The NSW Chief Commissioner of State Revenue has been successful before the Appeal Panel of the NSW Civil and Administrative Tribunal in a matter concerning the grouping of 3 taxpayers for NSW payroll tax purposes.
The underlying dispute in the appeal concerned the Commissioner’s decision, in relation to financial years 2008 to 2012, not to exclude one or more of the taxpayers from payroll tax groups.
- It was common ground that one of the taxpayers (Seovic Civil Engineering Pty Ltd) formed a group with another taxpayer (Exell Management Pty Ltd).
- It was also common ground that Exell formed a group with the third taxpayer (Seovic Engineering Pty Ltd).
- Further, it was agreed by the parties that as a result of these 2 groups and s 74 of the Payroll Tax Act, all 3 taxpayers constituted a group.
At first instance, the NSW Civil and Administrative Tribunal ordered the Commissioner to exercise his discretion under s 79 of the Payroll Tax Act to exclude Exell from the first and second smaller groups. This resulted in the larger group being dissolved.
The Appeal Panel allowed the Commissioner’s appeal. It concluded that the carrying on of the businesses of each of Civil and Engineering was connected to Exell’s carrying on of its business. It confirmed that the discretion to de-group the members could not apply in the circumstances.
(Chief Comr of State Revenue v Seovic Civil Engineering Pty Ltd & Ors [2014] NSWCATAP 94, NSW Civil and Administrative Tribunal, Appeal Panel, Wright P, Schyvens DP, Seiden PM, 1 December 2014.)
[LTN 233, 2/12/14]