Tracing

In addition to any interest in land or other property that it may hold in its own right, a unit trust scheme or a private company is taken to hold an interest in land or other property held by a linked entity of the unit trust scheme or private company.

The value, for duty purposes, of the interest in land or other property that a unit trust scheme or a private company (being a principal entity) is taken to hold because of a holding by a linked entity is that portion of the interest's unencumbered value to which the unit trust scheme or private company would be entitled (without regard to any liabilities of the linked entity or any other person in the ownership chain) if each entity in the chain of entities were to be wound up.

Provisions relating to when the landholder is a party to an uncompleted agreement for sale (Section 163V of the Duties Act 1997) or a beneficiary of a discretionary trust (Section 163U) should also be considered when determining whether a landholder is land rich.

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