In a decision handed down on Mon 28.4.2014, the NSW Civil and Administrative Tribunal affirmed a decision of the NSW Chief Commissioner of State Revenue to group a taxpayer with 6 other entities for payroll tax purposes.
Following an audit, the Commissioner grouped the taxpayer with 6 other entities for payroll tax purposes and issued amended payroll tax assessment notices for the financial years ending 30 June 2007 to 30 June 2011 (inclusive).
The taxpayer objected to the amended assessments and requested that the Commissioner de-group the entities from 1 July 2007 to 30 November 2011. Before the Tribunal, the taxpayer contended that, other than 2 of the entities, which were not employing entities, the other members of the company group should be de-grouped.
The Tribunal was not satisfied that it was more likely than not that the businesses carried on by the members of the company group were carried on independently of each other and that there was no connection between the carrying on of the businesses. Among other things, the Tribunal was of the view the taxpayer had failed to place evidence before it to support its submissions. Accordingly, the Commissioner’s decision was affirmed.
(Starr Partners Pty Ltd v Chief Comr of State Revenue [2014] NSWCATAD 51, NSW Civil and Administrative Tribunal, Isenberg SM, 28 April 2014.)
[LTN 78, 28/4/14]