The ACT Civil & Administrative Tribunal has dismissed a taxpayer’s appeal against an earlier decision and affirmed that a “new lease” executed on 9 May 2010, after the date mentioned in s 150A of the Duties Act 1999 (ACT) of 30 June 2009, was chargeable with duty under the transitional provisions of s 421 of the Duties Act.
- In September 2004, the taxpayer entered into an agreement to lease a property, which was not yet built, to a Commonwealth department.
- On 7 April 2006, the parties executed a lease agreement with a proposed date of 6 April 2009 and stamp duty was paid on that agreement.
- Around March 2009, building was almost complete and the parties agreed the draft lease was no longer appropriate.
- On 9 May 2010, the parties released each other from the obligations under the lease agreement with effect from 5 April 2009 and entered into a new lease with effect from 6 April 2009. The new lease was assessed to duty.
- The Commissioner refunded the duty on the [old] lease agreement but refused the taxpayer’s objection to the duty assessment on the new lease.
- The parties agreed the new lease was not entered into to avoid duty.
In the earlier decision, the ACT Civil & Administrative Tribunal (“the original Tribunal”) had held that the new lease dated 9 May 2010 replaced the lease agreement dated 7 April 2006 and therefore affirmed the Commissioner’s decision. The Appeal Tribunal found no error to justify amending the decision of the original Tribunal. In doing so, the decision of the original Tribunal was affirmed.
(ISPT Pty Ltd & Comr for ACT Revenue (Appeal) [2013] ACAT 43, ACT Civil & Administrative Tribunal, Stefaniak AP, Corby SM, 20 June 2013.)
[LTN 120, 25/6/13]