---
title: "Gift Duty Assessment Act 1941"
slug: "gift-duty-assessment-act-1941"
jurisdiction: "Commonwealth of Australia"
jurisdiction_code: "commonwealth"
collection: "act"
status: "repealed"
act_number: "52 of 1941"
version_date: "2026-03-30"
register_id: "commonwealth-C1941A00052-current"
canonical_url: "https://zoelaw.ai/legislation/gift-duty-assessment-act-1941"
date_modified: "2026-03-30"
source: Zoe (https://zoelaw.ai)
---

# Gift Duty Assessment Act 1941

## Part I Preliminary

## Part I—Preliminary

## 1 Short title [see Note 1]

##### 1 Short title \[see Note 1\]

  This Act may be cited as the Gift Duty Assessment Act 1941.

## 2 Commencement

##### 2 Commencement

  This Act shall be deemed to have come into operation on 29 October 1941.

## 4 Interpretation

##### 4 Interpretation

  (1) In this Act, unless the contrary intention appears:

> adopted child, in relation to a person, means a person adopted by the first‑mentioned person:

(a) under the law of a State or Territory relating to the adoption of children; or

(b) under the law of any other place relating to the adoption of children, if the validity of the adoption would be recognized under the law of any State or Territory.

> child, in relation to a person, includes an adopted child, a step‑child or an ex‑nuptial child of that person.

> Commissioner means the Commissioner of Taxation.

> Deputy Commissioner means a Deputy Commissioner of Taxation.

> disposition of property means any conveyance, transfer, assignment, settlement, delivery, payment or other alienation of property and, without limiting the generality of the foregoing, includes:

(a) the allotment of shares in a company;

(b) the creation of a trust in property;

(c) the grant or creation of any lease, mortgage, charge, servitude, licence, power, partnership or interest in property;

(d) the release, discharge, surrender, forfeiture or abandonment, at law or in equity, of any debt, contract or chose in action, or of any interest in property;

(e) the exercise of a general power of appointment of property in favour of any person other than the donee of the power; and

(f) any transaction entered into by any person with intent thereby to diminish, directly or indirectly, the value of his own property and to increase the value of the property of any other person.

> donee means any person who acquires any interest in property under a gift, and, where a gift is made to a trustee for the benefit of another person, includes both the trustee and beneficiary.

> donor means any person who makes a gift.

> Federal Court means the Federal Court of Australia.

> gift means any disposition of property which is made otherwise than by will (whether with or without an instrument in writing), without consideration in money or money’s worth passing from the disponee to the disponor, or with such consideration so passing if the consideration is not, or, in the opinion of the Commissioner, is not, fully adequate.

> gift duty means the gift duty assessed under this Act.

> grandchild, in relation to a person, means a person who is the child of a child of that person.

> grandparent, in relation to a person, means a person of whom that person is the grandchild.

> interest in property means any estate, interest, right or power whatsoever, whether at law or in equity, in or over any property.

> member of the family, in relation to a person, means the spouse, a child, a grandchild, a parent or a grandparent of that person.

> objector means a person who has duly lodged, or is to be treated as having duly lodged, under section 31, an objection against an assessment.

> parent, in relation to a person, means a person of whom that person is the child.

> person includes all bodies or associations, whether corporate or unincorporate.

> property includes real property and personal property and every interest in real property or personal property.

> Second Commissioner means a Second Commissioner of Taxation.

> this Act includes Part IVC of the Taxation Administration Act 1953, insofar as that Part relates to this Act.

> Tribunal means the Administrative Appeals Tribunal.

  (2) For the purposes of paragraph (d) of the definition of disposition of property in subsection (1), a debt or interest in property shall be deemed to have been released or surrendered when it has become irrecoverable or unenforceable by action or other process through lapse of time, but if the amount of any such debt or interest so released or surrendered is subsequently liquidated in whole or in part by the debtor to the creditor, the amount of such liquidation payment shall not for any purposes of this Act be deemed to be a disposition of property or a gift.

## Part II Administration

## Part II—Administration

## 5 Administration

##### 5 Administration

  The Commissioner shall have the general administration of this Act.

## 9 Annual report

##### 9 Annual report

  (1) The Commissioner shall, as soon as practicable after 30 June in each year, prepare and furnish to the Minister a report on the working of this Act, including any breaches or evasions of this Act of which the Commissioner has notice.
  (2) The Minister shall cause a copy of a report furnished to him under subsection (1) to be laid before each House of the Parliament within 15 sitting days of that House after the day on which he receives the report.
  (3) For the purposes of section 34C of the Acts Interpretation Act 1901, a report that is required by subsection (1) to be furnished as soon as practicable after 30 June in a year shall be taken to be a periodic report relating to the working of this Act during the year ending on that 30 June.

## 10 Officers to observe secrecy

##### 10 Officers to observe secrecy

  (1) For the purposes of this section, officer means a person who is or has been appointed or employed by the Commonwealth, and who by reason of that appointment or employment, or in the course of that employment, may acquire or has acquired information respecting the affairs of any other person, disclosed or obtained under the provisions of this Act.
  (1A) For the purposes of this section, a person who, although not appointed or employed by the Commonwealth, performs services for the Commonwealth shall be taken to be employed by the Commonwealth.
  (2) Subject to this section, an officer shall not either directly or indirectly, except in the performance of any duty as an officer, and either while he is, or after he ceases to be an officer, make a record of, or divulge or communicate to any person, any information respecting the affairs of another person acquired by the officer as mentioned in subsection (1).
  (3) An officer shall not be required to produce in court any return, assessment or notice of assessment, or to divulge or communicate to any court any matter or thing coming under his notice in the performance of his duties as an officer, except when it is necessary to do so for the purpose of carrying into effect the provisions of this Act.
  (4) Nothing in this section shall prevent the Commissioner, a Second Commissioner or a Deputy Commissioner, or any person thereto authorized in writing by the Commissioner, a Second Commissioner or a Deputy Commissioner, from communicating any information to:

(a) any person performing, in pursuance of any appointment or employment by the Commonwealth or by a State, any duty arising under any Act administered by the Commissioner, for the purpose of enabling that person to carry out any such duty; and

(b) the Tribunal in connection with proceedings under an Act of which the Commissioner has the general administration; and

(ca) the authority administering any law of a foreign country relating to gift duty, if that authority is authorized by law to afford similar information to the Commissioner; and

(d) the Secretary to the Department of Social Security or the Repatriation Commission for the purpose of the administration of any law of the Commonwealth relating to pensions; and

(e) the Chief Executive Officer or an employee of the Commonwealth Services Delivery Agency for the purpose of the administration of any law of the Commonwealth relating to pensions.

  (5) Any person to whom information is communicated under subsection (4), and any person or employee under his control, shall, in respect of that information, be subject to the same rights, privileges, obligations and liabilities, under subsections (2) and (3) as if he were an officer.
  (6) Any officer shall, if and when required by the Commissioner, a Second Commissioner or a Deputy Commissioner so to do, make an oath or declaration in the manner and form prescribed, to maintain secrecy in conformity with the provisions of this section.

Penalty: $10,000 or imprisonment for 2 years, or both.

## Part III Liability to Gift Duty

## Part III—Liability to Gift Duty

## 11 Liability to pay gift duty

##### 11 Liability to pay gift duty

  Subject to this Act, gift duty at rates declared by the Parliament, shall be levied and paid in respect of every gift made on or after 29 October 1941 and before 1 July 1979:

(a) by a person (not being a body corporate) who is domiciled in Australia, or by a body corporate which is incorporated under the law of any State or Territory which is part of the Commonwealth—of any property wherever situated; or

(b) by any other person—of any property which is situated in Australia at the time when the gift is made.

## 12 When gift deemed to be made

##### 12 When gift deemed to be made

  (1) A disposition of property made or taking effect in pursuance of or in performance or satisfaction, whether wholly or in part, of a contract or agreement entered into (whether before or after the commencement of this Act and whether with or without an instrument in writing) without adequate consideration in money or money’s worth, shall, for the purposes of this Act, be deemed to be a gift so soon and so far as the disposition has affected the property or any of the property to which the contract or agreement relates.
  (2) For the purposes of this Act, a gift shall be deemed to be made after the commencement of this Act when the disposition of property comprised in the gift is made or takes effect after the commencement of this Act, notwithstanding that a contract or agreement or instrument of title which relates to the property or any part thereof was made or executed before the commencement of this Act.
  (3) When any gift is made in respect of property comprised in any instrument of gift requiring registration under any law (whether in Australia or elsewhere) and the instrument is not lodged for registration until after the commencement of this Act, the gift shall, for the purposes of this Act, be deemed to have been made after the commencement of this Act notwithstanding that the instrument may have been stamped in accordance with any law relating to stamp duties prior to the commencement of this Act.
  Provided that this subsection shall not operate to make subject to gift duty any gift of property where the Commissioner is satisfied that the donor had, prior to the commencement of this Act, done everything which it was necessary and possible for him to do to divest himself of the property.
  (4) Nothing in the foregoing provisions of this section shall be construed as limiting the meaning of the expression gift which is made after the commencement of this Act, or any other like expression, in any case where the gift is in fact made after the commencement of this Act.

## 13 Where property deemed to be situated

##### 13 Where property deemed to be situated

  For the purposes of this Act:

(a) property at sea in the course of transit to Australia, whether directly or indirectly, shall be deemed to be situated in Australia;

(b) the local situation of a debt payable under a bond, debenture or other deed shall in no case be determined by reference to the local situation of the bond, debenture or deed;

(c) a debt owing by a corporation, wherever incorporated, shall be deemed to be property situated in Australia if the debt was incurred or is payable in Australia, and the corporation has any office or place of business in Australia;

(d) a debt owing by any person or persons other than a corporation shall be deemed to be property situated in Australia if the debtor or any of the debtors is resident in Australia;

(e) a debt owing by the Commonwealth or any State (including any debentures, Treasury bills or any other form of Government stock or securities) shall be deemed to be property situated in Australia if it is incurred or payable in Australia;

(f) notwithstanding anything contained in paragraphs (a), (b), (c), (d) and (e):

(i) a debt represented by an instrument which is negotiable in Australia shall be deemed to be property situated in the country in which the instrument is situated; and

(ii) a debt which is secured by mortgage, charge, lien or otherwise on any property situated or deemed to be situated in Australia shall itself be deemed to be property situated in Australia:

Provided that if the value of the security is less than the value of the debt, the debt shall not, by reason of the existence of that security, be deemed to be situated in Australia except to the extent of the value of the security;

(g) shares in a company incorporated under the law of the Commonwealth, of any State or of any Territory which is part of the Commonwealth shall be deemed to be property situated in Australia whether such shares are recorded in a register kept in Australia or elsewhere; and

(h) shares in a company incorporated under the law of any country outside Australia shall be deemed to be property situated outside Australia except in the case of shares registered in a branch register of the company in Australia.

## 14 Exemptions

##### 14 Exemptions

  (1) Notwithstanding anything contained in this Act, gift duty shall not be payable in respect of:

(a) contributions by an employer as or to a fund for the purpose of providing retiring allowances, pensions or other personal benefits for his employees, or any class or classes of his employees, or their dependants;

(b) payments made by an employer (or by the trustee of a fund established by an employer for the purpose of making payments of the nature referred to in this paragraph) to an employee, or the dependants of an employee, in consequence of the retirement of that employee from the service of the employer or in consequence of his death, or any gratuity or bonus paid by an employer to an employee during the continuance of the employment if the Commissioner is satisfied that the gratuity or bonus is paid in recognition of special or faithful services rendered, or any salary, wages or allowances which the employer continues to pay during any period of illness or invalidity of the employee;

(c) any moneys paid by an employer to an employee who is a member of the Defence Force or of the naval, military or air force of any other part of His Majesty’s dominions, for the purpose of augmenting the employee’s pay as a member of any of those forces;

(d) any gift to, or wholly for the benefit of, an institution, organization or body of persons, whether corporate or unincorporate, not formed or carried on for the profit of any individuals;

(e) any gift to the Commonwealth or a State;

(f) any gift which is made in the course of carrying on a business, for the purpose of obtaining any commercial benefit or by way of the writing off of a debt which is irrecoverable, by:

(i) an incorporated company the shares or stock of which are or is quoted in the official list of any Stock Exchange;

(ii) an incorporated company the shares or stock of which are not or is not quoted in the official list of any Stock Exchange, if the Commissioner is satisfied that the donee is not a director of the company or is not connected by ties of blood or marriage with any director of the company; or

(iii) a firm or individual if the Commissioner is satisfied that the donee is not connected by ties of blood or marriage with any member of the firm or with the individual, as the case may be;

(g) any gift by a person to, or wholly for the benefit of a member or members of the family of the person;

(h) any gift made in accordance with the terms of an agreement whereby a person carrying on a business, trade or calling has undertaken to pay part of the proceeds of his business, trade or calling to the trustees of a fund out of which payments may be made by the trustees to persons carrying on a similar business, trade or calling who are on war service; or

(j) any gift concerning which the Commissioner is satisfied:

(i) that the gift, together with all other gifts made by the same donor to the same donee, whether at the same time or within 18 months previously (whether wholly or partly made before the commencement of this Act or not) or 18 months subsequently does not exceed in the aggregate $100 in value and that the gift is made in good faith as part of the normal expenditure of the donor; or

(ii) that the gift is made for or towards the maintenance, education or apprenticeship of any person, and is not excessive in amount, having regard to the legal and moral obligations of the donor to afford the maintenance, education or apprenticeship.

  (2) A gift by a person to or for the benefit of:

(a) a member or members of the family of the person; and

(b) a person or persons other than a member of the family of the first‑mentioned person;

  shall, to the extent that it is a gift to, or for the benefit of, the member or members of the family of the first‑mentioned person, be deemed, for the purposes of paragraph (1)(g), to be a gift to, or wholly for the benefit of, that member or those members of the family.

## 15 Gifts made by certain persons connected with undertakings of the United States Government

##### 15 Gifts made by certain persons connected with undertakings of the United States Government

  (1) In this section, unless the contrary intention appears:

> approved project means the establishment, maintenance or operation of the North West Cape naval communication station or of the Joint Defence Space Research Facility.

> Australia includes the Territories.

> civilian accompanying the United States Forces means a person (not being a member of the United States Forces, an Australian citizen or a person ordinarily resident in Australia) who:

(a) is an employee:

(i) of the United States Forces; or

(ii) of, or of a body conducting, a club or other facility established for the benefit or welfare of members of the United States Forces or of persons accompanying those Forces and which is recognized by the Government of the United States of America as a non‑appropriated fund activity; or

(b) is serving with an organization that, with the approval of the Australian Government, accompanies the United States Forces in Australia.

> dependant, in relation to a person, means:

(a) the spouse of that person; or

(b) a relative, other than the spouse, of that person who is wholly or partly dependent for support on that person;

  but, in the case of a person who, immediately before becoming such a spouse or relative, was ordinarily resident in Australia, does not include that person so long as that person continues to be ordinarily resident in Australia.

> foreign contractor means a person who is a party to a prescribed contract and is not:

(a) a company incorporated in Australia;

(b) an Australian citizen; or

(c) a person, other than a company, who is ordinarily resident in Australia.

> foreign employee means a person who:

(a) is an employee of a foreign contractor; or

(b) is a director of a company that is a foreign contractor;

  and is not an Australian citizen or ordinarily resident in Australia.

> Joint Defence Space Research Facility means the undertaking the establishment of which is provided for by an agreement dated 9 December 1966 between the Government of Australia and the Government of the United States of America.

> North West Cape naval communication station means the naval communication station the establishment of which is provided for by the agreement approved by the United States Naval Communication Station Agreement Act 1963.

> personal property does not include:

(a) property held as, or for the purpose of, an investment;

(b) copyright;

(c) property arising out of the grant of letters patent for an invention, or the registration of a trade mark or an industrial design; or

(d) property held in connexion with the carrying on of a business other than a business carried on for prescribed purposes.

> prescribed contract means:

(a) a contract to which the Government of the United States of America is a party in connexion with an approved project; or

(b) a contract made for purposes connected with the performance of a contract referred to in paragraph (a).

> prescribed purposes means:

(a) in relation to a foreign contractor or foreign employee—purposes relating to the performance of a prescribed contract;

(aa) in relation to a United States employee—purposes relating to an approved project; and

(b) in relation to a member of the United States Forces or a civilian accompanying the United States Forces—purposes relating to the carrying on of activities agreed upon between the Australian Government and the Government of the United States of America.

> United States employee means a person who is employed by the Government of the United States of America and is not:

(a) a member of the United States Forces;

(b) a civilian accompanying the United States Forces;

(c) an Australian citizen; or

(d) a person ordinarily resident in Australia.

> United States Forces means the armed forces of the Government of the United States of America.

  (2) For the purposes of this section, a foreign contractor, foreign employee or United States employee who is in Australia, or is carrying on business in Australia, solely for prescribed purposes does not cease to be in Australia solely for those purposes, or to be carrying on business in Australia solely for those purposes, by reason of anything undertaken or done by him in connexion with an undertaking in Australia of the Government of the United States of America, other than an approved project, agreed upon between the Australian Government and the Government of the United States of America.
  (3) For the purposes of this Act, a person shall not be taken to have become domiciled in Australia at the commencement of, or during, any period in which that person was:

(a) a foreign contractor, a foreign employee, a member of the United States Forces, a civilian accompanying the United States Forces or a United States employee who was in Australia solely for prescribed purposes; or

(b) a dependant of such a contractor, employee, member or civilian;

  except, in the case of a woman, by reason of marriage to a man domiciled in Australia.
  (4) Subsection (3) does not apply in respect of, or of a part of, a period in which a person was, or was a dependant of, a foreign contractor, a foreign employee, a civilian accompanying the United States Forces or a United States employee if the person was not a citizen of, and was not domiciled in, the United States of America during that period or that part of that period, as the case may be.
  (5) Gift duty is not payable in respect of a gift made by a person of personal property that, at the time of the making of the gift, was held by him in Australia solely by reason of his having been, at that time:

(a) a foreign contractor, a foreign employee, a member of the United States Forces, a civilian accompanying the United States Forces or a United States employee who was in Australia solely for prescribed purposes; or

(b) a dependant of such a contractor, employee, member or civilian;

  if that gift is, or has been, subject to gift tax under the law of the United States of America.

## 16 Exempt gifts not to be taken into account in ascertaining duty on other gifts

##### 16 Exempt gifts not to be taken into account in ascertaining duty on other gifts

  Where, by virtue of section 14 or 15, gift duty is not payable in respect of a gift, the value of the gift shall not be taken into account in ascertaining whether gift duty is payable in respect of any other gift made by the same donor or in ascertaining the amount of any gift duty so payable.

## 17 Value of gift where consideration inadequate

##### 17 Value of gift where consideration inadequate

  Where any disposition of property is made and consideration in money or money’s worth passes from the disponee to the disponor but the disposition constitutes a gift for the purposes of this Act by reason of the consideration not being, or, in the opinion of the Commissioner, not being, fully adequate, the value of the gift shall, for the purposes of this Act, be the extent of that inadequacy.

## 18 Value of gift

##### 18 Value of gift

  (1) For the purpose of computing the value of a gift:

(a) no allowance shall be made in respect of any contingency affecting the interests of the donees or any of them;

(b) subject to this Act, the value of a gift shall be taken to be the value thereof at the time of the making of the gift; and

(c) no deduction shall be allowed in respect of any mortgage, charge, encumbrance or liability affecting or incident to the property comprised in the gift existing at the time of the making of the gift, if and so far as the donee is entitled as against the donor or any other person or as against any other property to any right of indemnity or contribution in respect of that mortgage, charge, encumbrance or liability.

  (2) Where the Commissioner is of the opinion that it is necessary that the following provisions should apply for the purpose of computing the value of a gift for the purposes of this Act, the following provisions shall apply:

(a) the value of shares or stock in any company, whether incorporated in Australia or elsewhere, shall be determined upon the assumption that, on the date when the gift was made, the memorandum and articles of association or rules of the company satisfied the requirements prescribed by the Committee or governing authority of the Stock Exchange at the place where the share or stock register is situate, for the purpose of enabling that company to be placed on the current official list of that Stock Exchange;

(b) no regard shall, in determining the value of any such shares or stock, be had to any provision in the memorandum or articles of association or rules of the company whereby or whereunder the value of the shares or stock of a deceased or other member is to be determined; and

(c) where a gift includes any shares or stock in any company the shares or stock of which are not or is not quoted in the official list of any Stock Exchange, the Commissioner may, in his discretion, notwithstanding anything contained in paragraphs (a) and (b), adopt as the value of any such shares or stock such sum as the holder thereof would receive in the event of the company being voluntarily wound up on the date when the gift was made.

  (3) The Tribunal or a court having jurisdiction to determine, for the purposes of this Act, the value of any shares or stock to which subsection (2) applies, may substitute its own opinion for, or use its own discretion in lieu of, any opinion or discretion of the Commissioner under that subsection.

## Part IV Returns and Assessments

## Part IV—Returns and Assessments

## 19 Returns by donor

##### 19 Returns by donor

  (1) Any person who makes, and any person who receives, any gift the value of which, together with the value of all other gifts made by the same donor to the same or any other donee whether at the same time or within the immediately preceding 18 months (whether wholly or partly made before the commencement of this Act or not) exceeds $7,500 shall:

(a) in the case of a gift made in Australia—within 1 month after making the gift; or

(b) in the case of a gift made out of Australia—within 3 months after making the gift;

  furnish to the Commissioner, in the prescribed form and in the prescribed manner, a return containing all such particulars with respect to the gift and:

(i) in the case of the donor—all other such gifts made by him; or

(ii) in the case of the donee—all other such gifts made to him by the donor;

  as are necessary to enable the Commissioner to determine whether the gift is liable to gift duty and to assess the gift duty (if any) thereon.
  (2) If any gift the particulars of which are contained in the return has been created, or is evidenced, by any written instrument, the person making the return shall furnish with the return a copy of that instrument.
  (3) Compliance by the donor with the provisions of this section shall release the donee from compliance therewith, but, in any proceeding against the donee, the onus of proving compliance by the donor shall be on the donee.
  (4) For the purposes of this section, gift shall not include any gift in respect of which gift duty is declared by section 14 or 15 not to be payable or any gift made on or after 1 July 1979.

## 20 Further returns

##### 20 Further returns

  Any person, whether a donor or donee or not, shall, if required by the Commissioner, furnish such returns or fuller or other returns for the purposes of this Act as the Commissioner requires.

## 21 Assessments

##### 21 Assessments

  From the returns, and from any other information in his possession, or from any one or more of these sources, the Commissioner shall make an assessment of the amount of the gift duty payable in respect of any gift.

## 22 Amendment of assessments

##### 22 Amendment of assessments

  (1) The Commissioner may at any time amend any assessment by making such alterations therein or additions thereto as he thinks necessary, and any such amended assessment shall be an assessment for the purposes of this Act.
  (2) Where, by reason of an amendment of an assessment, a person’s liability to gift duty is reduced:

(a) the amount by which the gift duty is so reduced shall be taken, for the purposes of section 27, never to have been payable; and

(b) the Commissioner shall:

(i) refund the amount of any gift duty overpaid; or

(ii) apply the amount of any gift duty overpaid against any liability of the person to the Commonwealth, being a liability arising under, or by virtue of, an Act of which the Commissioner has the general administration, and refund any part of the amount not so applied.

  (3) In this section, unless the contrary intention appears, gift duty includes additional gift duty under section 27 or 42.

## 23 Default assessments

##### 23 Default assessments

  If any donor or donee makes default in furnishing any return, document or information, or the Commissioner is not satisfied with any return, document or information furnished, he may cause an assessment to be made of the amount on which, in his judgment, gift duty ought to be levied, and the donor and donee shall be liable to pay gift duty thereon, except so far as the amount is, on appeal, shown to be excessive.

## 24 Notice of assessment

##### 24 Notice of assessment

  As soon as conveniently may be after any assessment is made under section 21 or 23 the Commissioner shall serve notice thereof in writing, by post or otherwise, upon the donor.

## 24AA Objections

##### 24AA Objections

  A person required to pay gift duty who is dissatisfied with an assessment in relation to the person may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953.

## Part V Collection and Recovery of Gift Duty

## Part V—Collection and Recovery of Gift Duty

## 24A Interpretation

##### 24A Interpretation

  In this Part, unless the contrary intention appears, gift duty includes additional gift duty under section 42.

## 25 Liability for gift duty

##### 25 Liability for gift duty

  (1) Gift duty shall be due and payable on the making of the gift, or, where the gift duty becomes payable, or further gift duty becomes payable, by reason of the making of a subsequent gift, the gift duty or further gift duty, as the case may be, shall be due and payable upon the making of that subsequent gift.
  (1A) Additional gift duty under section 42 is due and payable on the date specified in the notice of assessment of the additional gift duty as the date on which the additional gift duty is due and payable.
  (2) Gift duty shall constitute a debt jointly and severally due by the donor and donee to the Commonwealth.
  (3) Gift duty shall also constitute a first charge on all property (other than money or negotiable instruments) comprised in the gift, but any such charge shall not affect the title of a bona fide purchaser for value without notice of the charge.
  (4) Where there is more than one donee under the same gift, each of them shall be liable only for the same proportion of the gift duty as the value of his interest bears to the total value of the gift.
  (5) Where the interest of a donee is a future interest, he shall not become personally liable until it becomes an interest in possession.
  (6) A trustee may raise such moneys as are necessary to pay gift duty by mortgage with or without power of sale of any property comprised in the gift held by him upon trust.
  (7) Where the donee is a trustee he shall not be personally liable for the payment of any gift duty in respect of any trust property unless the Commissioner, by notice in writing, advises him that gift duty is due and payable in respect of that trust property, and then only to the extent of the value of so much of that trust property as is held by him on the date upon which the notice is served upon him.
  (8) In subsections (2), (3), (4), (6) and (7), gift duty also includes additional gift duty under section 27.

## 26 Extension of time to pay and payment by instalments

##### 26 Extension of time to pay and payment by instalments

  The Commissioner may in any case grant such extension of time for payment, or permit payment to be made by such instalments and within such time as he considers the circumstances warrant.

## 27 Penalty for unpaid duty

##### 27 Penalty for unpaid duty

  (1) If any gift duty payable in respect of a gift remains unpaid after the expiration of the period of 30 days after service upon the donor of notice of the assessment made in respect of the gift, additional gift duty is due and payable by way of penalty by the person liable to pay the gift duty at the rate of 20% per annum on the amount unpaid, computed from the expiration of that period, or, where, under section 26, the Commissioner has granted an extension of time for payment of the gift duty or has permitted payment of the gift duty to be made by instalments, from such date as the Commissioner determines, not being a date prior to the thirtieth day after service of the notice of assessment upon the donor.
  (2) If any penalty duty remains unpaid after the time when it became due and payable or would, but for section 26, have become due and payable, additional gift duty is due and payable by way of penalty by the person liable to pay the penalty duty at the rate of 20% per annum on the amount unpaid, computed from that time, or, where, under section 26, the Commissioner has granted an extension of time for payment of the penalty duty or has permitted payment of the penalty duty to be made by instalments, from such date as the Commissioner determines, not being a date prior to the date on which the penalty duty was originally due and payable.
  (3) Where additional gift duty is payable by a person under this section in relation to an amount of gift duty and:

(a) the Commissioner is satisfied that:

(i) the circumstances that contributed to the delay in payment of the gift duty were not due to, or caused directly or indirectly by, an act or omission of the person; and

(ii) the person has taken reasonable action to mitigate, or mitigate the effects of, those circumstances;

(b) the Commissioner is satisfied that:

(i) the circumstances that contributed to the delay in payment of the gift duty were due to, or caused directly or indirectly by, an act or omission of the person;

(ii) the person has taken reasonable action to mitigate, or mitigate the effects of, those circumstances; and

(iii) having regard to the nature of those circumstances, it would be fair and reasonable to remit the additional gift duty or part of the additional gift duty; or

(c) the Commissioner is satisfied that there are special circumstances by reason of which it would be fair and reasonable to remit the additional gift duty or part of the additional gift duty;

  the Commissioner may remit the additional gift duty or part of the additional gift duty.
  (4) Where judgment is given by, or entered in, a court for the payment of:

(a) an amount of gift duty; or

(b) an amount that includes an amount of gift duty;

  then:

(c) the gift duty shall not be taken, for the purposes of subsections (1) and (2), to have ceased to be due and payable by reason only of the giving or entering of the judgment; and

(d) if the judgment debt carries interest, the additional gift duty that would, but for this paragraph, be payable under this section in relation to the gift duty shall, by force of this paragraph, be reduced by:

(i) in a case to which paragraph (a) applies—the amount of the interest; or

(ii) in a case to which paragraph (b) applies—an amount that bears the same proportion to the amount of the interest as the amount of the gift duty bears to the amount of the judgment debt.

  (5) In subsections (3) and (4), unless the contrary intention appears, gift duty includes penalty duty.
  (6) In this section, penalty duty means additional gift duty under section 42.

## 28 Duty may be sued for

##### 28 Duty may be sued for

  (1) Any gift duty unpaid may be sued for and recovered in any Court of competent jurisdiction by the Commissioner, a Second Commissioner or a Deputy Commissioner suing in his official name.
  (2) In subsection (1), gift duty also includes additional gift duty under section 27.

## 29 Registration of duty as a charge

##### 29 Registration of duty as a charge

  (1) The Commissioner may register so much of any gift duty as relates to any real property comprised in a gift as a charge on that real property, after having certified in writing that there are arrears of duty payable, and the Registrar‑General or Registrar of Titles or other appropriate officer of a State or Territory may register the charge accordingly, and give effect to it as if the certificate were an instrument of charge or encumbrance duly executed under the laws in force in that State or Territory.
  (2) In subsection (1), gift duty also includes additional gift duty under section 27.

## 30 No limitation of action

##### 30 No limitation of action

  (1) No statute of limitation now or hereafter in force shall bar or affect any action, proceeding or remedy for recovery of gift duty.
  (2) In subsection (1), gift duty also includes additional gift duty under section 27.

## Part VII Miscellaneous

## Part VII—Miscellaneous

## 39 Department to obtain information and evidence

##### 39 Department to obtain information and evidence

  (1) The Commissioner may, by notice in writing, require any person, whether a donor or donee or not, including any officer employed in or in connexion with any Department of a Government or by any public authority:

(a) to furnish him with such information as he requires; or

(b) to attend and give evidence before him or before any officer authorized by him in that behalf concerning any matter on which the Commissioner requires information for the purposes of this Act, and may require him to produce all books, documents and other papers whatever in his custody or under his control relating thereto.

  (2) The Commissioner may require the information or evidence to be given on oath and either verbally or in writing, and for that purpose he or the officer so authorized by him may administer an oath.
  (3) The regulations may prescribe scales of expenses to be allowed to persons required under this section to attend.

## 40 Section 52A of Commonwealth Inscribed Stock Act not to apply

##### 40 Section 52A of Commonwealth Inscribed Stock Act not to apply

  The provisions of section 52A of the Commonwealth Inscribed Stock Act 1911 shall not apply to exempt from gift duty assessed under this Act the disposition of any property to which that section applies.

## 41 Rebate in case of double gift duty

##### 41 Rebate in case of double gift duty

  Where any disposition of property is subject to gift duty under this Act and also under the law of any country outside Australia, and the Commissioner is satisfied that the law of that country makes provision for the rebate of gift duty similar to the provision contained in this section, the Commissioner may allow a rebate of the gift duty payable under this Act of an amount equal to one‑half of the gift duty payable under this Act or under the law of that country, whichever is the lesser amount.

## 42 Penalty for failure to furnish return etc.

##### 42 Penalty for failure to furnish return etc.

  (1) Where a person refuses or fails to furnish, when and as required under or pursuant to this Act or the regulations to do so, a return, or any information, relating to a gift, the person is liable to pay, by way of penalty, additional gift duty equal to double the amount of gift duty payable by the person in respect of the gift.
  (2) Where:

(a) a person:

(i) makes a statement to a taxation officer, or to a person other than a taxation officer for a purpose in connection with the operation of this Act or the regulations, that is false or misleading in a material particular; or

(ii) omits from a statement made to a taxation officer, or to a person other than a taxation officer for a purpose in connection with the operation of this Act or the regulations, any matter or thing without which the statement is misleading in a material particular; and

(b) the gift duty properly payable by the person exceeds the gift duty that would have been payable by the person if it were assessed or determined on the basis that the statement were not false or misleading, as the case may be;

  the person is liable to pay, by way of penalty, additional gift duty equal to double the amount of the excess.
  (3) Where, but for this subsection, an amount of additional gift duty, being an amount less than $20, is payable by a person under this section in respect of an act or omission, then, by force of this subsection, the amount of the additional gift duty shall be taken to be $20.
  (4) The Commissioner shall make an assessment of the additional gift duty payable by a person under this section and shall, as soon as practicable after the assessment is made, serve notice of the assessment in writing, by post or otherwise, upon the person.
  (5) Nothing in this Act shall be taken to preclude notice of an assessment made in respect of a person under subsection (4) from being incorporated in notice of any other assessment made in respect of the person under this Act.
  (6) The Commissioner may, in the Commissioner’s discretion, remit the whole or any part of the additional gift duty payable by a person under this section, but, for the purposes of the application of subsection 33(1) of the Acts Interpretation Act 1901 to the power of remission conferred by this subsection, nothing in this Act shall be taken to preclude the exercise of the power at a time before an assessment is made under subsection (4) of the additional gift duty.
  (7) A reference in subsection (2) to a statement made to a taxation officer is a reference to a statement made to a taxation officer orally, in writing, in a data processing device or in any other form and, without limiting the generality of the foregoing, includes a statement:

(a) made in an application, certificate, declaration, notification, objection, return or other document made, given or furnished, or purporting to be made, given or furnished, under or pursuant to this Act or the regulations;

(b) made in answer to a question asked of a person under or pursuant to this Act or the regulations;

(c) made in any information furnished, or purporting to be furnished, under or pursuant to this Act or the regulations; or

(d) made in a document furnished to a taxation officer otherwise than under or pursuant to this Act or the regulations;

  but does not include a statement made in a document produced pursuant to paragraph 39(1)(b).
  (8) A reference in subsection (2) to a statement made to a person other than a taxation officer for a purpose in connection with the operation of this Act or the regulations is a reference to such a statement made orally, in writing, in a data processing device or in any other form and, without limiting the generality of the foregoing, includes such a statement:

(a) made in an application, certificate, declaration, notification or other document made, given or furnished to the person;

(b) made in answer to a question asked by the person; or

(c) made in any information furnished to the person.

  (9) In this section:

> data processing device means any article or material from which information is capable of being reproduced with or without the aid of any other article or device.

> taxation officer means a person exercising powers, or performing functions under, pursuant to or in relation to this Act or the regulations.

## 47 Regulations

##### 47 Regulations

  The Governor‑General may make regulations, not inconsistent with this Act, prescribing all matters which by this Act are required or permitted to be prescribed, or which are necessary or convenient to be prescribed, for giving effect to this Act, and, in particular, for prescribing penalties not exceeding a fine of $500 for offences against the regulations.