Smith's Snackfood Company Ltd v Chief Commissioner of State Revenue (NSW)

[2013] NSWCA 470

NSW Court of Appeal

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Interrogate

Catchwords

1. Taxes and Duties
2. › Payroll tax
3. › Contractor provisions
4. › Relevant contract
5. › Whether contract under which services supplied for or in relation to performance of work
6. › Payroll Tax Act 2007 (NSW), ss 32(1)(b), 35
1. Taxes and Duties
2. › Payroll tax
3. › Contractor provisions
4. › Exemption from relevant contract
5. › Owner-driver exemption
6. › Whether services ancillary to conveyance of goods by means of vehicle provided by person conveying them
7. › Whether exemption applies to entire contract or can be divided into exempt and non-exempt parts
8. › Payroll Tax Act 2007 (NSW), s 32(2)(d)(i)
9. › Payroll Tax Act 1971 (NSW), s 3A(1A)(a)
1. Taxes and Duties
2. › Payroll tax
3. › Contractor provisions
4. › Apportionment provisions
5. › Whether amounts paid included in larger amount
6. › Whether apportionment available where single payment made under contract
7. › Payroll Tax Act 2007 (NSW), s 35(2)
8. › Payroll Tax Act 1971 (NSW), s 3A(2)(d)
1. Statutory Interpretation
2. › Meaning of 'ancillary'
3. › Whether 'ancillary' necessarily connotes subservience or subordination
4. › Context-dependent meaning
5. › Payroll Tax Act 2007 (NSW), s 32(2)(d)(i)

Quick Take

The owner-driver exemption in s 32(2)(d)(i) of the Payroll Tax Act 2007 (NSW) applies to the entire contract as an indivisible whole; it cannot be 'sliced' so that some services are exempt and others taxable. The exemption is engaged where the principal subject of the contract is the conveyance of goods and the other services are ancillary to that conveyance, even if not all services are individually ancillary. 'Ancillary' does not necessarily require subservience or subordination in this statutory context. De minimis non-ancillary services do not preclude the exemption. The word 'goods' in the exemption includes money (coins and notes) and spoiled products. The apportionment provision in s 35(2) can operate where a single undifferentiated amount is paid under the contract.