In a decision handed down on Thur 28.11.2013, the NSW Administrative Decisions Tribunal affirmed the Commissioner’s decision denying a taxpayer’s claim for a duty exemption in relation to the purchase of 2 residential properties.
The taxpayer was a body corporate incorporated under the Baptist Union Incorporation Act 1919 (NSW). It purchased 2 residential properties and applied to the Commissioner for an exemption under s 275(1) of the Duties Act 1997 (NSW) in respect of the duty otherwise payable. On 22 February 2012, the Commissioner decided, in each instance, the taxpayer was not exempt under s 275(1) of the Duties Act from duty otherwise payable on the contract for sale, transfer and mortgage. The taxpayer argued it was exempt.
Broadly, before the Tribunal, the taxpayer contended it purchased the properties as a trustee for another entity (a theological college), a body corporate referred to in s 275(3)(a) of the Duties Act, and that it in its capacity as trustee was an “exempt charitable or benevolent body” as defined in s 275(3)(c).
The Tribunal found the facts in the case did not establish that the taxpayer had held the properties on trust for the college – rather, the Tribunal was of the view the evidence demonstrated that it was necessary for the taxpayer to be the legal owner, and that there was no evidence that the college was the beneficial owner of the properties. Accordingly, the Commissioner’s decision was affirmed.
(Baptist Union of New South Wales v Chief Comr of State Revenue [2013] NSWADT 270, NSW Administrative Decisions Tribunal, Verick JM, 28 November 2013.)
[LTN 231, 28/11/13]