ODDBINS PTY LTD v LIQUOR ADMINISTRATION BOARD OF NSW [1996] NSWCA 409

ODDBINS PTY LTD v LIQUOR ADMINISTRATION BOARD OF NSW

SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL

HANDLEY JA 4 April 1996, 4 April 1996

[1996] NSWCA 409

TAXATION — State turnover taxes — Liquor Act — wholesale and retail licences- statutory provisions for avoidance of double taxation — retail licensee not complying with the statutory provisions — double taxation payable.

The premises at 104 Parramatta Road, Camperdown, the central store of the Oddbins chain, were covered by a retail licence and a wholesale licence issued under s18(3)(a) and s18(3)(c) of the Liquor Act 1982 respectively. Since both licences were held in respect of the same premises, the wholesale licence fee was fixed under s80 (2)(c)(ii). The retail licence attracted a fee based on stock "delivered upon or purchased for" the licensed premises under s80(3). Rather than adopting the scheme provided for by the legislation of acquiring stock under the wholesale licence and then appropriating it to the retail licence as needed, Oddbins acquired stock under the retail licence and then at a later date transferred it to the wholesale licence when it needed to transfer stock to another store holding a retail licence. The Liquor Administration Board assessed additional licence fees of $56,815 for the years 1988-90 in respect of stock the subject of those transfers and the assessment was upheld at first instance.

HELD, dismissing the appeal: (1) The double taxation effect was the result of the appellant not utilising the legislative scheme provided, (2) The Board's power to re-assess licence fees under s83 did not authorise it to modify the basis of taxation prescribed in s80, (3) The relevant liquor had been "delivered upon or purchased for" the premises the subject of the retail licence and the amounts in question were payable.