The NSW Administrative Decisions Tribunal has affirmed land tax assessments issued to 3 taxpayers in relation to a property (a holiday home) for the 2008 to 2012 land tax years.
In 1981, the taxpayers acquired the property. Following completion of a land tax questionnaire in October 2012, the Commissioner issued to the taxpayers land tax assessments in respect of the property. The Commissioner did not impose interest for failure to lodge a land tax return. The taxpayers argued that they had declared ownership of the property in a return lodged in 1994 and that the holiday home had never been rented out. They requested that land tax and interest for the 2008 to 2011 land tax years be waived, or that the Commissioner be estopped from assessing land tax for those years. Among other things, the taxpayers submitted that the delay in making the assessments was unfair. They conceded the liability to pay land tax from the 2012 land tax year when the “OSR altered its original decision”.
The Tribunal affirmed the Commissioner’s decision. Broadly, it said the liability to land tax is created by s 8 of the Land Tax Management Act 1959 (NSW) and that section is to be regarded as mandatory, not discretionary. It said the legislation does not confer on the Commissioner any general power to waive payment of land tax. It was also of the view that none of the facts, circumstances or arguments advanced by the taxpayers could operate to estop the Commissioner from issuing the assessments.
(Brataniec & Ors v Chief Comr of State Revenue [2013] NSWADT 65, NSW Administrative Decisions Tribunal, Walker JM, 27 March 2013.)
[LTN 60, 28/3/13]