E Group Security Pty Ltd v Chief Commissioner of State Revenue [2021] NSWSC 1190

Supreme Court New South Wales

Medium Neutral Citation: E Group Security Pty Ltd v Chief Commissioner of State Revenue [2021] NSWSC 1190 Hearing dates: 1 – 5 and 8 February 2021 Decision date: 22 September 2021 Jurisdiction: Equity Before: Ward CJ in Eq Decision: 1. Pursuant to s 101(1)(a) of the Taxation Administration Act 1996 (NSW), revoke the payroll tax assessments numbered 117241993. 2. Direct that the parties file brief written submissions on the question of costs within 14 days, with a view to dealing with the matter on the papers if possible. Catchwords: TAXES AND DUTIES — Payroll tax — Liability — Employment agents — whether the workers are provided in and for the client's business TAXES AND DUTIES — Payroll tax — Liability — Employment agents — whether arrangements between parent company and subsidiaries are employment agency contracts — interpretation of s 37(1) of the Payroll Tax Act 2007 (NSW) – meaning of "client" — whether the services of workers "procured" by subsidiaries for parent company Legislation Cited: Liquor Act 2007 (NSW), s 77 Payroll Tax Act 2007 (NSW), ss 4, 6, 7, 10, 11, 12, 13(1)(e), 29, 37, 38, 39, 40, 41, 81 Security Industry Act 1997 (NSW), Pt 2 Div 2, ss 4, 6(3), 10, 38, 29B Security Industry Bill 1997 (NSW) Security Industry Regulation 2007 (NSW), Sch 1 Security Industry Regulation 2016 (NSW), cl 7, Sch 1 Taxation Administration Act 1996 (NSW), ss 21, 25, 97, 100(3), 101, Pt 5 Div 1 Taxation Administration Bill 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 (NSW) (2019) 109 ATR 879; [2019] NSWSC 657 Chief Commissioner of State Revenue v Downer EDI Engineering Pty Ltd (2002) 103 NSWLR 772; [2020] NSWCA 126 Chief Commissioner of State Revenue v Incise Technologies Pty Ltd (2004) 56 ATR 82; [2004] NSWADTAP 19 Commissioner of Stamps v Garrett Hunter Pty Ltd (1997) 69 SASR 275 Commissioner of State Revenue (WA) v Placer Dome Inc (2018) 265 CLR 585; [2018] HCA 59 Commissioner of State Revenue v Liquid Rock Constructions Pty Ltd (2012) 87 ATR 921; [2012] VSC 329 Cripps v G & M Dawson Pty Ltd (2006) ANZ ConvR 350; [2006] NSWCA 81 CXC Consulting Pty Ltd v Commissioner of State Revenue (2013) 96 ATR 796; [2013] VSC 492 Dental Corporation Pty Ltd v Moffet (2002) 278 FCR 502; [2020] FCAFC 118 Freelance Global Ltd v Chief Commissioner of State Revenue [2014] ATC 20-445; [2014] NSWSC 127 Hollis v Vabu Pty Ltd (2001) 207 CLR 21; [2001] HCA 44 HRC Hotel Services Pty Ltd v Chief Commissioner of State Revenue (2018) 108 ATR 84; [2018] NSWSC 820 JP Property Services Pty Ltd v Chief Commissioner of State Revenue (2017) 106 ATR 639; [2017] NSWSC 1391 Lease A Leaf Property Pty Ltd v Chief Commissioner of State Revenue (2011) 85 ATR 273; [2011] NSWADTAP 41 N & M Martin Holdings Pty Ltd v Commissioner of Taxation [2020] FCA 1186 Securecorp (NSW) Pty Ltd v Chief Commissioner of State Revenue [2019] NSWSC 744 Southern Cross Group Services Pty Ltd v Chief Commissioner of State Revenue (NSW) (2019) 110 ATR 16; [2019] NSWSC 666 Trust Co of Australia Ltd v Chief Commissioner of State Revenue [2002] NSWADT 21 Tullett Prebon (Australia) Pty Ltd v Purcell [2009] NSWSC 1079 UNSW Global Pty Ltd v Chief Commissioner of State Revenue (2016) 104 ATR 577; [2016] NSWSC 1852 Zuijs v Wirth Bros Pty Ltd (1955) 93 CLR 561; [1955] HCA 73 Texts Cited: New South Wales, Industrial Relations Commission, Reference by the Minister for Industrial Relations pursuant to s.345(4) of the Industrial Relations Act 1991 regarding the transport and delivery of cash and other valuables industry, (February, 1997) Category: Principal judgment Parties: E Group Security Pty Ltd (Plaintiff) Chief Commissioner of State Revenue (Defendant) Representation: Counsel: Mr J Hmelnitsky SC with Mr D Lewis (Plaintiff) Ms R Seiden SC with Mr A Byrne and Ms G Edwards (Defendant)