I am hoping someone can help shed some light on a land tax situation I am facing.
I just got off the phone to someone at the OSR (great fun). They were questioning a property I purchased last year.
Last year, at my accountant's advice, we set up a unit trust and a HDT. The HDT to own the units in the unit trust. There was no corporate trustee so my name and my wife's name appear on the title deed. The OSR are saying that because the units in the unit trust are owned by the HDT, which is of a discretionary nature, I might be liable for a "secondary liability" - which would amount to an additional fee $3,000.
My accountant did not mention anything about a possible "secondary liability" when we were first discussing this. My accountant is away at the moment and I do not expect to hear from him until midweek, hence this post.
The OSR has asked also me to send them a copy of the HDT trust deed.
Does anyone have any insights on this? Do such set-ups (HDT owning the units in a unit trust which owns the property) usually result in a secondary liability?
Thanks.
Tony
I just got off the phone to someone at the OSR (great fun). They were questioning a property I purchased last year.
Last year, at my accountant's advice, we set up a unit trust and a HDT. The HDT to own the units in the unit trust. There was no corporate trustee so my name and my wife's name appear on the title deed. The OSR are saying that because the units in the unit trust are owned by the HDT, which is of a discretionary nature, I might be liable for a "secondary liability" - which would amount to an additional fee $3,000.
My accountant did not mention anything about a possible "secondary liability" when we were first discussing this. My accountant is away at the moment and I do not expect to hear from him until midweek, hence this post.
The OSR has asked also me to send them a copy of the HDT trust deed.
Does anyone have any insights on this? Do such set-ups (HDT owning the units in a unit trust which owns the property) usually result in a secondary liability?
Thanks.
Tony
