Newcastle Airport Pty Ltd v Chief Commissioner of State Revenue [2014] NSWSC 1501

Supreme Court New South Wales

Medium Neutral Citation: Newcastle Airport Pty Ltd v Chief Commissioner of State Revenue [2014] NSWSC 1501 Hearing dates: 8 and 9 September 2014 Decision date: 31 October 2014 Jurisdiction: Equity Division Before: White J Decision: Counsel for the plaintiff to bring in short minutes of order in accordance with reasons. Catchwords: TAXES AND DUTIES - payroll tax - assessment for payroll tax - where local councils delegated function of developing and maintaining airport to plaintiff - whether plaintiff's employment of employees or payment of employees' wages for purpose of operating airport were delegated functions or functions incidental thereto - Interpretation Act 1987 (NSW) s 49 - exempt wages - Payroll Tax Act 2007 (NSW) s 58 - whether wages are taken to have been paid or payable by councils because they were paid or payable by plaintiff as councils' delegate and thereby exempt from payroll tax - effect of s 49(6) of Interpretation Act 1987 (NSW) EQUITY - trusts and trustees - powers, duties, rights and liabilities of trustees - trustee's right of exoneration - where plaintiff held moneys on trust for councils - whether wages paid by councils within meaning of Payroll Tax Act 2007 (NSW) s 58 because paid from trust moneys to which councils were beneficially entitled Legislation Cited: Church of England (Bodies Corporate) Act 1938 (NSW) Interpretation Act 1987 (NSW) Local Government Act 1919 (NSW) Local Government Act 1993 (NSW) Pay-roll Tax Act 1971 (NSW) Payroll Tax Act 2007 (NSW) Stamp Duties Act 1920 (NSW) Taxation Administration Act 1996 (NSW) Cases Cited: Agusta Pty Ltd v Provident Capital Ltd [2012] NSWCA 26; (2012) 16 BPR 30,397 Arjon Pty Ltd v Commissioner of State Revenue [2003] VSCA 213; (2003) 8 VR 502 Baker v Archer-Shee [1927] AC 844 Balkin v Peck (1998) 43 NSWLR 706 Blackpool Corporation v Locker [1948] 1 KB 349 Re Reference under s 11 of Ombudsman Act 1976 (1979) 2 ALD 86 Chief Commissioner of Stamp Duties (NSW) v Buckle [1998] HCA 4; (1998) 192 CLR 226 Commissioner of State Revenue v Karingal 2 Holdings Pty Ltd [2003] VSCA 214; (2003) 8 VR 532 CPT Custodian Pty Ltd v Commissioner of State Revenue [2005] HCA 53; (2005) 224 CLR 98 D K L R Holding Co (No. 2) Pty Ltd v Commissioner of Stamp Duties [1980] 1 NSWLR 510 DCC Holdings (UK) Limited v Revenue and Customs Commissioners [2010] UKSC 58; [2011] 1 WLR 44 Federal Commissioner of Taxation v Comber (1986) 10 FCR 88 Glebe Administration Board v Commissioner of Pay-roll Tax (1987) 10 NSWLR 352 Hardoon v Belilios [1901] AC 118 Kemtron Industries Pty Ltd v Commissioner of Stamp Duties (Qld) [1984] 1 Qd R 576 Lemery Holdings Pty Ltd v Reliance Financial Services Pty Ltd [2008] NSWSC 1344; (2008) 74 NSWLR 550 Marshall v Kerr (1993) 67 TC 56 New South Wales Land and Housing Corporation v Navazi [2013] NSWCA 431 Octavo Investments Pty Ltd v Knight (1979) 144 CLR 360 Re Transphere Pty Ltd (1986) 5 NSWLR 309 Williams v Singer [1921] 1 AC 65 Category: Principal judgment Parties: Newcastle Airport Pty Ltd (Plaintiff) Chief Commissioner of State Revenue (Defendant) Representation: Counsel: M Richmond SC with A Hochroth (Plaintiff) C Leggat SC with A Gerard (Defendant) Solicitors: Herbert Smith Freehills (Plaintiff) Crown Solicitor (Defendant) File Number(s): 2013/281117