The NSW Administrative Decisions Tribunal has affirmed the Commissioner’s decision to reassess a taxpayer for land tax for the 2007 to 2011 land tax years on the basis that the subject land was held by a special trust and that the taxpayer was not entitled to the tax-free threshold which had previously been allowed.
The taxpayer in its capacity as the trustee of the property trust sought review of the land tax reassessments. In December 2011, the Commissioner reassessed land tax on the basis that the trust was throughout the relevant years a special trust. The Commissioner also imposed interest, but remitted the premium rate component and penalty tax.
The taxpayer admitted that the trust was at all times a special trust and that the Commissioner was not until October 2011 made aware that the property was owned by the trust. However, the taxpayer disputed the reassessments submitting it was never asked whether the property was held in a trust (and it was not aware of the requirement concerning special trusts) and that the Commissioner should have made the correct assessments as he had access to Land Titles Office information. The taxpayer sought to “cancel” the reassessments.
The Tribunal rejected the taxpayer’s arguments and concluded it was under a legal obligation to inform the Commissioner the property was owned by the trust, which was a special trust. Accordingly, the reassessments were affirmed.
(EK Anderson Investments Pty Ltd ATF CACS Property Trust v Chief Comr of State Revenue [2012] NSWADT 132, NSW Administrative Decisions Tribunal, Block JM, 4 July 2012.)
[LTN 130, 9/7]