A taxpayer (a company Incorporated in NSW) which filed objections to assessments for payroll tax imposed by the Payroll Tax Act 1971 (Qld) on 17 October 2011 for the 2009, 2010 and 2011 years for over $5m (including penalties) has been successful before the Supreme Court of Queensland in seeking an order under s 30 of the Judicial Review Act 1991 (Qld) directing the Commissioner of State Revenue to determine the objections within a stated time (namely, by 30 August 2012). The Court arrived at its decision on the basis of finding that the history of the matter demonstrated there had been unreasonable delay on the part of the Commissioner in determining the objections.
In particular, the Court found there had been a complete failure by the Commissioner to investigate the real issue raised by the objections (namely, whether relevant wages were paid for the performance of work for which services were supplied by an entity who provided the services of more than one person, and therefore were exempt). In this regard, the Court noted that invoices supplied by the taxpayer raised a very real case that entities other than the taxpayer were supplying the services of more than one person, and that accordingly amounts paid to these entities pursuant to these invoices should not have been taken into account in the assessments.
The Court also found that the Commissioner failed to act on audited accounts he had requested from the taxpayer which did not support the Commissioner’s position, and that he had not given the taxpayer an explanation for this. The Court also suggested that the Commissioner, in going beyond the grounds relied upon by the taxpayer in its objections, appeared to be improperly attempting to “fully reinvestigate” the taxpayer’s financial affairs.
(Lis-Con Concrete Constructions Pty Ltd v Comr of State Revenue [2012] QSC 251, Queensland Supreme Court, Lyons J, 17 September 2012.)
[LTN 201, 17/10]