TAB Ltd v Commissioner of Taxation [2005] NSWSC 552

New South Wales Supreme Court

CITATION : TAB Ltd v Commissioner of Taxation [2005] NSWSC 552

HEARING DATE(S) : 11/04/05, 03/06/05

JUDGMENT DATE : 14 June 2005

JUDGMENT OF : Gzell J

DECISION : TAB entitled to declarations that refunds are excluded from total amounts wagered whether paid or not and dividends when declared are included in total monetary prizes whether paid or not.

CATCHWORDS : TAXES AND DUTIES - Goods and Services Tax - Gambling supplies - Calculation of net profits from gambling - Total amounts wagered less total monetary prizes - Whether unpaid refunds excluded from total amounts wagered - Acceptance of a bet on outcome of gambling event is a gambling supply - Race, game or other event for which there is an outcome is a gambling event - Whether terminated totalizators, scratchings, abandonment, postponement, no-races, walkovers, or no backings mean no outcome or no relationship to an outcome - Whether a New Tax System (Goods and Services Tax) Act 1999 (Cth), Div 126 is an exclusive code for gambling supplies - Whether adjustments are limited to GST on non-gambling supplies - Whether payment of a refund in a subsequent tax period can constitute an adjustment - Whether dividends declared but unpaid are excluded from total monetary prizes - TAB Rules prevent payment of dividend or refund on cash bets without presentation of a betting ticket - Whether TAB is liable to pay a dividend on declaration or on presentation of a betting ticket - Refunds and dividends unpaid after 12 months become the property of TAB under the Totalizator Act 1997, s 75 - Does windfall arise without GST consequence

A New Tax System (Goods and Services Tax) Act 1999 (Cth) LEGISLATION CITED : Totalizator Act 1997 TAB Totalizator Rules