ft_v16.htm  

The objective was to reduce and simplify interjurisdictional differences which add to compliance costs for business.

The end result is that the Tasmanian Stamp Duties Act 1931 has been replaced by the Duties Act 2001 and this has resulted in changes to the way in which stamp duty is applied to various contracts and transactions etc.

In the case of a temporary transfer of a fishing licence for instance under the old Act it would cost $20 per transfer document.

The new Act however requires that full stamp duty is paid up front (as if it were a permanent transfer) and then a refund of the duty can be claimed, less $20 per transfer, at the end of the short term arrangement.

The difficulties with this new requirement are fairly obvious so a new administration procedure has been negotiated and developed for the new Act in order to simplify the process at no increased net cost to the contract transferees.

The State Department of Treasury & Finance has now released a Public Guideline through the State Revenue Office in relation to the processing of duty payable on the temporary transfer of fishing licences.

Their statement in full follows for your general information –

Processing Duty Payable on Temporary Transfer of Fishing Licences

"A temporary transfer of a fishing licence approved by the Department of Primary Industry, Water and Environment is a dutiable transaction pursuant to Chapter 2 of the Duties Act 2001 and normally liable to full ad valorem duty being paid on the transaction.

Given that a transfer in such circumstances amounts to a transfer to a trustee with the licence eventually being transferred back to the original holder at the expiration of the temporary transfer period, section 40 the Duties Act 2001 provides for a refund of duty paid on the initial transfer and the imposition of $20 duty on the original transfer and the transfer back at the conclusion of the transaction.

The requirement to pay duty up front in such circumstances is an anti-avoidance measure, with the section being designed to ensure that duty is collected up front in cases where the transfer back to the original holder does not occur.

A temporary transfer in the circumstances as required by Department of Primary Industry, Water and Environment was not envisaged when the legislation was enacted

Accordingly, where such a temporary transfer occurs the Commissioner of State Revenue will –

• Issue an interim assessment pursuant to Section 31 of the Duties Act 2001 in the sum of $20;

• stamp the document evidencing the temporary transfer for $20 and defer final assessment until the transfer back date

PROVIDED
• that a copy of the letter approving the temporary transfer issued by the Department of Primary Industry Water and Environment is provided to the State Revenue Office at the time of the lodgement of the temporary transfer document; and

• the temporary transfer document or letter of approval from the Department of Primary Industry Water and Environment notes the anticipated transfer back date.

The taxpayer will be required to re-lodge the temporary document together with a document evidencing the transfer back with the State Revenue Office within 60 days of the transfer back date. At the time, the Commissioner of State Revenue will re-assess the temporary transfer in accordance with Section 40 of the Duties Act 2001.

Audit activity will be undertaken by the State Revenue Office periodically to ensure that the transfer back to the original licence holder has occurred."

Any enquiries can be directed to TFIC or the State Revenue Office on ph 03 6233 6670, fax 03 6234 3357 or by email to audithelp@treasury.tas.gov.au