In a decision handed down on Tue 7.8.2012, the Victorian Supreme Court has denied the Commissioner of State Revenue (Vic) leave to appeal, under s 148 of the Victorian Civil and Administrative Tribunal Act 1998 (Vic), from the orders of the Victorian Civil and Administrative Tribunal in a payroll tax grouping matter.
The Tribunal confirmed the Commissioner’s decision to group a taxpayer and 3 other companies for the 2005 to 2007 financial years, but not for the 2008 year. In addition, the Tribunal rejected the Commissioner’s alternative basis to group based on “inter-use of one or more employees” under s 9A(1A)(d) of the Payroll Tax Act 1971 (Vic) and s 71(3) of the Payroll Tax Act 2007 (Vic). The Commissioner sought leave to appeal on 2 proposed questions of law which mainly centred on the phrase “perform duties” found in s 71(3) of the 2007 Act.
The Supreme Court dismissed the Commissioner’s application for leave to appeal. The Court did not grant leave on the first question as it was of the view that it was irrelevant to the granting of the relief sought on appeal. In relation to the second question, the Commissioner broadly contended the Tribunal had misconstrued s 71(3) as requiring “a legal relationship”. However, the Court did not consider there was a sufficient case of arguable error to warrant the grant of leave.
(Comr of State Revenue v Liquid Rock Constructions Pty Ltd [2012] VSC 329, Victorian Supreme Court, Pagone J, 7 August 2012.)
[LTN 151, 7/8]