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Corporate reconstructions and consolidations

The information within this guide is of a general nature and aims to centralise key information on corporate reconstructions and consolidations and provides industry professionals the legislative and operational requirements under the Duties Act 1997.

It is recommended that the guide is read in its entirety and in conjunction with part 1 of chapter 11 of the Duties Act 1997.

Contact us if you require further information or to discuss specific transactions.

Chapters

  1. Overview
  2. What is a corporate group?
  3. Reduction in duty for corporate reconstructions
  4. Reduction in duty for corporate consolidations
  5. Applications for reduction in duty
  6. Lodgement and payment of duty
  7. Definitions

5. Applications for reduction in duty

Under section 273F of the Duties Act 1997, applications for the reduction in duty for corporate reconstructions or corporate consolidations must be made to the Chief Commissioner:

  • in the approved form, and
  • before the date of the transaction or no later than 5 years after the date of assessment of the transaction.

A reduction in duty may be granted with or without conditions.

It is a condition of every reduction in duty granted in relation to an application made before the date of the relevant transaction that the applicant must notify the Chief Commissioner in writing as soon as practicable if there is any material change on or before that date in the matters disclosed in the application.

The Chief Commissioner may revoke a reduction in duty for a corporate reconstruction transaction if he is satisfied, because of new information not disclosed in the application for reduction in duty, that the reduction in duty should not have been granted.

If a reduction in duty for a corporate reconstruction transaction is revoked each member of the corporate group (at the date of the transaction) to which the transaction relates is jointly and severally liable to pay the additional duty chargeable on the transaction.