The Appeal Panel of the NSW Administrative Decisions Tribunal has allowed a taxpayer’s appeal against an earlier decision which had refused the taxpayer’s application to be excluded from a payroll tax group under s 79 of the Payroll Tax Act 2007 (NSW).
In June 2011, the Commissioner issued payroll tax assessments to the taxpayer for the 2008 to 2010 tax years following his decision to group the taxpayer with 4 other companies. The taxpayer conceded that the grouping provisions applied, but contended that the Commissioner should exercise his discretion under s 79 to exclude it from the group.
The Appeal Panel held the Tribunal, at first instance, had erred in its construction of the Commissioner’s discretion under s 79 to exclude the taxpayer from the group. The Tribunal had construed the test as requiring no connection and a complete independence between group businesses. The Appeal Panel held the test was “a matter of judgment, or degree”. Accordingly, the Appeal Panel remitted the matter to the Tribunal for redetermination in accordance with its reasons.
(Lombard Farms Pty Ltd v Chief Comr of State Revenue [2013] NSWADTAP 42, NSW Administrative Decisions Tribunal, Appeal Panel, Seiden DP, Block JM, Bennett NJM, 6 September 2013.)
[LTN 174, 9/9/13]