The Victorian Civil and Administrative Tribunal has affirmed the Commissioner’s assessments made pursuant to the Land Tax Act 1958 (Vic), the Land Tax Act 2005 (Vic) and the Duties Act 2000 (Vic) in relation to 11 taxpayers who claimed to be trustee companies representing 67 trusts.
Broadly, the taxpayers objected to grouped land tax assessments and the assessment of property transfers, on the basis that the Commissioner had failed to take into account their status as trustees (referred to as the “trust” ground). Further, the taxpayers claimed the Commissioner failed to make a “determination” pursuant to s 44(3) of the LTA 1958 and therefore disqualified himself from assessing the taxpayers as a group (referred to as the “grouping” ground).
The background facts are complicated. The taxpayers are connected to Mr C who was a director and shareholder of most of the taxpayers. The Tribunal heard Mr C in the 1990s “regularly undertook property development projects using ‘multi-tiered trust structures'”. It also heard evidence of how Mr C created new unit trusts “in-house” using a “standard form unit trust deed” in addition to other steps.
The Tribunal concluded that none of the trusts alleged by the 11 taxpayers existed at the relevant times to substantiate the objections on the trust ground.
In relation to the grouping ground, the Tribunal concluded the Commissioner had not disqualified himself from assessing the taxpayers as a “single corporation”.
(Aston (Aust) Properties Pty Ltd & Ors v Comr of State Revenue (Taxation) [2012] VCAT 48, Victorian Civil and Administrative Tribunal, Glover M, 9 January 2012.)
[LTN 22, 3/2]