Transfer Requirements where Property Owned by Company or Trust

Transfer requirements where sugarcane farm owned by a private company

Where a designated private company owns the sugarcane farm or sugarcane farms and relevant sugarcane farm assets it is necessary to first transfer the sugarcane farm(s) and relevant sugarcane farm assets from the company to the sugarcane farmer. The sugarcane farmer can then transfer the sugarcane farm(s) and relevant sugarcane farm assets to the eligible descendants as a transfer between natural persons in order to take advantage of RASF.

Transfer of shares in company not sufficient

Where a designated private company owns the sugarcane farm(s), there must be a transfer of legal title of the land before participation in RASF is permitted. Transfer of the private company shares by the sugarcane farmer to an eligible descendant is not sufficient. To participate in the scheme the transfer of the property must be between natural persons.

Sugarcane farm owned by a trust

Where the sugarcane farm(s) is owned by a designated private trust, it is possible for the sugarcane farmer to qualify for RASF by transferring their trusteeship of a private trust to the eligible descendant(s). Under trust law, a trustee is the legal owner of land held within a trust. Alternatively, the trustee may choose to transfer the sugarcane farm(s) and relevant sugarcane farming assets to the sugarcane farmer, who then transfers them to the eligible descendant(s).

Sugarcane farmer who is trustee or beneficiary

A sugarcane farmer who is a trustee of a trust that owns the sugarcane farm and sugarcane farm assets has an eligible interest in the sugarcane farm(s). A retiring sugarcane farmer who was a beneficiary only and not a trustee did not satisfy the rules relating to qualifying sugarcane farmer.