The NSW Supreme Court has found that lands transferred to 2 taxpayers by a rugby league club were neither owned by or in trust for the club, and that therefore the exemptions under s 10(1)(g)(iii) and s 10(1)(h) of the Land Management Act 1956 (NSW) did not apply.
Penrith Rugby League Club Ltd (Panthers) and some of its subsidiaries had transferred land to the first taxpayer (PIC), and to the second taxpayer (PPM), as trustee of a Panthers Property Unit Trust (Unit Trust). All the shares in PIC were owned by Panthers. The shares in PPM and the units in the Unit Trust were owned by M Co as trustee of the M Trust and I Co as responsible entity for the I Fund. The Commissioner assessed the taxpayers to land tax on the lands transferred to them by Panthers and its subsidiaries.
The issue before the Court was whether Panthers was an owner of the land, in addition to PIC and PPM, for land tax purposes. The taxpayers claimed they were exempt from land tax and relied on s 10(1)(g)(iii) , or alternatively, s 10(1)(h). However, as the Court found the properties were neither owned by nor in trust for Panthers, it held that neither the exemption in s 10(1)(g)(iii), nor the exemption in s 10(1)(h) applied to the properties. In conclusion, the Court affirmed the assessments.
(Panthers Investment Corporation Pty Ltd & Anor v Chief Comr of State Revenue [2013] NSWSC 25, NSW Supreme Court, Gzell J, 30 January 2013.)
[LTN 21, 1/2/13]