Trust Co of Australia v Chief Commissioner of State Revenue [2006] NSWSC 792

Reported Decision : 66 NSWLR 551 64 ATR 346

New South Wales Supreme Court

CITATION : Trust Co of Australia v Chief Commissioner of State Revenue [2006] NSWSC 792

HEARING DATE(S) : 19/07/06

JUDGMENT DATE : 11 August 2006

JUDGMENT OF : Gzell J

DECISION : Matter remitted to Chief Commissioner for determination in accordance with decision. Taxpayer to pay Chief Commissioner's costs.

CATCHWORDS : TAXES AND DUTIES - Stamp Duties - Agreement to sell properties for specified sum - Rearrangement of transaction - Long term concurrent leases granted to purchaser - Rent for entire terms prepaid - Leases stamped at 3.5% - Options to purchase properties exercised and contracts for sale for balance of specified sum stamped up to 5.5% - Chief Commissioner acts under antiavoidance provision in the Duties Act 1997, s 24, disregards entry into concurrent leases, and assesses duty on unencumbered value of estates in fee simple - Whether dutiable property the subject of the contracts for sale were estates in fee simple or reversionary estates - Whether reversionary estates were created on grant of concurrent leases or on grant of earlier leases - Whether the dutiable values of the reversionary estates created on grant of earlier leases were affected by the agreements to grant concurrent leases - The nature of a concurrent lease - Whether the same principles apply to a grant of a lease over part only of land and a later lease of the entirety - Chief Commissioner entitled to disregard later leases but dutiable property the reversionary estates before grant of the later leases and not estates in fee simple

Duties Act 1997 Taxation Administration Act 1996 Stamp Duties Act 1920 LEGISLATION CITED : Real Property Act 1900 Industrial Arbitration Act 1940 Stamps Act 1958 (Vic) State Revenue Legislation Amendment Bill 2002