Australian Aqua Air Pty Ltd v Chief Commissioner of State Revenue [2009] NSWADT 239

CITATION: Australian Aqua Air Pty Ltd v Chief Commissioner of State Revenue [2009] NSWADT 239

DIVISION: Revenue Division

APPLICANT Australian Aqua Air Pty Ltd PARTIES: RESPONDENT Chief Commissioner of State Revenue

FILE NUMBER: 086065

HEARING DATES: 27 July 2009

SUBMISSIONS CLOSED: 11 August 2009

DATE OF DECISION: 17 September 2009

BEFORE: Verick A - Judicial Member

CATCHWORDS: Costs

Payroll Tax Act 2007 LEGISLATION CITED : Administrative Decisions Tribunal Act 1997 Administrative Decisions Tribunal Amendment Act 2008 Victorian Civil and Administrative Tribunal Act 1998

CASES CITED: Salon Today Pty Limited v M.M.I.R. Pty Limited [2009] NSWADT 71 Murray v Bayside CC [1999] VCAT 1327

APPLICANT A M Davis, solicitor REPRESENTATION: RESPONDENT I Latham, barrister

ORDERS: The application for costs is dismissed

REASONS FOR DECISION

1 The applicant lodged an application on 17 July 2008 for review of a decision made by the respondent to disallow the applicant's objection to payroll tax assessments for the financial years ended 30 June 2003 to 2006.

2 The issue in dispute related to certain contractors who marketed goods supplied by the applicant. Under the contractor provisions contained in Division 7 of Part 3 of the Payroll Tax Act 2007 ("the Act") contractors are taken to be employees and payments made under contracts to contractors are taken to be wages for payroll tax purposes. However, there are exemptions to this general rule. One of these exemptions, provided under s 32(2)(d)(iii) of the Act, relates to contracts under which a person is supplied services for or in relation to the door-to-door sale of goods solely for domestic purposes. Payments made under such a contract are exempt from payroll tax.