The NSW Civil and Administrative Tribunal has remitted a matter to the Chief Commissioner of State Revenue (NSW) to reconsider a land tax reassessment issued more than 5 years after initially allowing the principal place of residence (PPR) land tax exemption in respect of the land.
In August 2013, the Commissioner issued to the taxpayers (2 individuals) a land tax reassessment in respect of their former intended place of residence (the land) for the 2008 to 2013 land tax years. The initial assessment allowing the exemption was issued in February 2008. The reassessment was issued because the taxpayers failed to actually use and occupy the land as their PPR for a period of at least 6 months as required by clause 6 of Sch 1A to the Land Tax Management Act 1956 (NSW). The Tribunal heard the taxpayers had intended to demolish and build new dwelling on the land purchased in 2007, but after encountering development approval delays and expenses beyond their means to build, the land was sold in November 2013. Before the Tribunal, the taxpayers only disputed the 2008 land tax reassessment.
The Tribunal held the 5-year restriction on reassessments under s 9(3) of the Taxation Administration Act 1996 (NSW) did not apply as the proviso under s 9(3)(c) was answered by clause 6(4), which allows the Commissioner to extend the concession for an unlimited time (subject to conditions). However, the Tribunal noted that in another recent decision, which refused an application to extend the concession, the Commissioner in that case indicated he would not reassess some of the earlier land tax years. In the circumstances, the Tribunal said it was obliged to remit the matter to the Commissioner to reconsider his decision to reassess “having regard to any general discretion or his assessing practices as generally applied in similar cases”.
(Woods v Chief Comr of State Revenue [2014] NSWCATAD 151, NSW Civil and Administrative Tribunal, Verick SM, 23 September 2014.)
[LTN 185, 24/9/14]