Chief Commissioner of State Revenue v E Group Security Pty Ltd (No 2) [2022] NSWCA 259

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Chief Commissioner of State Revenue v E Group Security Pty Ltd (No 2) [2022] NSWCA 259 Hearing dates: 19 October 2022 Date of orders: 13 December 2022 Decision date: 13 December 2022 Before: Brereton JA at [1] Simpson AJA at [24] Griffiths AJA at [25] Decision: (1) The appeal is allowed, with costs. (2) The costs order made below on 13 October 2021 is set aside and in lieu thereof the defendant is ordered to pay 50% of the plaintiff's costs of the proceeding. (3) The parties have leave to apply within 14 days hereof if they seek a variation of the costs orders in orders (1) or (2) above. (4) The matter is remitted to the appellant to reassess the respondent's payroll tax liability for the 1 July 2015 to 30 June 2018 payroll tax years in conformity with the reasons of the Court. Catchwords: TAXES AND DUTIES – Payroll tax liability – Employment agents – Whether arrangements between related entities engaged "employment agency contract" provisions in the Payroll Tax Act 2007 (NSW) for the purposes of assessing payroll tax liability Legislation Cited: Corporations Act 2001 (Cth) Industrial Relations Act 1996 (NSW) Payroll Tax Act 2007 (NSW) Security Industry Act 1997 (NSW) Taxation Administration Act 1996 (NSW) Taxation Administration Bill 1996 (NSW) Workers Compensation Act 1987 (NSW) Cases Cited: Adams Bidco Pty Ltd v Chief Commissioner of State Revenue [2019] NSWSC 702 Antegra Pty Ltd v Chief Commissioner of State Revenue [2021] NSWSC 107 Australian Competition and Consumer Commission v J Hutchinson [2022] FCA 98 Chief Commissioner of State Revenue v E Group Security Pty Ltd [2022] NSWCA 115 Construction, Forestry, Maritime, Mining and Energy Union v Personnel Contracting Pty Ltd [2022] HCA 1; (2022) 96 ALJR 89 CXC Consulting Pty Ltd v Commissioner of State Revenue [2013] VSC 492; (2013) 96 ATR 796 E Group Security Pty Ltd v Chief Commissioner of State Revenue [2021] NSWSC 1190 Freelance Global Ltd v Chief Commissioner of State Revenue [2014] NSWSC 127 Re Day [2017] HCA 2; (2017) 340 ALR 368 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 [2019] NSWSC 666 UNSW Global Pty Ltd v Chief Commissioner of State Revenue [2016] NSWSC 1852; 102 ATR 577 Winston-Smith v Chief Commissioner of State Revenue [2018] NSWSC 773 Category: Principal judgment Parties: Chief Commissioner of State Revenue (Appellant) E Group Security Pty Ltd (Respondent) Representation: Counsel: S Balafoutis SC, A Byrne and N Gollan (Appellant) J Hmelnitsky SC and D Lewis (Respondent)