friends of mine bought a buisness the previous owner did a bodge job on all the legal papers.now when they got the loan,they didnt borrow any extra for stamp duty 1.were they meant to pay it 2.does the previos owner still own the buisness if the stamp duty hasnt been paid 3.what legal rights do they have

-- craig vallett (generexer@start.com.au), January 10, 2001

Answers

1. This is what the Government of Western Australia says:

"A person acquiring an established business is liable for the payment of stamp duty when goodwill or other dutiable property is acquired. Dutiable property includes : Goodwill Fixed plant and equipment Tenant's fixtures and fittings Freehold land, Crown Leases (including fixtures and chattels) Mining tenements (including fixtures and chattels) Business licences

Stamp duty will be calculated at the normal conveyance rates on the value of the dutiable property of the business.

Where the acquisition of business is the subject of a written agreement, the person liable for the duty must submit the instrument for assessment of stamp duty within three months after the date of execution (signing).

Where there is no such instrument, the person liable for the duty must submit for assessment of stamp duty, a statement detailing the dutiable property. All other parties to the transaction must also give notice that the transaction has been entered into. The statement and the notice must be submitted within three months after the transaction was entered into. Statement and notice forms are available from the State Revenue Department upon request."

2. Government of South Australia http://www.treasury.sa.gov.au/revenuesa/sdtrans.html

3. Stamp Duty rules not uniform throughout Australia http://www.brw.com.au/specials/lawnotes/07stampduty.htm

Obviously you should consult a lawyer but it appears from the above documents that your friend is liable for the stamp duty and has a three-month provision in which to pay it. I hope this information was helpful but it should not be taken as legal advice because I am not a lawyer.

M.

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