16EReassessment of land tax if trust is not foreign trust

16E Reassessment of land tax if trust is not foreign trust

[Section 16E of Part 2 Inserted by No. 16 of 2022, s. 8, Applied:01 Jul 2022]

(1)  For the purposes of determining whether foreign investor land tax is payable in respect of land for a financial year, a trust is not a foreign trust for the financial year if –

(a) at the commencement of the financial year, the trust was a foreign trust; and

(b) under the terms of the trust deed, a trustee of the trust has a power or discretion as to the distribution of the capital of the trust estate to a person or a member of a class of persons; and

(c) the trust deed for the trust is amended no later than 6 months after the date on which the notice of assessment, for land tax that includes an amount for foreign investor land tax, has been issued, under the Taxation Administration Act 1997 , in respect of the land for the financial year; and

(d) as a result of the amendment to the trust deed, the trust is not a foreign trust.

(2)  If –

(a) a trust is not a foreign trust in respect of a financial year by virtue of subsection (1) ; and

(b) foreign investor land tax was payable in respect of the land held by a trustee on behalf of the trust in the financial year –

the trustee may apply to the Commissioner, in writing, to reassess the foreign investor land tax payable in respect of the land for the financial year.

(3)  If the Commissioner receives an application under subsection (2) for the reassessment of the foreign investor land tax payable in respect of the land held by a trustee on behalf of the trust for a financial year, the Commissioner must –

(a) reassess the foreign investor land tax payable for the financial year as if, at the commencement of the financial year, the trust was not a foreign trust; and

(b) refund any amount of foreign investor land tax, paid in respect of the land for the financial year, that is in excess of the amount of foreign investor land tax so reassessed.