Chief Commissioner of State Revenue v Godolphin Australia Pty Ltd [2023] NSWCA 44

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Chief Commissioner of State Revenue v Godolphin Australia Pty Ltd [2023] NSWCA 44 Hearing dates: 29-30 November 2022 Date of orders: 20 March 2023 Decision date: 20 March 2023 Before: Kirk JA at [1] Simpson AJA at [128] Griffiths AJA at [163] Decision: (1) Appeal allowed. (2) Set aside the orders of the Supreme Court made in this matter on 13 April 2022, and in lieu thereof order: (a) The Further Amended Summons is dismissed. (b) Pursuant to s 101(1)(a) of the Taxation Administration Act 1996 (NSW), confirm each of the following: (i) the Land Tax Assessment Notice (Correspondence ID 1703980613) issued by the defendant to the plaintiff on 19 March 2020; and (ii) the Land Tax Assessment Notice (Correspondence ID 1710080522) issued by the defendant to the plaintiff on 20 July 2020. (3) The respondent is to pay the appellant's costs at first instance and on appeal. Catchwords: TAXES AND DUTIES — Land tax — Liability — Exemptions — Exemption for land used for primary production — Whether the dominant use of land was for the maintenance of animals for the purpose of selling them or their natural increase or bodily produce — Land used both for breeding, educating and training horses, and spelling them between races and for the sale of covering services and of progeny — Meaning of "dominant use" — Relationship between use and purpose Legislation Cited: Aboriginal Land Rights Act 1983 (NSW), s 36(1)(b) Income Tax Assessment Act 1936 (Cth), ss 177A, 177D Interpretation Act 1987 (NSW), s 21(1) Land Tax Management Act 1956 (NSW), ss 7, 8, 9, 9AA, 10AA Local Government Act 1993 (NSW), s 118 Supreme Court Act 1970 (NSW), s 75A Taxation Administration Act 1996 (NSW), ss 97(1), 100, 101(1)(a) Valuation of Land Act 1916 (NSW), ss 14A(1), 14CC, 26(1) Valuation of Land Act 1944 (Qld), s 17(1) Cases Cited: AWB Ltd v Cole (2006) 152 FCR 382; [2006] FCA 571 AWB Ltd v Cole (No 5) (2006) 155 FCR 30; [2006] FCA 1234 Baulkham Hills Shire Council v O'Donnell (1990) 69 LGRA 404 Chamwell Pty Ltd v Strathfield Council (2007) 151 LGERA 400; [2007] NSWLEC 114 Chief Commissioner of State Revenue v Adams Bidco Pty Ltd [2019] NSWCA 34 Chief Commissioner of State Revenue v Metricon Qld Pty Ltd (2017) 224 LGERA 236; [2017] NSWCA 11 Commissioner of Taxation of the Commonwealth of Australia v Pratt Holdings Pty Ltd [2005] FCA 1247 Council of the City of Newcastle v Royal Newcastle Hospital (1957) 96 CLR 493; [1957] HCA 15 Federal Commissioner of Taxation v Spotless Services Ltd (1996) 186 CLR 404; [1996] HCA 34 Ferella v Chief Commissioner of State Revenue [2014] NSWCA 378; (2014) 96 ATR 875 Foodbarn Pty Ltd v Solicitor-General (NSW) (1975) 32 LGRA 157 Fox v Percy (2003) 214 CLR 118; [2003] HCA 22 Leda Manorstead Pty Ltd v Chief Cmr of State Revenue (2011) 85 ATR 775; [2011] NSWCA 366 Lee v Lee (2019) 266 CLR 129; [2019] HCA 28 Leppington Pastoral Co Pty Ltd v Chief Commissioner of State Revenue (2017) 104 ATR 820; [2017] NSWSC 9 McHugh v Australian Jockey Club Limited (2014) 314 ALR 20; [2014] FCAFC 45 Minister for Immigration and Border Protection v SZVFW (2018) 264 CLR 541; [2018] HCA 30 New South Wales Aboriginal Land Council v Minister Administering Crown Lands Act (2016) 260 CLR 232; [2016] HCA 50 News Ltd v South Sydney District Rugby League Football Club Ltd (2003) 215 CLR 563; [2003] HCA 45 People for the Plains Inc v Santos NSW (Eastern) Pty Ltd (2017) 220 LGERA 181; [2017] NSWCA 46 Rich v Australian Securities and Investments Commission (2004) 220 CLR 129; [2004] HCA 42 Robinson Helicopter Company Incorporated v McDermott [2016] HCA 22; (2016) 90 ALJR 679 Royal Agricultural Society of New South Wales v Sydney City Council (1987) 61 LGRA 305 Thomason v Chief Executive, Dept of Lands (1995) 15 QLCR 286 Tweddle v Federal Commissioner of Taxation (1942) 180 CLR 1; [1942] HCA 40 Victoria International Container Terminal Ltd v Lunt (2021) 271 CLR 132; [2021] HCA 11 Warren v Coombes (1979) 142 CLR 531; [1979] HCA 9 Woollahra Municipal Council v Banool Developments Pty Ltd (1973) 129 CLR 138; [1973] HCA 65 Young v Chief Commissioner of State Revenue [2020] NSWSC 330 Texts Cited: Second Reading of the State Revenue Legislation Further Amendment Bill (NSW Legislative Council, Parliamentary Debates (Hansard), 29 November 2005 at 20063-20064 Category: Principal judgment Parties: Chief Commissioner of State Revenue (Appellant)