Lygon Nominees Pty Ltd v Commissioner of State Revenue

(2007) 23 VR 474; [2007] VSCA 140

Victorian Court of Appeal

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Interrogate

Catchwords

1. Taxation
2. › Land tax
3. › Assessment of trustees
4. › Aggregation of land values
5. › Whether trustee owner of different lands in severalty for different beneficial owners
6. › Meaning of 'beneficial owners'
7. › Whether includes objects of discretionary trust or takers in default
8. › Land Tax Act 1958 (Vic), ss 3, 6, 8, 51, 52
1. Trusts
2. › Discretionary trusts
3. › Nature of interest of objects of power of appointment
4. › Whether objects have proprietary interest in trust assets
5. › Whether objects are 'beneficial owners' for revenue purposes
1. Trusts
2. › Discretionary trusts
3. › Takers in default of appointment
4. › Whether interest vested in possession
5. › Whether takers in default are 'beneficial owners'
1. Trusts
2. › Rule in Saunders v Vautier
3. › Application to discretionary trusts
4. › Whether objects collectively entitled to terminate trust
5. › Whether unrealised potential to terminate trust confers beneficial ownership

Quick Take

Where a single trustee holds land under multiple discretionary trusts, the land values will be aggregated for land tax purposes under s 52 of the Land Tax Act 1958 (Vic) because neither the objects of the power of appointment nor the takers in default of appointment are 'beneficial owners' within the meaning of that section. The term 'beneficial owners' requires an equitable estate of freehold in possession. Separate trustees should be appointed for each trust if aggregation is to be avoided.