Business property: duty requirements

If the transaction involves a business asset and the principal place of business or head office is in WA, provide:

1. the transaction record (such as an agreement to transfer)
2. the total purchase consideration for the assets, including cash, assumption of liabilities, allotment or issue of shares, or any other consideration in kind, including any consideration payable contingently
3. allocation of the total purchase consideration to the various assets, such as goodwill, land, plant and equipment, business licences, intellectual property, stock-in-trade, etc.
4. the unencumbered market value of the assets where this differs from the amounts shown at (3)
5. the transaction record for another transaction that together with this one, forms, evidences, gives effect to, or arises from, substantially one arrangement
6. if the transaction involves plant and equipment without any other dutiable property - the information set out in Chattels, plant, equipment
7. if the business supplies commodities or services outside of WA:
   • the basis on which goodwill was apportioned between each state and overseas
   • the gross amount (in Australian dollars) for all commodities supplied, and services provided, by the business in the last three completed financial years before the transaction to customers:
     • in Western Australia
     • elsewhere in Australia
     • overseas
8. any other relevant information that may assist in the assessment of duty.

In addition, if the only property being transferred is intellectual property such as patents, trademarks, copyright, etc., or if the parties 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 business for the three years ending at the date of the transaction or at the 30 June closest to that date
2. evidence showing how the parties arrived at the values of the assets
3. copies of any independent valuations for any of the assets
4. completed duties valuation forms for all land owned by the business. Duties valuation forms are not required if a valuation is obtained from a qualified valuer which meets the criteria specified in Commissioner’s Practice TAA 23 ‘Circumstances when a Taxpayer will be Required to Provide a Written Valuation’
5. if the assets include a business licence under the Liquor Licensing Act 1988 – detailed bar trading accounts for the three years ending at the date of the transaction or at 30 June closest to that date.

If the transaction involves a business asset and neither the principal place of business nor the head office is in WA, provide:

1. the transaction record (such as an agreement to transfer)
2. the total purchase consideration for the assets, including cash, assumption of liabilities, allotment or issue of shares, or any other consideration in kind, including any consideration payable contingently
3. separate allocation of the total purchase consideration to the various assets in each state and overseas, i.e., goodwill, land, plant and equipment, intellectual property, business licences, stock -in-trade, etc.
4. the unencumbered market value of the assets where this differs from the amounts shown at (3)
5. the basis on which goodwill was apportioned between each state and overseas
6. the locations of the principal place of business and the head office of the business
7. the gross amount (in Australian dollars) for all the commodities supplied and services provided by the business in the last three completed financial years before the transaction to customers:
   • in Western Australia
   • elsewhere in Australia
   • overseas
8. the transaction record for another transaction that together with this acquisition forms, evidences, gives effect to, or arises from, substantially one arrangement
9. if the transaction involves plant and equipment without any other dutiable property - the information set out in Chattels, plant, equipment
10. any other relevant information that may assist in the assessment of duty.

In addition, if the only property being transferred is intellectual property such as patents, trademarks, copyright, etc., or if the parties 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 business for the three years ending at the date of the transaction or at the 30 June closest to that date
2. evidence showing how the parties arrived at the values of the assets
3. copies of any independent valuations for any of the assets
4. completed duties valuation forms for all land owned by the business. Duties valuation forms are not required if a valuation is obtained from a qualified valuer which meets the criteria specified in Commissioner’s Practice TAA 23 ‘Circumstances when a Taxpayer will be Required to Provide a Written Valuation’
5. if the assets include a business licence under the Liquor Licensing Act 1988 – detailed bar trading accounts for the three years ending at the date of the transaction or at 30 June closest to that date.

Forms

• FDA3 ‘Concessional Rate for Certain Residential or Business Property’
• FDA18 ‘Transfer Duty Statement’
• Duties valuation forms

Publications

• Revenue Ruling DA 14 ‘Aggregation of Dutiable Transactions’
• Commissioner’s Practice DA 35 ‘Duties – Transfers of Western Australian Business Assets’
• Commissioner’s Practice TAA 22 ‘Valuation of WA Business Assets for Duties Purposes’
• Commissioner’s Practice TAA 28 ‘Valuation of Shares Issued as Consideration for a Dutiable Transaction’
• Fact Sheet ‘Business Acquisitions’
• Fact Sheet ‘Business Licences