In a decision handed down on Thur 2.8.2012, the NSW Administrative Decisions Tribunal affirmed the Commissioner’s decision to group various car dealership companies (the taxpayers) for the relevant years for payroll tax purposes.
In August 2009, the Commissioner issued assessments grouping I Co and B Co for the period 1 July 2004 to 30 June 2008, and I Co, B Co and H Co for the period 22 August 2005 to 30 June 2008, on the basis there was a common controlling interest of directors in the companies – namely, Mr and Mrs S. The taxpayers did not accept the grouping arguing broadly that Mr and Mrs S did not exercise the controlling interest in the relevant companies as Mr F had been a director (or de facto director) of B Co since 1994 and that his wife, Mrs F, had also been a director (or de facto director) of B Co since July 2000 and of H Co since October 2005. The Tribunal heard Mr F acted as the accountant for Mr and Mrs S.
After examining the roles and activities of the relevant parties, the Tribunal held it was not satisfied that Mr and Mrs F had acted as de facto directors of the relevant companies during the years in question. The Tribunal dismissed the taxpayers’ appeals, but ordered a further hearing to make final orders.
(Bilquip Pty Ltd & Ors v Chief Comr of State Revenue [2012] NSWADT 151, NSW Administrative Decisions Tribunal, Verick JM, 2 August 2012.)
[LTN 148, 2/8]