The NSW Supreme Court has held a land tax reassessment issued to a taxpayer was valid, despite the reassessment being made after the taxpayer began proceedings for review in relation to the initial assessment in the NSW Administrative Decisions Tribunal.
Broadly, the matter concerned a dispute relating to whether the primary production land tax exemption applied to 8 parcels of land owned by the taxpayer. The Commissioner had initially allowed the exemption for 3 parcels of land for the 2010 land tax year, but subsequently, issued a reassessment, which removed the exemption (this increased the taxpayer’s land tax liability from $532,135 to id=”mce_marker”.3m). The taxpayer, before the Supreme Court, argued the reassessment was invalid because the Commissioner could not amend an assessment that was already the subject of review under Pt 10 of the Taxation Administration Act 1996 (NSW).
The Court did not accept the taxpayer’s contention that there was an “implied limitation” on the Commissioner’s powers under s 9 of the Taxation Administration Act in making reassessments while review proceedings were pending. In doing so, the Court declared the reassessment was valid.
(Metricon Qld Pty Ltd v Chief Comr of State Revenue [2013] NSWSC 982, NSW Supreme Court, White J, 25 July 2013.)
[LTN 145, 30/7/13]