- thefirstbruceMember@thefirstbruceJoin Date: 2003Post Count: 133
I recall sometime ago a commercial developer used a tactic to avoid stamp duty when buying a property, by buying the vendor’s shelf company specifically set up to acquire the property.
The new owner of the shelf company then became the legal owner of the property.
Is anyone else aware of pitfalls of this strategy?gmh454Member@gmh454Join Date: 2003Post Count: 537
If you are buying a company you still need to get the share transfer stamped. Believe that the Stamping office has the option of picking a higher rate if the company’s main asset is property.
If a developer has a trick it is not as simple as this.TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
I asked a good account (Dale GG) about this a few years ago, and he said this still wouldn’t get around avoiding stamp duty. He didn’t really elaborate, so I am not sure on the details.
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[email protected]AdministratorKeymaster@piadminJoin Date: 2013Post Count: 3,225
Possibly the details are not as portrayed.
What kind of property was involved ?(i.e. vacant land ? An existing property ? )
Was it the vendor’s shelf company or perhaps the developer’s shelf company that was involved in the transaction ?
Was the property owned by the shelf company or did the company merely hold an option on the land ?
Pisces133melbearMember@melbearJoin Date: 2003Post Count: 2,429
I think that it ‘used to’ work, but now if more than 50% of the company’s shares are transferred you pay stamp duty on the value of all assets.
I think Somersoft forum has discussed this a few times.
MelthefirstbruceMember@thefirstbruceJoin Date: 2003Post Count: 133
I believe the property was a going concern of 30 townhouses under dev’t in Brisbane that the vendor wanted to get out of a third of the way through due to delays and cash flow problems. A third of the townhouses had already been completed and sold off. It was the vendor’s shelf company that was sold to the buyer.