The NSW Supreme Court has affirmed a payroll tax assessment (including interest and penalty tax) issued to a taxpayer for the relevant periods. It also affirmed the Commissioner’s decision not to exclude the taxpayer from its group with another company for payroll tax purposes.
The taxpayer disputed the Commissioner’s decision to assess it as liable for payroll tax, interest, and penalty tax for the 2008 and 2009 financial years in the amounts of $469,412.06 and $605,034.01 respectively. The assessment was made on the basis that the taxpayer was a group member with another company pursuant to s 72(2)(c)(i) and 72(2)(e) of the Payroll Tax Act 2007 (NSW). The Commissioner had determined that as a group member with the other company, the taxpayer was jointly and severally liable pursuant to s 81 of the Payroll Tax Act for amounts payable by the other company. The other company went into liquidation on 1 June 2010.
At the hearing the taxpayer conceded that by reason of s 72(2)(e) it and the other company were both members of a group for the years in question. The issue was whether the Court should exercise the Commissioner’s discretion in s 79 to exclude the taxpayer as a member of the group. The Supreme Court was not satisfied that the taxpayer had discharged the onus on establishing that the discretion should be exercised in its favour. Accordingly, the Commissioner’s decisions are affirmed.
(Conrad Linings Pty Limited v Chief Comr of State Revenue [2014] NSWSC 1020, NSW Supreme Court, White J, 18 July 2014.)
[LTN 145, 30/7/14]