The NSW Court of Appeal has dismissed a taxpayer’s appeal against an earlier decision which had denied the taxpayer’s claim for the primary production land tax exemption in respect of a property for the 2008 to 2011 land tax years.
The subject land adjoined other land owned by Mr S and others. There was no dispute that Mr S had used the subject land for raising cattle, cropping and grazing. However, in the documents tendered before the NSW Administrative Decisions Tribunal at first instance, which were produced by the NSW Chief Commissioner of State Revenue, there was a record of an interview with Mr S, disclosing that he had also used the subject land for non-primary production activities, such as horse riding.
The NSW Administrative Decisions Tribunal held the taxpayer had not discharged the onus of proving that the “dominant use” of the subject land was for a primary production purpose per s 10AA of the Land Tax Management Act 1956 (NSW). The Appeal Panel rejected the taxpayer’s arguments that the Tribunal had erred in its construction of s 100(3). In doing so, it affirmed the Tribunal’s decision.
(Cornish Investments Pty Limited v Chief Comr of State Revenue (RD) [2013] NSWADTAP 25, NSW Court of Appeal, Seiden DP, Frost JM, Schwager NJM, 3 June 2013.)
[LTN 106, 4/6/13]