A taxpayer has been unsuccessful before the NSW Civil and Administrative Tribunal in seeking the primary production land tax exemption for the 2011 to 2013 land tax years.
The Commissioner had issued land tax assessments to the taxpayer for 3 parcels of property for the relevant years.
- The taxpayer argued it was entitled to the primary production exemption under s 10AA of the Land Tax Management Act 1956 (NSW) on the basis that all the parcels constituting the property were used for the purpose of cultivation of grasses of sale as hay, and in the case of one of the parcels cultivation of eucalyptus trees for sale as hardwood timber and firewood.
- The Commissioner contended that there was no such purpose and that the taxpayer had not discharged the onus of proving its case.
The Tribunal found, based on the evidence before it, that there was no cultivation as required by the Act for the relevant years. The Tribunal agreed with the Commissioner’s contention that cultivation requires more than allowing grass and trees to grow on land, and moreover, that labour and attention must be devoted to ensuring that this occurs.
(R&E Drafting Pty Limited v Chief Comr of State Revenue [2014] NSWCATAD 75, NSW Civil and Administrative Tribunal, Block SM, 6 June 2014.)
[LTN 110, 11/6/14]