Partnerships: duty requirements

If you acquire an interest in a partnership (either by formation of a partnership or by an increase in your interest in a partnership) and the partnership directly or indirectly holds any dutiable partnership property (as defined in section 70 of the Duties Act 2008), provide:

1. the transaction record (such as an agreement to transfer) or transfer duty statement
2. a completed Foreign Transfer Duty Declaration Form
3. a copy of any partnership agreement (or stamped copy if executed prior to 1 July 2008)
4. complete financial statements for the partnership as at the date of the partnership acquisition or as at 30 June nearest that date
5. complete financial statements for the linked entity as at the date of disposition or as at 30 June nearest that date if the partnership’s assets include an interest in any one of the following linked entities that is
   • a listed corporation or a listed unit trust scheme in which the partnership has at least 90% interest
   • any other entity in which the partnership has at least 50%, including an unlisted corporation, an unlisted unit trust scheme, a partnership or a trustee of a discretionary trust. and the linked entity is entitled to any dutiable partnership property in Western Australia
6. details of the percentage of the capital of the partnership that each partner has contributed, or is obliged to contribute, and the percentage of the losses of the partnership that each partner is required to bear
7. full details of how the consideration for the acquisition of the partnership interest was calculated
8. the amount of any liabilities assumed under the acquisition
9. the amount of any debt released or extinguished under the acquisition
10. when a partnership acquisition results from the formation of a partnership – details, including the considered market value, of any dutiable partnership property in Western Australia that each partner contributed to the partnership on its formation
11. details, including the considered market value, of all chattels owned by the partnership or a linked entity
12. completed duties valuation forms for all land owned by the partnership or a linked entity, or that has been contributed to the partnership. 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’
13. if the partnership has a leasehold interest in land only, provide
    • a copy of the lease agreement
    • advice whether a premium was paid for the grant or transfer of the lease (provide a copy of the endorsed lease agreement if yes)
    • confirmation whether the tenant has the right to remove any tenant’s fixtures under the terms of the lease
    • advice whether the partnership holds any plant, equipment or other items affixed to the tenanted location
    • a depreciation schedule or fixed asset register showing depreciated book value of the plant, equipment or other items in the tenanted location at the date of the transaction or at 30 June nearest that date
14. any other relevant information that may assist in the assessment of duty.

When a person ceases to be a partner in a partnership (either by retirement from the partnership or because the partnership is dissolved) and land in WA or other property held by the partnership is transferred or agreed to be transferred to, or retained by, the person, provide:

1. the transaction record (such as a transfer or agreement to transfer)
2. a completed Foreign Transfer Duty Declaration Form
3. a copy of any partnership agreement (or stamped copy if executed prior to 1 July 2008)
4. complete financial statements for the partnership as at the date of dissolution/ retirement or 30 June nearest that date
5. details of the percentage of the capital of the partnership that each partner has contributed, or is obliged to contribute, and the percentage of the losses of the partnership that each partner is required to bear
6. details, including the considered market value, of any partnership chattels being transferred to the person
7. completed duties valuation forms for the partnership land being transferred to the partner. 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’
8. any other relevant information that may assist in the assessment of duty.

If no written transaction record exists, or there is a deemed transfer as a result of property being retained, provide a transfer duty statement.

Forms

• Duties valuation forms
• FDA18 ‘Transfer Duty Statement’
• FDA41 ‘Foreign Transfer Duty Declaration’

Publications

• Commissioner’s Practice DA 1 ‘Dutiable Value of a Partnership Acquisition’
• Revenue Ruling DA 20 ‘Partnership Acquisitions: When a Partnership Holds Land’
• Fact Sheet ‘Partnership Acquisitions’
• Fact Sheet ‘Foreign Transfer Duty'