SPIC Pacific Hydro Pty Ltd v Chief Commissioner of State Revenue [2021] NSWSC 395

Supreme Court New South Wales

Medium Neutral Citation: SPIC Pacific Hydro Pty Ltd v Chief Commissioner of State Revenue [2021] NSWSC 395 Hearing dates: 7 – 9 September 2020 Date of orders: 20 April 2021 Decision date: 20 April 2021 Jurisdiction: Equity Before: Payne JA Decision: See [214] Catchwords: LAND LAW – fixtures – whether plant and equipment installed at a wind farm are fixtures – intention of parties – degree of annexation – where wind turbines very strongly affixed to land – purpose of annexation – whether wind turbines annexed for better enjoyment of land LAND LAW – fixtures – whether plant and equipment installed on leased land for the purposes of a wind farm are tenant's fixtures TAXES AND DUTIES – land tax – liability – tax threshold – whether taxpayer a "landholder" for the purposes of Ch 4 of the Duties Act 1997 (NSW) – whether the value of the land holding is less than $2,000,000 TAXES AND DUTIES – land tax – liability – valuation – how interest in land is properly to be valued TAXES AND DUTIES – land tax – liability – whether entity owns goods which could be disregarded under s 163G of the Duties Act 1997 (NSW) – whether items characterised as "goods" are fixtures – items not "goods" – s 163G not applied Legislation Cited: Corporations Act 2001 (Cth), s 436A Duties Act 1997 (NSW), s 23, Ch 4, ss 146, 146A, 147, 147A, 148, 149, 150, 151, 155, 158, 162, 163, 163G, 163K, Dictionary Evidence Act 1995 (NSW), s 191 Income Tax Assessment Act 1997 (Cth), s 855-30(2) Personal Property Securities Act 2009 (Cth), s 10 Stamp Act 1921 (WA), s 76(1) Supreme Court Act 1970 (NSW), s 69 Taxation Administration Act 1996 (NSW), Div 1 Part 10, ss 97(1)(a), 100, 101 Valuation of Land Act 1916 (NSW) Cases Cited: Adams v Medhurst & Sons Pty Ltd (1929) 24 Tas LR 48 Agripower Barraba Pty Ltd v Blomfield [2015] NSWCA 30; (2015) 317 ALR 202 Anthony v Commonwealth (1973) 47 ALJR 83 Attorney-General (Cth) v R T Co Pty Ltd (No. 2) (1957) 97 CLR 146; [1957] HCA 29 Australian Provincial Assurance Co Ltd v Coroneo (1938) 38 SR (NSW) 700 Avon Downs Pty Ltd v The Federal Commissioner of Taxation (1949) 78 CLR 353; [1949] HCA 26 AWF Prop Co 2 Pty Ltd (as trustee) (ACN 603 996 407) v Ararat Rural City Council [2020] VSC 853 Bellinz v Federal Commissioner of Taxation (1998) 84 FCR 154; [1998] FCA 615 Boyd v Shorrock (1867) LR 5 Eq 72 Chief Commissioner of State Revenue v Centro (CPL) Ltd (2011) 81 NSWLR 462; [2011] NSWCA 325 Commissioner of State Revenue v Snowy Hydro Ltd (2012) 43 VR 109; [2012] VSCA 145 Commissioner of State Revenue v TEC Desert Pty Ltd (2009) 40 WAR 344; [2009] WASCA 128 Commissioner of State Revenue v Uniqema Pty Ltd [2004] VSCA 82; (2004) 56 ATR 19 Commissioner of State Revenue (WA) v Placer Dome Inc (2018) 265 CLR 585; [2018] HCA 59 Commissioner of Taxation v Metal Manufactures Ltd (2001) 108 FCR 150; [2001] FCA 365 DKLR Holding Co (No 2) Pty Ltd v Commissioner of Stamp Duties (New South Wales) (1982) 149 CLR 431; [1982] HCA 14 Eastern Nitrogen Ltd v Commissioner of Taxation (2001) 108 FCR 27; [2001] FCA 366 Eon Metals NL v Commissioner of State Taxation (WA) (1991) 22 ATR 601 Federal Commissioner of Taxation v Resource Capital Fund III LP (2014) 225 FCR 290; [2014] FCAFC 37 Georgeski v Owners Corporation SP 49833 (2004) 62 NSWLR 534; [2004] NSWSC 1096 Hallen v Runder (1834) 149 ER 1080 Hellawell v Eastwood (1851) 155 ER 554 Hobson v Gorringe [1897] 1 Ch 182 Lee v Gaskell (1876) 1 QBD 700 Lees & Leech Pty Ltd v Commissioner of Taxation (1997) 73 FCR 136; [1997] FCA 404 Leigh v Taylor [1902] AC 157 Litz v National Australia Bank Ltd (1986) Qld Conv R 54-229 London and Westminster Loan and Discount Co Ltd v Drake (1859) 141 ER 664 McDonald's Australia Ltd v Chief Commissioner of State Revenue [2005] NSWSC 6; (2005) 58 ATR 260 Melluish v BMI (No 3) Ltd [1996] AC 454 Metal Manufactures Ltd v Commissioner of Taxation [1999] FCA 1712 National Australia Bank Ltd v Blacker (2000) 104 FCR 288; [2000] FCA 1458 National Dairies WA Ltd v Commissioner of State Revenue (2001) 24 WAR 70; [2001] WASCA 112 Poole's case (1703) 91 ER 320 Power Rental Op Co Australia, LLC v Forge Group Power Pty Ltd (in liq) (recs and mgrs apptd) (2017) 93 NSWLR 765; [2017] NSWCA 8 Re French Caledonia Travel Service Pty Ltd (in liq) (2003) 59 NSWLR 361; [2003] NSWSC 1008 Reid v Smith (1905) 3 CLR 656; [1905] HCA 54 Sparks v Hobson [2018] NSWCA 29; (2018) 361 ALR 115 Spencer v The Commonwealth (1907) 5 CLR 418; [1907] HCA 82 Spyer v Phillipson [1931] 2 Ch 183 Tasty Chicks Pty Ltd v Chief Commissioner of State Revenue of the State of New South Wales (2011) 245 CLR 446; [2011] HCA 41 TEC Desert Pty Ltd v Commissioner of State Revenue (Western Australia) (2010) 241 CLR 576; [2010] HCA 49 The Commissioner of Taxation of the Commonwealth of Australia v St Helens Farm (ACT) Pty Ltd (1981) 146 CLR 336; [1981] HCA 4 Vopak Terminal Darwin Pty Ltd v Natural Fuels Darwin Pty Ltd (Subject to Deed of Company Arrangement) [2009] FCA 742; (2009) 258 ALR 89 Vopak Terminals Australia Pty Ltd v Commissioner of State Revenue (2004) 12 VR 351; [2004] VSCA 10 Winston-Smith v Chief Commissioner of State Revenue [2019] NSWCA 75 Texts Cited: B Edgeworth, Butt's Land Law (7th ed, 2017, Thomson Reuters) C Harpum, S Bridge and M Dixon, Megarry & Wade The Law of Real Property (7th ed, 2008, Sweet & Maxwell) J G Fleming, The Law of Torts (10th ed, 2009, Thomson Reuters) P Butt, "Conveyancing and Property: Selling Land Separately from Fixtures" (2000) 74 ALJ 130 P McMahon, "Legal Nature of a Tenant's Interest in its Fixtures" (2016) 90 ALJ 370 S Hepburn and S Jaynes, "The Nature and Scope of Rights of Removal" (2013) 2 Prop L Rev 123 Category: Principal judgment Parties: SPIC Pacific Hydro Pty Ltd (Plaintiff) Chief Commissioner of State Revenue (Defendant) Representation: Counsel: D Batt QC, P Herzfeld (Plaintiff) R Seiden SC, D Woods (Defendant)