The NSW Administrative Decisions Tribunal has affirmed the decision of the Chief Commissioner of State Revenue (NSW) to issue land tax assessments to the relevant taxpayers in relation to a vacant property for the 2004 to 2011 land tax years.
The issue concerned a vacant property purchased in September 2003 by 3 individuals (one of the individuals transferred his share of the property to another individual in 2006). The taxpayers were granted the principal place of residence (PPR) exemption for the 2004 to 2011 land tax years under clause 6 of Sch 1A to the Land Tax Management Act 1956 (NSW) for unoccupied land intended to be the owner’s PPR – multiple extensions of the exemption were granted at prevailing times to construct the dwelling on the property. However, after receiving a notice from the taxpayers of their intention to sell the land, the Commissioner in May 2011 issued 2 land tax assessments – one for the 2004 to 2006 land tax years, and the other for the 2007 to 2011 land tax years.
The Tribunal agreed with the Commissioner that the effect of revocation was that the PPR exemption was taken not to have applied. Accordingly, the assessments were confirmed.
(Sheedy & Anor v Chief Comr of State Revenue [2012] NSWADT 99, NSW Administrative Decisions Tribunal, Verick JM, 23 May 2012.)
[LTN 101, 28/5]