Winding up a unit trust: duty requirements

For a transfer or an agreement to transfer property to the unit holders of a unit trust as a consequence of its winding up, provide:

1. the transaction record (such as a transfer or agreement to transfer)
2. a completed Foreign Transfer Duty Declaration Form or Foreign Landholder Duty Declaration Form
3. evidence of ownership such as an endorsed Offer & Acceptance
4. a statutory declaration by the trustee of the unit trust scheme including
   • confirmation that the unit trust scheme is being wound up
   • confirmation that the property is being transferred to the unit holders of the unit trust scheme in the course of its winding up
   • complete financial statements of the unit trust scheme
     • as at the date of the winding up
     • immediately following the date of winding up
     • as at the previous 30 June
   • details of the issued units of the unit trust scheme and a listing of the units held by each unit holder as at the date of winding up
   • details of the rights of each class of unit
   • details of any amounts owed to a unit holder that the unit holder has released the trustee of the unit trust scheme from paying during the period beginning 12 months before the winding up commenced and ending when the property is transferred
   • details of any liabilities that a unit holder has assumed or discharged on behalf of the trustee of the unit trust scheme during the period beginning 12 months before the winding up commenced and ending when the property is transferred
   • the date each unit holder acquired their individual units
   • confirmation that it is intended to distribute the assets of the unit trust scheme to the unit holders in accordance with their respective beneficial entitlements and details of how the distribution is to be made
   • if the property was previously owned by a unit trust scheme related to the unit trust scheme being wound up - confirmation of whether or not any unit holder held units in that related unit trust scheme
   • dates of acquisition of the property by the trustee of the unit trust scheme or a related unit trust scheme
   • details of any dealings in units of the unit trust scheme or a related unit trust scheme by a unit holder or previous owner of the property
   • reasons which demonstrate that any scheme or arrangement of transactions in relation to the winding up and involving any one or more of
     • the trustee of the unit trust scheme
     • a unit holder or
     • a related unit trust scheme
       is for reasons of commercial efficacy and not for the purpose of reducing the duty otherwise payable on the transfer or agreement for transfer
   • whether the transfer or agreement for transfer is pursuant to a right attaching to any of the units of the unit trust scheme to select or receive any particular property held by the trustee of the unit trust scheme as trustee of that trust
5. completed duties valuation forms for all land that is being distributed. 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’
6. any other relevant information that may assist in the assessment of duty.

When shares in a corporation or units in a unit trust scheme are transferred to unit holders and result in a relevant acquisition in a landholder, also provide the information set out in Landholder duty.

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