Business licences: duty requirements

If your transaction involves a business licence, provide:

1. the transaction record (such as an agreement to transfer) or transfer duty statement effecting or evidencing the transaction
2. the application to the relevant statutory authority relating to the transfer or issue of the business licence
3. if the transaction is pursuant to a lease or agreement to lease – a copy of that document
4. if the business licence is to be held for a limited period of time only – full details as to the circumstances
5. if the business licence is to be held for security purposes only – full details as to the circumstances
6. evidence showing the amount of any liabilities assumed under the transaction
7. evidence showing the amount of any debt released or extinguished under the transaction
8. if the business licence has been issued under a law of the Commonwealth – evidence showing the portion of the consideration for the transaction that relates to carrying out activities in Western Australia under the business licence
9. if the business licence is an authorisation or entitlement under the Fish Resources Management Act 1994, and it is contended that the transaction has not, and will not, result in the passing of a beneficial interest in the business licence:
   • the agreement for the transfer of the units or a completed transfer duty statement under the Fish Resources Management Act 1994 and
   • a completed Department of Fisheries T -1 or T-2 application form (whichever is applicable)
10. any other relevant information that may assist in the assessment of duty.

In addition, if the parties to the transaction are:

• related by blood, marriage, co-ownership or prior business relationship
• related corporations as defined in the Corporations Act 2001
• partners in a partnership
• participants in the same joint venture
• trustees of trusts which have common beneficiaries
• joint owners of property
• not at arms’ length by any other circumstances

provide:

1. complete financial statements for the entity that owns the business licence for the three years prior to the date of the transaction, including bar trading accounts in the case of a licence under the Liquor Licensing Act 1988
2. evidence showing the considered value of the business licence and the method of valuation used (or, in the case of a business licence issued under a law of the Commonwealth, the value so far as it authorises the carrying out of an activity in Western Australia).

An assessment of duty will not be issued until all required information is provided.