Godolphin Australia Pty Ltd v Chief Commissioner of State Revenue [2022] NSWSC 430

Supreme Court New South Wales

Medium Neutral Citation: Godolphin Australia Pty Ltd v Chief Commissioner of State Revenue [2022] NSWSC 430 Hearing dates: 16, 17, 18 August 2021 Date of orders: 13 April 2022 Decision date: 13 April 2022 Jurisdiction: Equity Before: Ward CJ in Eq Decision: 1. Revoke the land tax assessments. 2. Refer the matter to the defendant to assess for land tax excluding the taxable value of the Kelvinside and Woodland properties. 3. Order the defendant to pay the plaintiffs' costs. Catchwords: TAXES AND DUTIES — Land tax — Assessments — Exemption for land used for primary production — Where plaintiff used land for the maintenance of horses both for the purpose of training those horses for racing and for the purpose of selling those horses or their bodily produce, namely their semen — Distinction between dominant use of land and dominant purpose of land Legislation Cited: Income Tax Assessment Act 1936 (Cth), s 6(1) Land Tax Act 2004 (Vic), s 68 Land Tax Management Act 1956 (NSW), ss 3, 10, 10AA Local Government Act 1993 (NSW), s 516 Taxation Administration Act 1996 (NSW), ss 3, 97(1), 100 Valuation of Land Act 1916 (NSW), s 7 Cases Cited: Bayside Council v Karimbla Properties (No 3) Pty Ltd (2018) 99 NSWLR 66; [2018] NSWCA 257 Camden Park Estate Pty Ltd v Commissioner of Land Tax (NSW) (1983) 14 ATR 557 CDPV Pty Ltd v Commissioner of State Revenue (Vic) (2017) ATC 20-616; [2017] VSCA 89 Chief Commissioner of State Revenue (NSW) v Adams Bidco Pty Ltd (2019) 109 ATR 754; [2019] NSWCA 34 Chief Commissioner of State Revenue v Metricon Qld Pty Ltd (2017) 105 ATR 11; [2017] NSWCA 11 Commonwealth v New South Wales (1923) 33 CLR 1; [1923] HCA 34 Council of the City of Newcastle v Royal Newcastle Hospital (1957) 96 CLR 493; [1957] HCA 15 Ferella v Chief Commissioner of State Revenue (NSW) (2014) 96 ATR 875; [2014] NSWCA 378 Illawarra Meat Co Pty Ltd v Commissioner of Land Tax (NSW) [1979] 1 NSWLR 188; (1979) 9 ATR 734 Ingle v Farrand [1927] AC 417 John v Commissioner of Taxation (Cth) (1989) 166 CLR 417; [1989] HCA 5 LeasePlan Australia Ltd v Deputy Federal Commissioner of Taxation (2009)74 ATR 33; [2009] FCA 1309 Leda Manorstead Pty Ltd v Chief Commissioner of State Revenue (2011) 85 ATR 775; [2011] NSWCA 366 Leda Manorstead Pty Ltd v Chief Commissioner of State Revenue (2010) 79 NSWLR 724; [2010] NSWSC 867 Leppington Pastoral Co Pty Ltd v Chief Commissioner of State Revenue (2017) 104 ATR 820; [2017] NSWSC 9 Maraya Holdings Pty Ltd v Chief Commissioner of State Revenue (2013) 97 ATR 818; [2013] NSWCA 408 Minister for Employment and Workplace Relations v Gribbles Radiology Pty Ltd (2005) 222 CLR 194; [2005] HCA 9 News Ltd v South Sydney District Rugby League Football Club Ltd (2003) 215 CLR 563; [2003] HCA 45 Palgo Holdings Pty Ltd v Gowans (2005) 221 CLR 249; [2005] HCA 28 R & D Holdings Pty Ltd v Deputy Commissioner of Taxation (2006) 64 ATR 71; [2006] FCA 981 Stevens v Kabushiki Kaisha Sony Computer Entertainment (2005) 224 CLR 193; [2005] HCA 58 Tweddle v Federal Commissioner of Taxation (1942) 180 CLR 1; [1942] HCA 40 Vartuli v Chief Commissioner of State Revenue (2014) 98 ATR 545; [2014] NSWSC 678 Young v Chief Commissioner of State Revenue (NSW) [2020] NSWSC 330 Category: Principal judgment Parties: Godolphin Australia Pty Ltd (Plaintiff) Chief Commissioner of State Revenue (Defendant) Representation: Counsel: D Russell QC with J Emmett SC TL Wong SC with S Kanagaratnam