S.L. 123.199 Art. 6Structured arrangements.

(1) When the Commissioner is of the opinion that two or more transfers form part of a structured arrangement, he may order, within five (5) years from the date of the last of the said transfers, that the exemption granted under these rules shall not apply to any of those PROPERTY TRANSFERS

transfers and in such a case the tax shall be chargeable on each of those transfers in accordance with the provisions of article 5A without reference to these rules.

(2) The tax chargeable as provided in sub-rule (1), net of any tax that would have already been paid on the transfers in question, shall become payable by not later than the last day of the month following that in which a notice of the said order is served on the transferor.

(3) A person served with a notice of an order made under sub-rule (1) shall have the same rights of objection and appeal in accordance with the provisions of the Income Tax Management Act as if that order were an assessment made under article 31 of that Act.

(4) For the purpose of this rule, "structured arrangement" means a series of two or more transfers of portions of the same property made between the same parties within a period of six (6) months which are executed separately rather than by means of one single transfer solely or mainly for the purpose of inflating the benefit of the exemption that would otherwise be available in terms of these rules.

(5) For the purpose of sub-rule (4):

(a) "portions of the same property" includes:

(i) adjacent parcels of land;

(ii) portions of developed property or of property under construction that are not identifiable as separate units;

(iii) the airspace and the property beneath it;

(iv) portions of the airspace overlying the same property.

(b) transfers made by two persons shall be deemed to be transfers made by the same person if one of them had acquired the property that he or it transfers from the other on or after 9 June 2020 in terms of a transfer that qualified for a fiscal exemption or benefit in terms of any provision of the Act or of any other law;

(c) transfers made to companies or other bodies of persons that are directly or indirectly as to more than fifty percent (50%) controlled and beneficially owned by the same persons shall be deemed to be transfers to the same person.