The Victorian Civil and Administrative Tribunal has affirmed a land tax reassessment issued to a taxpayer after concluding that documents were leases and not a licence.
The Commissioner of State Revenue (Vic) had issued a reassessment to the first taxpayer for the 2007 to 2011 land tax years thereby increasing the taxpayer’s liability by $3m. The reassessment concerned “leases” entered into by the second taxpayer in relation to 2 bus depots (Crown land). The “leases” were connected with the taxpayers’ agreements with the Victorian Government to provide public bus services. The taxpayers argued the second taxpayer was not the “owner”, or the land was exempt from land tax, because the second taxpayer was a licensee and not a lessee in relation to the bus depots.
The Tribunal concluded the second taxpayer had exclusive possession of the relevant lands and the documents were intended by the parties to be leases and were in fact leases. Therefore, it held the second taxpayer was a deemed owner as the documents were both “a lease of Crown land” and “a lease from the Crown”. As a result, the Commissioner’s decisions were affirmed.
(Ventura Motors Pty Ltd & Ors v Comr of State Revenue (Review and Regulation) [2013] VCAT 1001, Victorian Civil and Administrative Tribunal, Davis SM, 14 June 2013.)
[LTN 129, 8/7/13]