Commissioner of State Revenue v Danvest Pty Ltd & Anor [2017] VSCA 382
Background
The issue for consideration was whether the acquisition by the Taxpayers of interests in a unit partnership constituted a transfer of ‘an interest in an estate in fee simple’ within the meaning of ss10(1)(a)(i) and 10(1)(ac) of the Duties Act.
Decision
On 20 December 2017, the Court of Appeal concluded that it did not. The interest of a partner in partnership property is an equitable right to a proportion of any surplus upon dissolution of the partnership once assets have been realised and debts and liabilities paid. Prior to dissolution, the interest did not confer a proprietary interest in partnership assets, including any land held by the partnership.
