Ford v Commissioner of State Revenue (Review and Regulation) [2019] VCAT 405
Background
The matter concerned the transfer of a property from a deceased estate. Prior to the transfer, it was agreed that although the property had been bequeathed to the taxpayer’s sister, a half interest in the property would be transferred to the taxpayer in return for him transferring to his sister $290,000, which was funded by cash distributions he received as part of his entitlement in the estate of the deceased. The other half share was held by his niece and her husband.
The issue was whether s42 of the Duties Act 2000 exempted the transfer of the property to the taxpayer.
Decision
On 25 March 2019, the tribunal held that the transfer was not exempt as two key requirements of s42(3) of the Duties Act were not met. The tribunal found that:
- The evidence was consistent with the transfer to the taxpayer having been made for valuable consideration.
- The transfer could not have been in satisfaction of any entitlement the taxpayer had under the will of the deceased as any such entitlement had already been satisfied when the taxpayer received distributions from the estate (which did not include the property).
