Stamp duty backflip costs millions
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Tuesday, 28 November, 2000 - 21:00
THE WA Government’s back-flip on its stamp duty on a phantom GST could cost them millions of dollars in lost earnings, according to the Property Council.
Since July 1, the State Revenue Department has overcharged property buyers about $500,000 which it now indicates it is willing to pay back.
After meeting with senior Treasury and State Revenue Department officers’, Property Council executive director Joe Lenzo said it was a victory for common sense and would save the WA property industry millions of dollars.
He said the State Revenue Department would no longer artificially inflate the sale price of a building by utilising a notional GST and then applying stamp duty as it had done since July 1. The Government also advised the Property Council they would pay back tax already paid by the property industry.
“Those purchasers who have already paid this stamp duty on a phantom tax since July 1 will be able to object to the payment of the stamp duty,” Mr Lenzo said.
The PCA anticipates that
an objection on the grounds that there should have been no stamp duty on an imputed GST component will also be successful.
A State Revenue Department spokesman declined to comment publicly on the issue but said a ruling would be issued by the SRD in the next week.
Since July 1, the State Revenue Department has overcharged property buyers about $500,000 which it now indicates it is willing to pay back.
After meeting with senior Treasury and State Revenue Department officers’, Property Council executive director Joe Lenzo said it was a victory for common sense and would save the WA property industry millions of dollars.
He said the State Revenue Department would no longer artificially inflate the sale price of a building by utilising a notional GST and then applying stamp duty as it had done since July 1. The Government also advised the Property Council they would pay back tax already paid by the property industry.
“Those purchasers who have already paid this stamp duty on a phantom tax since July 1 will be able to object to the payment of the stamp duty,” Mr Lenzo said.
The PCA anticipates that
an objection on the grounds that there should have been no stamp duty on an imputed GST component will also be successful.
A State Revenue Department spokesman declined to comment publicly on the issue but said a ruling would be issued by the SRD in the next week.