32JHow duty is charged on transfer

32J How duty is charged on transfer (1) Duty on a transfer to which this Division applies is not charged in respect of the transfer from the vendor to the transferee, but is charged separately and distinctly on— (a) the dutiable value of the sale contract as if it had been completed by the first purchaser; and S. 32J(1)(b) substituted by No. 84/2008 s. 5(2). (b) the dutiable value of the subsequent transaction by which the final subsequent purchaser obtained the transfer right; and S. 32J(1)(c) inserted by No. 84/2008 s. 5(2). (3) Despite subsection (1), duty is not charged under this Division on the dutiable value of a sale contract if— (a) the consideration given or agreed to be given by the first purchaser under the sale contract included consideration for the land development; or S. 32J(3)(b) amended by No. 84/2008 s. 5(3)(a). (b) the land development did not occur until after a subsequent transaction occurred; or S. 32J(3)(c) inserted by No. 84/2008 s. 5(3)(b). (c) duty is charged on the sale contract under Division 2. (4) Subsection (3)(a) does not apply if the first purchaser or an associate of the first purchaser undertook or participated in the land development at any time before a subsequent transaction occurred. S. 32J(5) amended by No. 84/2008 s. 5(4)(a). (5) Despite subsection (1), duty is not charged under this Division on the dutiable value of a subsequent transaction referred to in subsection (1)(c) if— (a) the consideration given or agreed to be given by the subsequent purchaser or an associate of the subsequent purchaser in order for the subsequent purchaser to obtain a transfer right under the transaction included consideration for the land development; or S. 32J(5)(b) substituted by No. 84/2008 s. 5(4)(b), amended by No. 28/2017 s. 27(1)(a). (b) the land development did not occur before the subsequent purchaser obtained a transfer right. S. 32J(5)(c) inserted by No. 84/2008 s. 5(4)(b), repealed by No. 28/2017 s. 27(1)(b). S. 32J(6) inserted by No. 84/2008 s. 5(5). (6) Subsection (5)(a) does not apply if the subsequent purchaser who is the transferor of the transfer right or an associate of that subsequent purchaser undertook or participated in the land development at any time before the next subsequent purchaser held a transfer right. S. 32J(7) inserted by No. 28/2017 s. 27(2). (7) Despite subsection (1), duty is not charged under this Division on the dutiable value of a subsequent transaction referred to in subsection (1)(b) or (c) (as the case requires) if duty is charged on the subsequent transaction under Division 2. S. 32J(8) inserted by No. 28/2017 s. 27(2). (8) Despite subsection (1), duty is not charged under subsection (1)(a) or (c) (as the case requires) on an initial transaction— (a) if a person obtains a transfer right under a latter transaction that is greater than a transfer right the person obtained under the initial transaction—to the extent of the transfer right obtained by the person under the initial transaction; and (b) if a person obtains a transfer right under a latter transaction that is less than a transfer right the person obtained under the initial transaction—to the extent of the transfer right obtained by the person under the latter transaction. 1 Persons A and B enter into a sale contract for dutiable property (the ***initial transaction***) and each obtain a transfer right to a 50% interest in the property. Under a subsequent transaction immediately following the sale contract (a ***latter transaction***), person A obtains a transfer right in respect of a 100% interest in the property. Duty is not charged under subsection (1)(a) in respect of the sale contract to the extent of the transfer right obtained by person A under the initial transaction (50%). 2 Persons C and D enter into a subsequent transaction in relation to dutiable property (the ***initial transaction***) and each obtain a transfer right to a 50% interest in the property. Under a further subsequent transaction immediately following the initial transaction (a ***latter transaction***), person C obtains a transfer right in respect of a 75% interest in the property and person D obtains a transfer right in respect of a 25% interest in the property. Duty is not charged under subsection (1)(c) in respect of the initial transaction to the extent of— • the transfer right obtained by person C under the initial transaction (50%); and • the transfer right obtained by person D under the latter transaction (25%). S. 32J(9) inserted by No. 28/2017 s. 27(2). (9) In subsection (8)— ***initial transaction*** means the sale contract or a subsequent transaction; S. 32K inserted by No. 36/2005 s. 10.