20Exemption: conveyances and transfers between group

20 Exemption: conveyances and transfers between group corporations (1) Subject to subsections (2) and (4): (a) duty is not payable on a conveyance of dutiable property, or a transfer of a motor vehicle certificate of registration, from one group corporation to another group corporation; and (b) duty mentioned in Division 8A is not payable in respect of a relevant acquisition if, and to the extent that, the relevant acquisition is the result of a conveyance of marketable securities from one group corporation to another group corporation.

Stamp Duty Act 1978 26 (2) Subsection (1) does not apply unless: (a) the conveyor or transferor did not hold, and the conveyee or transferee will not hold, the property as trustee; and (b) the conveyor and conveyee, or the transferor and transferee, of the property are group corporations in the same corporate group; and (c) the conveyance or transfer has not been made pursuant to an arrangement under which: (i) part or all of the consideration for the conveyance or transfer has or is to be provided or received, directly or indirectly, by a person who is not a group corporation in the same corporate group; or (ii) a group corporation in the same corporate group may provide any of the consideration for the conveyance or transfer other than in a manner specified in subsection (3); or (iii) a group corporation is required to dispose of any of the consideration through a payment or other disposition to: (A) a person other than a group corporation in the same corporate group; or (B) a person other than by way of loan on ordinary commercial terms; and (d) the property conveyed or transferred is, at the time of the conveyance or transfer, group property within the meaning of section 21. (3) For the purposes of subsection (2)(c)(ii), consideration for the conveyance or transfer may be provided: (a) by a financial institution by way of loan on ordinary commercial terms; or (b) by a group corporation in the same corporate group; or (c) under an offer and sale of shares to the public in the circumstances specified in section 23(4)(b). (4) Subsection (1) does not apply if: (a) the conveyance or transfer is a tax avoidance scheme, or part of a tax avoidance scheme; or

Stamp Duty Act 1978 27 (b) the Commissioner is of the opinion that the conveyance or transfer is a scheme, or part of a scheme, of which a purpose (collateral or otherwise) is to frustrate the recovery of duty, tax or royalty that is payable to the Territory.