sec.173Value of land-holdings and property—business property disregarded

### sec.173 Value of land-holdings and property—business property disregarded For an acquisition of an interest in an entity that is a dutiable transaction to which chapter 2 , part 10 , applies, business property taken to have no value under the part must be disregarded in working out the unencumbered value of the land-holdings or property of the entity. For subsection (1) , a repealed s 97 (1) (f) transaction is taken to be a dutiable transaction to which chapter 2 , part 10 , applies. A repealed s 97(1)(f) transaction is a transfer, or agreement for the transfer, of a marketable security in a corporation to which the following applies— the property of the corporation includes business property; the corporation is a family company for the transferee; the transferor or person directing the transfer is— if the business property is used to carry on a business of primary production—a defined relative of the transferee; or otherwise—an ancestor of the transferee; the transferee does not acquire the marketable security as— trustee, other than as trustee of a trust for the beneficiaries mentioned in subsection (4) ; or agent or nominee of another person; the business for which the business property is used is carried on by the defined relative or ancestor whether alone or with others; the business is intended to be carried on by the transferee, whether alone or with others. For subsection (3) (d) (i) — the beneficiary of the trust is a minor, and— if the business property is used to carry on a business of primary production—the minor is a defined relative of the person creating the trust; or otherwise—the minor is a descendant of the person creating the trust; and there are no other beneficiaries of the trust, other than a person who would become a beneficiary of the trust on the death of the beneficiary mentioned in paragraph (a) . In this section— family company , for a person, means an exempt proprietary company at least 50% of the value of the shares of which are owned by members of the person’s family. s 173 amd 2006 No. 44 s 40 ; 2011 No. 20 s 85 ; 2014 No. 35 s 11 (sec.173-ssec.1) For an acquisition of an interest in an entity that is a dutiable transaction to which chapter 2 , part 10 , applies, business property taken to have no value under the part must be disregarded in working out the unencumbered value of the land-holdings or property of the entity. (sec.173-ssec.2) For subsection (1) , a repealed s 97 (1) (f) transaction is taken to be a dutiable transaction to which chapter 2 , part 10 , applies. (sec.173-ssec.3) A repealed s 97(1)(f) transaction is a transfer, or agreement for the transfer, of a marketable security in a corporation to which the following applies— the property of the corporation includes business property; the corporation is a family company for the transferee; the transferor or person directing the transfer is— if the business property is used to carry on a business of primary production—a defined relative of the transferee; or otherwise—an ancestor of the transferee; the transferee does not acquire the marketable security as— trustee, other than as trustee of a trust for the beneficiaries mentioned in subsection (4) ; or agent or nominee of another person; the business for which the business property is used is carried on by the defined relative or ancestor whether alone or with others; the business is intended to be carried on by the transferee, whether alone or with others. (sec.173-ssec.4) For subsection (3) (d) (i) — the beneficiary of the trust is a minor, and— if the business property is used to carry on a business of primary production—the minor is a defined relative of the person creating the trust; or otherwise—the minor is a descendant of the person creating the trust; and there are no other beneficiaries of the trust, other than a person who would become a beneficiary of the trust on the death of the beneficiary mentioned in paragraph (a) . (sec.173-ssec.5) In this section— family company , for a person, means an exempt proprietary company at least 50% of the value of the shares of which are owned by members of the person’s family. - (a) the property of the corporation includes business property; - (b) the corporation is a family company for the transferee; - (c) the transferor or person directing the transfer is— (i) if the business property is used to carry on a business of primary production—a defined relative of the transferee; or (ii) otherwise—an ancestor of the transferee; - (i) if the business property is used to carry on a business of primary production—a defined relative of the transferee; or - (ii) otherwise—an ancestor of the transferee; - (d) the transferee does not acquire the marketable security as— (i) trustee, other than as trustee of a trust for the beneficiaries mentioned in subsection (4) ; or (ii) agent or nominee of another person; - (i) trustee, other than as trustee of a trust for the beneficiaries mentioned in subsection (4) ; or - (ii) agent or nominee of another person; - (e) the business for which the business property is used is carried on by the defined relative or ancestor whether alone or with others; - (f) the business is intended to be carried on by the transferee, whether alone or with others. - (i) if the business property is used to carry on a business of primary production—a defined relative of the transferee; or - (ii) otherwise—an ancestor of the transferee; - (i) trustee, other than as trustee of a trust for the beneficiaries mentioned in subsection (4) ; or - (ii) agent or nominee of another person; - (a) the beneficiary of the trust is a minor, and— (i) if the business property is used to carry on a business of primary production—the minor is a defined relative of the person creating the trust; or (ii) otherwise—the minor is a descendant of the person creating the trust; and - (i) if the business property is used to carry on a business of primary production—the minor is a defined relative of the person creating the trust; or - (ii) otherwise—the minor is a descendant of the person creating the trust; and - (b) there are no other beneficiaries of the trust, other than a person who would become a beneficiary of the trust on the death of the beneficiary mentioned in paragraph (a) . - (i) if the business property is used to carry on a business of primary production—the minor is a defined relative of the person creating the trust; or - (ii) otherwise—the minor is a descendant of the person creating the trust; and