Chief Commissioner of State Revenue v Downer EDI Engineering Pty Ltd [2020] NSWCA 126

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Chief Commissioner of State Revenue v Downer EDI Engineering Pty Ltd [2020] NSWCA 126 Hearing dates: 20 February 2020 Date of orders: 1 July 2020 Decision date: 01 July 2020 Before: Bathurst CJ at [1]; Macfarlan JA at [153]; Meagher JA at [154] Decision: (1) Appeal dismissed. (2) The appellant pay the respondent's costs of the appeal. Catchwords: STATUTORY INTERPRETATION – Payroll Tax Act 2007 (NSW) – ss 32(2)(a) and 32(2)(d)(i) – relevant contract –whether payments made under a subcontract were exempt from payroll tax – whether legal title required to pass for there to be a supply of goods – whether payments were made "under" the subcontract – whether installation services were "ancillary" to the supply of goods STATUTORY INTERPRETATION – Taxation Administration Act 1996 (NSW) – ss 25 and 33 – whether the power to remit penalty tax and interest is limited Legislation Cited: Income Assessment Act 1936 (Cth) Payroll Tax Act 2007 (NSW) Taxation Administration Act 1996 (NSW) Cases Cited: Adams Bidco Pty Ltd v Chief Commissioner of State Revenue [2019] NSWSC 702 Bayton Cleaning Company Pty Ltd v Chief Commissioner of State Revenue [2019] NSWSC 657 Chief Commissioner of State Revenue v Paspaley [2008] NSWCA 184 Commissioner of Taxation v Energy Resources of Australia Ltd (1994) 54 FCR 25 Federal Commissioner of Taxation v Consolidated Media Holdings Ltd (2012) 250 CLR 503; [2012] HCA 55 Federal Commissioner of Taxation v Sara Lee Household & Body Care (Australia) Pty Ltd (2000) 201 CLR 520; [2000] HCA 35 Inghams Enterprises Pty Ltd v Hannigan [2020] NSWCA 82 Lloyd's UDT Finance Ltd v Chartered Finance Trust Holdings plc [2001] STC 1652 Macquarie International Health Clinic Pty Ltd v University of Sydney (1988) 98 LGERA 218 Minister for Immigration and Border Protection v SZVFW (2018) 264 CLR 541; [2018] HCA 30 Navy Health Ltd v Federal Commissioner of Taxation (2007) 163 FCR 1; [2007] FCA 931 Norbis v Norbis (1986) 161 CLR 513; [1986] HCA 17 R v Her Majesty's Treasury; Ex parte Smedley [1985] QB 657 Rinehart v Hancock Prospecting Pty Ltd [2019] HCA 13; 93 ALJR 582 Smith's Snackfood Company Ltd v Chief Commissioner of State Revenue (NSW) [2013] NSWCA 470 SZTAL v Minister for Immigration and Border Protection (2017) 262 CLR 362; [2017] HCA 34 Tasty Chicks Pty Ltd v Chief Commissioner of State Revenue (NSW) (2011) 245 CLR 446; [2011] HCA 41 TRM Copy Centres (UK) Ltd v Lanwall Services Ltd [2009] 1 WLR 1375 Warren v Coombes (1979) 142 CLR 531; [1979] HCA 9 Yearworth v North Bristol NHS Trust [2010] QB 1 Texts Cited: Palmer on Bailment (3rd ed, 2009, Sweet & Maxwell) Category: Principal judgment Parties: Chief Commissioner of State Revenue (Appellant) Downer EDI Engineering Pty Ltd (Respondent) Representation: Counsel: R L Seiden SC with M Sealey (Appellant) N J Young QC with C A Burnett (Respondent)