CHIEF COMMISSIONER OF LAND TAX v MRC DEVELOPMENTS PTY LTD [1995] NSWCA 73

CHIEF COMMISSIONER OF LAND TAX v MRC DEVELOPMENTS PTY LTD

SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL

HANDLEY, SHELLER and POWELL JJA 16 May 1995, 16 May 1995 [1995] NSWCA 73

Land Tax — Residential building — Owned by company — Reduction of land tax otherwise payable — When residential units occupied by persons owning shares — When person occupying has an exclusive right to occupy "by virtue of his shares".

Words and Phrases — "by virtue of his shares" Land Tax Act 1956 s3A

Powell JA At all material times, the Respondent, MRC Developments Pty Ltd, was registered as the proprietor of the lands upon which is erected a building known as 158 Wolseley Road, Point Piper, ("the subject land"), which building is a residential building which, prior to its being acquired by the Respondent, had been converted into two self-contained residential flats, occupying respectively the ground floor and the first floor, and a small area, apparently sub- divided into one or more rooms, located beneath two garages which were used by the occupiers of the residential flats.

At all material times, the issued capital of the Respondent was $6,000.00 divided into 3000 shares of $2.00 each, those shares being held by Combe Martin Pty Ltd ("Combe Martin") and Messrs EA O' Halloran and R McLeod, Combe Martin holding some 2,998 such shares and Messrs O'Halloran and McLeod holding one share each, the latter shares having originally been the subscriber shares.

At all material times, the 3,000 issued shares in the capital of the Respondent were divided into three classes known as "M" class, "R" class and "C" class, shares, but, despite being so divided, the several classes of shares had no differential rights which affect the outcome of the present Appeal.

At all relevant times, the ground floor, and first floor, residential flats, to which I have earlier referred, were occupied respectively as his principal residence by Messrs JM Page - he being the person entitled to the beneficial interest in the "M" class - shares and CD Page - he being the person who had the beneficial interest in the "C" class shares. Mr R J Page - he being the person entitled to the beneficial interest in the "R" class shares - appears, at all relevant times, to have lived in Vaucluse. Each of Combe Martin and Messrs O' Halloran and McLeod held such shares as it, or he, did hold as a bare trustee for the persons beneficially entitled to the shares in question.