Determining the consideration for a dutiable transaction is essential when calculating duty, however, this can be a complex task if taxpayers need to factor in contingent consideration, non-monetary consideration and the assumption of liabilities. Given there have been a number of recent developments impacting consideration, this session will:
- Provide a background overview of the key authorities on consideration including Dick Smith, Lend Lease and Melton Highway
- Evaluate the recent High Court decision in PepsiCo and the Supreme Court of Victoria decision in Alphington Developments in respect of consideration
- Discuss the implications of an assumption of liabilities on consideration, including the impact of the recent Victorian draft ruling DA-070 – Consideration – Assumption of tax liabilities
- Consider non-monetary consideration, including the obligation to construct improvements under Victoria’s sub-sale rules
- Review perspectives on contingent consideration, including views contained in:
- NSW Revenue Ruling DUT033v2
- Consideration – WA Duties Fact Sheet
- Contingent Consideration
- Queensland Supreme Court decision of Resolute Mining.