Federal Register of Legislation - Australian Government

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Act No. 148 of 1986 as made
An Act relating to the imposition of a tax on the registration of certain transfers of marketable securities
Administered by: DOTARS
Date of Assent 11 Dec 1986
Date of repeal 15 Mar 2007
Repealed by Repealed by Act No. 8 of 2007

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Australian Capital Territory Tax (Transfers of Marketable Securities) Act 1986

No. 148 of 1986

 

An Act relating to the imposition of a tax on the registration of certain transfers of marketable securities

[Assented to 11 December 1986]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

Short title

1. This Act may be cited as the Australian Capital Territory Tax (Transfers of Marketable Securities) Act 1986.

Commencement

2. This Act shall be deemed to have come into operation at 5 o’clock in the afternoon, by standard time in the Territory, on 10 June 1986.

Incorporation

3. The Australian Capital Territory Taxation (Administration) Act 1969 is incorporated and shall be read as one with this Act.


 

Imposition of tax

4. Tax is imposed on the registration, by a company incorporated in the Territory, of a transfer of a marketable security where—

(a) the transfer was effected by an instrument of transfer that appears to have been executed by the transferor, or by any of the transferors, after the commencement of this Act (including an instrument that appears to have been executed by the transferee, or by any of the transferees, before the commencement of this Act); and

(b) immediately before the date on which the instrument was executed, within the meaning of the Australian Capital Territory Taxation (Administration) Act 1969, the marketable security was registered in a register kept outside the Territory by the company.

Rate of tax

5. The rate of tax is 15 cents for every $25, and for any fractional part of $25, of the unencumbered value of the marketable security.

Exemptions

6. (1) Tax is not imposed on the registration of—

(a) a transfer of a marketable security that is a transfer of a kind prescribed for the purposes of this paragraph;

(b) a transfer of a marketable security where the instrument of transfer effecting the transfer bears statements made in respect of the sale and of the purchase of the marketable security to which the instrument of transfer relates under the Australian Capital Territory Taxation (Administration) Act 1969 or under a law of a State or another Territory relating to the imposition of stamp duty on transfers of marketable securities to the effect that stamp duty, if payable, has been or will be paid;

(c) a transfer of a marketable security where an exemption from stamp duty for the instrument of transfer effecting the transfer is provided by the Bankruptcy Act 1966;

(d) a transfer of a marketable security issued by a municipal council or other local governing body or by a public authority constituted under a law of the Commonwealth or of a State or Territory;

(e) a transfer of a marketable security to, or to trustees upon trust for, a public hospital, public benevolent institution, religious institution or public educational institution;

(f) a transfer of a marketable security held on trust, where the transfer—

(i) is made in consequence of the appointment or retirement of a trustee of the trust or other change in trustees of the trust, in order to vest the marketable security in the trustees of the trust who are for the time being entitled to hold it; and

(ii) is not made in connection with a tax avoidance scheme;


(g) a transfer of a marketable security from an executor of a deceased person’s will or administrator of a deceased person’s estate to another executor of that will or administrator of that estate;

(h) a transfer of a marketable security to a beneficiary entitled to it under a will or to a person entitled to it under an intestacy;

(j) a transfer of a marketable security from a trustee to a person who contributed the purchase money for the transfer by which the trustee acquired the marketable security, where the first-mentioned transfer is not made in connection with a tax avoidance scheme and—

(i) any tax under this Act on the registration of, or stamp duty under an Act or under a law of a State or another Territory on or in respect of, the transfer by which the trustee acquired the marketable security has been paid;

(ii) the instrument of transfer by which the trustee acquired the marketable security bears statements made in respect of the sale and of the purchase of the marketable security to which the instrument of transfer relates under the Australian Capital Territory Taxation (Administration) Act 1969 or under a law of a State or another Territory relating to the imposition of stamp duty on transfers of marketable securities to the effect that stamp duty, if payable, has been or will be paid;

(iii) no tax was payable under this Act on the registration of, and no stamp duty under an Act or under a law of a State or another Territory was payable on or in respect of, the transfer by which the trustee acquired the marketable security; or

(iv) the trustee so acquired the marketable security upon its first issue;

(k) a transfer of a marketable security to a trustee to be held solely as trustee of the transferor without change in beneficial ownership, and a transfer by way of re-transfer to the transferor, where, in each case, the transfer is not made in connection with a tax avoidance scheme;

(m) a transfer of a marketable security made solely for the purpose of—

(i) qualifying the transferee as the director of a company to act and vote, as directed, on behalf of another company; or

(ii) re-transferring the marketable security from that director to the other company,

being another company that—

(iii) controls the appointment or removal of all or a majority of the board of directors of that first-mentioned company;

(iv) controls more than one-half of the voting power in that first-mentioned company; or


(v) beneficially owns more than one-half of the paid-up capital of that first-mentioned company;

(n) a transfer of a marketable security made solely for the purpose of rectifying a clerical error in an instrument of transfer;

(p) a transfer of a marketable security made solely by way of security or by way of re-transfer to a person from another person who held the marketable security by way of security;

(q) a transfer of a marketable security by a broker to a person (not being a broker) who had, for the purpose of enabling the broker to fulfil a contract to sell marketable securities in the ordinary course of business as a broker, transferred a marketable security of the same description to the broker pursuant to an undertaking by the broker, in consideration of that transfer to the broker, subsequently to transfer a marketable security of the same description to that person; or

(r) a transfer of a marketable security to—

(i) a member of a diplomatic mission in Australia of the government of another country that does not impose stamp duty or any similar tax on or in respect of transfers of marketable securities or that grants in relation to Australia an exemption from any such stamp duty or similar tax corresponding to this exemption; or

(ii) a member of his or her family forming part of his or her household,

being a person who is not an Australian citizen and is not ordinarily resident in Australia.

(2) In this section, “tax avoidance scheme” means a scheme where the person who has, or one or more of the persons who have, entered into or carried out the scheme or a part of the scheme, did so for the purpose of securing—

(a) that an amount of tax under this Act would not be payable by a person, being an amount that would have been, or might reasonably be expected to have been, payable by the person; or

(b) that an amount of tax under this Act payable by a person would be less than the amount that would have been, or might reasonably be expected to have been, payable by the person,

if the scheme had not been entered into or carried out, or for purposes of which that purpose was the dominant purpose.

Regulations

7. (1) The Governor-General may make regulations for the purposes of paragraph 6 (1) (a).

(2) Section 48 of the Acts Interpretation Act 1901 applies in relation to regulations made under sub-section (1) of this section as if a reference in paragraph 48 (1) (b) of that Act to a date specified in the regulations included a reference to a time specified in the regulations.


[Minister’s second reading speech made in—

House of Representatives on 15 October 1986

Senate on 13 November 1986]