Two corporate taxpayers have been unsuccessful before the NSW Civil and Administrative Tribunal in a payroll tax grouping matter.
The Commissioner had grouped the taxpayers with another corporate entity for payroll tax purposes. The dispute concerned revised assessments for the financial years 2009 to 2013 for payroll tax, penalty tax and interest, which amounted to $203,714.
The Tribunal was not satisfied that throughout the relevant period 2 individuals did not comprise a set of persons with a controlling interest in each business carried on by each of the 3 entities. It was not satisfied that each of the 3 entities did not constitute a group throughout the relevant period. The Tribunal affirmed the revised assessments, penalty tax and interest imposed. As requested by the parties, the Tribunal adjourned the application concerning the Commissioner’s discretion to exclude either or both the taxpayers from the group.
(Chan & Naylor Australia Pty Ltd & Anor v Chief Comr of State Revenue  NSWCATAD 4, NSW Civil and Administrative Tribunal, Isenberg SM, 5 January 2016.).
[LTN 2, 6/1/16]