Seovic Engineering Pty Ltd v Chief Commissioner of State Revenue

[2015] NSWCA 242

NSW Court of Appeal

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Interrogate

Catchwords

1. Taxation
2. › Payroll tax
3. › Grouping provisions
4. › De-grouping discretion
5. › Precondition for exercise of discretion
6. › Whether discretion is broad discretion enlivened whenever just and reasonable to exclude
7. › Whether business carried on independently of and not connected with other group member's business
8. › Payroll Tax Act 2007 (NSW), s 79
1. Taxation
2. › Payroll tax
3. › Grouping provisions
4. › De-grouping discretion
5. › Mandatory relevant considerations
6. › Whether presence or absence of artificial arrangements, splitting of business, and commercial arm's-length terms are mandatory considerations
7. › Payroll Tax Act 2007 (NSW), s 79(2)
1. Administrative Law
2. › Tribunals
3. › Appeal from Appeal Panel of NCAT
4. › Leave to appeal on question of law
5. › Whether proposed grounds have sufficient prospects of success
6. › Civil and Administrative Tribunal Act 2013 (NSW), s 83

Quick Take

The de-grouping discretion under s 79(1) of the Payroll Tax Act 2007 (NSW) cannot be exercised merely because it would be just and reasonable to alleviate harsh consequences of grouping; the Chief Commissioner must be satisfied of the specific precondition in s 79(2) that the business is carried on independently of, and is not connected with, the carrying on of a business by any other group member. The presence or absence of artificial arrangements to avoid duty and the splitting of existing business are not mandatory relevant considerations under s 79(2), although they may in some circumstances be relevant to the ultimate question.