In a decision handed down on Thur 12.9.2013, the NSW Administrative Decisions Tribunal refused a taxpayer’s claim for the primary production land tax exemption under 10AA(3) of the Land Tax Management Act 1956 (NSW).
The taxpayer had purchased the property, described as “vacant farm land”, in June 2007. The Tribunal heard details of various proposed developments, which had not proceed. It also heard details of an agistment agreement, which allowed cattle to graze on the land. The taxpayer’s representative submitted that as at 31 December 2007, the dominant and sole use of the land was for primary production. Further, it was contended that the use of the land for the purposes of maintaining 11 cows and their calves as at 31 December 2007 and continuing to 27 January 2008 was sufficient for the purposes of satisfying the requirements of s 10AA(3)(a).
The Tribunal held the taxpayer had “not discharged the onus to provide evidence to the Tribunal to satisfy the significant and substantial purpose test to permit the exemption pursuant to s 10AA of the Act to apply”. In this regard, it said “at best the evidence provided disclosed that a small number of cattle were on the subject property from time to time and including 31 December 2007”. Accordingly, the Commissioner’s decision was affirmed.
(Jamsapi Pty Ltd v Chief Comr of State Revenue [2013] NSWADT 202, NSW Administrative Decisions Tribunal, Hole JM, 12 September 2013.)
[LTN 177, 12/9/13]