Published on 01 Aug 11
by "THE TAX SPECIALIST" JOURNAL ARTICLE
The recent High Court decision in Commissioner of State Taxation v Cyril Henschke Pty Ltd focuses attention on the complex and varied interactions between dealings in partnerships, partnership interests and stamp duty. In this article, the author uses the Henschke decision, in the context of previous case law, to examine the Australian jurisprudence as to the nature of a partnership interest at general law and the general law consequences of certain dealings in partnership interests.
The article then compares and contrasts how dealings in partnership interests are treated under the stamp duty laws of each state and territory. Finally, the article considers how partnerships and partnership interests interact with the landholder, land rich and trust acquisition provisions of each state and territory. It becomes clear that the stamp duty consequences of dealings in partnership interests are complex and vary greatly between jurisdictions, requiring specialist advice to ensure that the duty implications are properly understood by taxpayers.
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