Affinity Health Ltd v Chief Commissioner of State Revenue [2005] NSWSC 663

New South Wales Supreme Court

Affinity Health Ltd v Chief Commissioner of State Revenue [2005] NSWSC 663 CITATION : This decision has been amended. Please see the end of the judgment for a list of the amendments.

HEARING DATE(S) : 20/06/05

JUDGMENT DATE : 7 July 2005

JURISDICTION : Equity Division

JUDGMENT OF : Gzell J

DECISION : That the Court decide that the acquisition was exempt in place of the Chief Commissioner's decision to the contrary.

CATCHWORDS : TAXES AND DUTIES - Stamp duties - Whether an acquisition of shares in a land rich private company is made on execution of the contract for sale of shares or when the purchaser is entered on the company's register of members - Whether the Duties Amendment (Land Rich) Act 2003, which took effect on the date the Duties Amendment (Land Rich) Bill 2003 was introduced to the Legislative Assembly, should be construed as not applying to acquisitions of interests in land rich landholdings under contracts for sale of shares entered into before that date - Whether the Supreme Court may on a review under the Taxation Administration Act 1996, s 97(1) make a decision in place of that of the Chief Commissioner or whether its powers are limited to the principles for review of a discretion discussed in Avon Downs Pty Ltd v Federal Commissioner of Taxation (1949) 78 CLR 353 and House v The King (1936) 55 CLR 499 - Whether the Chief Commissioner should have determined under the Duties Act 1997, s 119(2) that the application of land rich duty to the acquisition of shares in companies rendered land rich by the Duties Amendment (Land Rich) Act 2003 under a contract for sale of shares executed before its commencement was not just or reasonable and the acquisition was exempt

Duties Act 1997 Duties Amendment (Land Rich) Act 2003 Taxation Administration Act 1996 Income Tax Assessment Act 1936 (Cth) Interpretation Act 1987 LEGISLATION CITED : Income Tax Assessment Act 1936-1944 (Cth) Supreme Court Rules 1970 Stamp Duties Act 1920 Supreme Court Act 1970 Administrative Decisions Tribunal Act 1997