In a decision handed down on Wed 8.10.2014, the NSW Civil and Administrative Tribunal refused a taxpayer’s claim for the primary production land tax exemption in respect of a property for the 2012 land tax year.
The taxpayer claimed that on the taxing date (30 December 2011), it was using the land for the dominant purpose of maintaining horses for sale, it was doing so for the purpose of profit on a continuous or repetitive basis, and its horse business had a significant and substantial commercial purpose of character, as required by s 10AA of the Land Tax Management Act 1956 (NSW). It was undisputed that the land was rural land.
The Tribunal was satisfied that as at 30 December 2011, the taxpayer was engaged in its horse business for the purpose of profit on a continuous or repeated basis. However, it was not satisfied that the business then had a significant and substantial commercial purpose or character, or that it was the dominant use of the land. Accordingly, the Commissioner’s decision was affirmed.
(Bisvic Pty Ltd v Chief Comr of State Revenue (No 2) [2014] NSWCATAD 166, NSW Civil and Administrative Tribunal, Perrignon SM, 8 October 2014.)
[LTN 194, 8/10/14]