If two or more transactions are entered into by the same or related parties, we determine whether they form, evidence, give effect to or arise from what is part of substantially one arrangement before issuing an assessment.
Transactions considered substantially one arrangement will be treated as a single transaction. Their dutiable value will be aggregated into a single amount for the purposes of assessing the duty liability. This generally results in a greater amount of duty payable.
A transaction involving only chattels is dutiable if it is determined to form, evidence, give effect to or arise from what is substantially one arrangement together with a transaction or relevant acquisition in a landholder.
See information about what is substantially one arrangement for landholder duty purposes.
Revenue Ruling DA 14 ‘Aggregation of Dutiable Transactions’ provides information about the factors that will be considered when determining whether two or more transactions should be aggregated.
What to provide
Show moreIf two or more transactions are entered into by the same or related parties, provide:
- the transaction records (such as the transfer or agreement to transfer)
- a completed Foreign Transfer Duty Declaration Form for each transaction
- a written statement advising that either:
- you believe the transactions form, evidence, give effect to or arise from what is substantially one arrangement and should be assessed at the aggregate dutiable value or
- you believe the transactions do not form, evidence, give effect to or arise from what is substantially one arrangement and should not be assessed at the aggregate dutiable value.
- If you believe the transactions do not form substantially one arrangement, your written statement must include detailed answers to the following questions:
- why were multiple items of property purchased?
- why were separate instruments prepared for each item of property?
- to what extent are the transactions conditional upon each other?
- what are the items of property, e.g. land or business assets?
- is there an inherent connection between the items of property, e.g., the acquisition of a business and the freehold land on which the business is conducted?
- if all items of property are land – are the land items adjoining or in close proximity to each other?
- if the purchaser(s) were not able to purchase one (or more) of the items of property, would they have proceeded to purchase the others?
- if the vendor(s) were not able to sell one (or more) of the items of property, would they have proceeded to sell the others?
- was the purchase of all items of property negotiated for a single price that was apportioned between the instruments or were separate negotiations conducted for the sale of each item?
- was a discount given for the purchase of multiple items of property?
- is there any relationship between the purchaser(s) and vendor(s), e.g., by blood or marriage, business or legal (either currently or by prior arrangement), common directors or shareholders, etc.?
- at the date of execution of each agreement, how did the purchaser(s) intend to use each item of property?
- were the items of property advertised or offered for sale as a total package or as separate items?
- who negotiated the sale on behalf of:
- the vendor(s)?
- the purchaser(s)?
- will the purchaser(s) finance the transactions by way of:
- cash?
- vendor finance?
- a single loan from a financial institution which will cover all items of property? If so, why a single loan rather than individual loans?
- individual loans from a financial institution for each item?
- documents showing how the items of property were marketed for sale, e.g., newspaper or internet advertisements, brochures, etc.
- any other relevant information that may assist in the assessment of duty.
An assessment of duty will not be issued until all required information is provided.