In a decision handed down Thur 15.11.2012, the NSW Administrative Decisions Tribunal has found a taxpayer (a corporate trustee) was entitled to a land tax exemption under s 10(1)(d) of the Land Tax Management Act 1956 (NSW) in respect of various properties for the 2012 land tax year.
Broadly, following the death of the late Ms Patricia Dukes in October 2010, the Patricia Dukes Foundation was established under the instructions of her Will. Under the terms of her Will, the residue of her estate, which comprised various properties (16 parcels of real property), were given to the trustees to be held by them as a charitable trust. The Will required that the income and capital of the Foundation be distributed to eligible charities as specified (broadly, charities that were deductible gift recipients). The Commissioner declined the taxpayer’s application for a land tax exemption under s 10(1)(d) (however, the Commissioner allowed a land tax exemption in relation to one of the properties).
The Tribunal allowed the exemption under s 10(1)(d) sought by the taxpayer. It found the Foundation was a “charitable institution”. The Tribunal held the taxpayer had satisfied the second limb of s 10(1)(d) – that is, the land was owned in trust for a charitable or educational institution, and that the Foundation was carried on solely for charitable purposes and not for pecuniary profit.
(PG Dukes Pty Ltd ATF Patricia Dukes Foundation v Chief Comr of State Revenue [2012] NSWADT 238, NSW Administrative Decisions Tribunal, Block JM, 15 November 2012.)
[LTN 222, 15/11]