Three related taxpayers have been unsuccessful before the NSW Civil and Administrative Tribunal in seeking the primary production land tax exemption in relation to 27 properties pursuant to s 10AA of the Land Tax Management Act1956 (NSW).
- The taxpayers sought the land tax exemption for the properties for the 2006 to 2010 land tax years (for one property, the taxpayers claimed the exemption for the 2008 to 2010 land tax years only).
- Twelve properties had residential accommodation on part of the property and were rented to tenants in the years in question.
- The other properties were unoccupied.
- With the exception of one property, all the properties were zoned rural.
- At issue was whether the taxpayers were entitled to the land tax exemption under s 10AA(3)(a) for the cultivation of nut trees in relation to the properties for the relevant years.
The Tribunal held the taxpayer had failed to discharge the onus of establishing that, in the relevant years, the taxpayers were cultivating nut trees for sale for the produce, which it said was a prerequisite to the entitlement for the exemption under s 10AA. Accordingly, the land tax assessments were affirmed.
(Favello Pty Ltd & Ors v Chief Comr of State Revenue [2014] NSWCATAD 47, NSW Civil and Administrative Tribunal, Verick SM, 16 April 2014.)
[LTN 78, 28/4/14]