The High Court on Fri 12.4.2013, refused applications for special leave by 4 taxpayers to appeal from the decision of the Full Court of the SA Supreme Court in National Mutual Life Association & Ors v Comr of State Taxation [2011] SASCFC 106. The Full Supreme Court had dismissed the appeals of 3 taxpayers (ING Life, ANZ Life Assurance and AMP Life), but allowed the appeal of 1 taxpayer (National Mutual Life), against the decision of the SA Supreme Court which had affirmed the Commissioner’s assessment of stamp duty concerning certain “rider” policies using the higher “general insurance” rate.
[LTN 69, 12/4/13]
[Head note from [2011] SASCFC 106 – Appeal from decision of Judge of Supreme Court dismissing appeals by four insurers against assessments of stamp duty made by the South Australian Commissioner of Taxation – the assessments under challenge relate to the amount of stamp duty payable and in particular the rate at which the duty was calculated – the Stamp Duties Act 1923 (SA) prescribes lower rate of duty payable on premiums “relating to life insurance” and higher rate on premiums “relating to policies of any kind (other than life insurances policies)” – appellants included additional benefits in their life insurance policies, such as “trauma” and “total and permanent disablement” benefits – where separate and identifiable premium payable in respect of those benefits – where Commissioner had assessed those benefits at the higher rate, and where the appellants contend that they should have been assessed at the lower rate – where debate at trial and on appeal as to the meaning of life insurance – whether the primary Judge in error in dismissing the appeals.
Consideration of the principles applicable to the interpretation of taxing statutes – consideration of the meaning of “life insurance”.
Held:
(1) National Mutual Life appeal allowed for the limited purpose of allowing the Commissioner to reconsider the assessments in relation to those trauma and total and permanent disablement premiums that were not separate and identifiable, in accordance with the reasons of this Court.
(2) Otherwise, appeals dismissed – stamp duty is a tax to be levied on instruments and it is important to address the true nature and character of the instruments the subject of the appeals – the premiums received for trauma insurance and total and permanent disablement benefits are to be characterised as “premiums relating to policies of any kind (other than life insurance policies)”, namely at the higher rate.]