Land Tax - properties owned under different companies (NSW)

Hi all,

I cannot find any concrete answers anywhere and I hope you could assist.

I understand that a company receives the land tax threshold. However, I have heard that if the same shareholder owns several properties each under a separate entity, the property values are combined and you pay the land tax as if the shareholder owned all the properties. Is this correct, or does each company receives the threshold regardless of whether the shareholder is the same?

Another example, albiet a bit more complicated example is as follows:

Say Company A, Company B, Company C and Company D each own properties separately. Say the 100% shareholder of each of these companies is called 'Holding Company Z'. The shareholder of Holding Company Z is a trust (with a corporate trustee) and the shareholder of the corporate trustee is say an individual person. Would each of the above Companies above being Company A, Company B, Company C & Company D still receive the threshold?

I have asked an accountant and lawyer and cannot get concrete answers.

I would appreciate any advice and/or answers to the above.

Thanks everyone.

 

I have written on this in the forum before.
see s29 of the land tax management act NSW - related companies can be treated as one for land tax purposes.

 

This is not correct. A shareholder owns shares in a company and the company would own the land. Where related companies own other land and there is a common shareholder the companies may be restricted to one land tax threshold between them. The companies pay the land tax not the shareholders.

 

Thank you Terry for your reply.

Does the OSR recognise this automatically and then hit each company with the land tax or is it some sort of disclosure that you need to tell the OSR?

Thanks again.

 

It may not be picked up so you should disclose.

 

The NSW LTMA is written in a way that imposes liability. Get advice so liability is avoided.....your case needs advice