the granting authority; or (b) the cost of getting a valuation under subsection (5). (8) In this section: grant, of a Crown lease over a parcel of land, includes the grant of a second or subsequent lease over the same parcel. granting body, in relation to a Crown lease, means the administrative unit or other entity responsible for arranging the grant.