Grain Growers Limited v Chief Commissioner of State Revenue [2015] NSWSC 925

Supreme Court New South Wales

Medium Neutral Citation: Grain Growers Limited v Chief Commissioner of State Revenue [2015] NSWSC 925 Hearing dates: 4 – 5 June 2015 Decision date: 14 July 2015 Jurisdiction: Equity Division - Revenue List Before: Black J Decision: Held that wages paid or payable by Grain Growers to employees in some activities exempt from payroll tax. Held that wages paid or payable by Grain Growers to employees working in the successor functions to the BRI and Agrecon companies, and to management and administrative employees partly supporting those functions are not exempt from payroll tax. Parties to make further submissions as to the form of orders to give effect to Grain Growers' partial success in the appeal and as to costs. Catchwords: CHARITIES – charitable purposes – other purposes beneficial to public – where company provided services to the agricultural industry – where company's purpose includes promotion of the interests of Australian grain growers – whether company has as its sole or dominant purpose a charitable purpose.

TAXATION – payroll tax – exemptions – where taxpayer a non-profit organisation – whether taxpayer exempt from payroll tax on wages paid to its employees under s 48 of the Payroll Tax Act 2007 (NSW).

TAXATION – payroll tax – exemptions – where taxpayer was involved in the promotion of the agriculture industry – where taxpayer acquired two companies engaged in commercial purposes related to the agriculture industry – whether employees of taxpayer in relation to those businesses are mixed roles engage in work 'of a kind ordinarily performed' for a charitable purpose under s 48(2) of the Payroll Tax Act 2007 (NSW). Legislation Cited: - A New Tax System (Goods and Services Tax) Act 1999 (Cth) - Fringe Benefits Tax Assessment Act 1986 (Cth) - Income Tax Act 1918 (UK) (rep) s 37(1) - Income Tax Assessment Act 1997 (Cth) subdiv 50-B; s 50.5 - Payroll Tax Act (NT) s 9(a) - Pay-roll Tax Act 1971 (NSW) (rep) s 10(2) - Payroll Tax Act 2007 (NSW) ss 48, 48(1), 48(2), - State Revenue Legislation Amendment Act 2008 (NSW) - Statute of Charitable Uses 1601 (Imp) - Supreme Court Act 1970 (NSW) s 19(2) - Taxation Administration Act 1996 (NSW) ss 97, 97(4), 101, 100(3) Cases Cited: - Aid/Watch Inc v Commissioner of Taxation [2010] HCA 42; (2010) 241 CLR 539 - Barby v Perpetual Trustee Company Limited (1937) 58 CLR 316 - Brookton Co-Operative Society Ltd v Federal Commissioner of Taxation (1981) 147 CLR 441 - Canterbury Development Corporation v Charities Commission [2010] 2 NZLR 707 - Central Bayside General Practice Association Ltd v Commissioner of State Revenue [2006] HCA 43; (2006) 228 CLR 168 - Chesterman v Federal Commissioner of Taxation (1925) 37 CLR 317 - Commissioner of Taxation (Cth) v Word Investments Ltd [2008] HCA 55; (2008) 236 CLR 204 - Commissioners for Special Purposes of Income Tax v Pemsel [1891] AC 531 - Cronulla Sutherland Leagues Club Ltd v Federal Commissioner of Taxation (1990) 23 FCR 82 - Crystal Palace Trustees v Minister of Town and Country Planning [1950] 2 All ER 857 - Federal Commissioner of Taxation v Chubb Australia Ltd (1995) 128 ALR 489 - Federal Commissioner of Taxation v Co-Operative Bulk Handling Ltd (2010) 189 FCR 322 - Federal Commissioner of Taxation v Triton Foundation [2005] FCA 1319; (2005) 147 FCR 362 - Glebe Administration Board v Commissioner of Payroll Tax (NSW) (1987) 10 NSWLR 352 - Incorporated Council of Law Reporting of Queensland v Federal Commissioner of Taxation (1971) 125 CLR 659 - Inland Revenue Commissioners v Yorkshire Agricultural Society [1928] 1 KB 611 - Inland Revenue Commissioners v Oldham Training and Enterprise Council (1996) 69 TC 231 - Navy Health Ltd v Federal Commissioner of Taxation [2007] FCA 931; (2007) 163 FCR 1 - Ngurratjuta Pmara/Ntjarra Aboriginal Corporation v Commissioner for Taxes [2000] NTSC 25; (2000) 44 ATR 217 - Ngurratjuta Pmara/Ntjarra Aboriginal Corporation v Commissioner of Taxes [2001] NTCA 4 - Northern NSW Football v Chief Commissioner of State Revenue [2011] NSWCA 51; (2011) 83 ATR 603 - Oppenheim v Tobacco Securities Trust Co Ltd [1951] AC 297 - Pleasants v Attorney-General (UK) (1923) 39 TLR 675 - R (Independent Schools Council) v Charity Commissioner of England and Wales [2011] UKUT 421 - Re Chamber of Commerce and Industry of Western Australia (Inc) and Commissioner of State Revenue [2012] WASAT 146 - Re Queenstown Lakes Community Housing Trust [2011] 3 NZLR 502 - Re Smith [1932] 1 Ch 153 - Royal Australian College of Surgeons v Commissioner of Taxation (Cth) (1943) 68 CLR 436 - Royal National Agricultural and Industrial Association v Chester (1974) 3 ALR 486 - Tasmanian Electronic Commerce Centre Pty Ltd v Commissioner of Taxation [2005] FCA 439; (2005) 142 FCR 371 - Tasty Chicks Pty Ltd v Chief Commissioner of State Revenue [2011] HCA 41; (2011) 245 CLR 446 - Thompson v Federal Commissioner of Taxation (1959) 102 CLR 315 - Victorian Women Lawyers' Association Inc v Federal Commissioner of Taxation [2008] FCA 983; (2008) 170 FCR 318 Category: Principal judgment Parties: Grain Growers Limited (Plaintiff) Chief Commissioner of State Revenue (Defendant) Representation: Counsel: J Batrouney QC/J Gatland (Plaintiff) R L Seiden SC/S Kaur-Bains (Defendant)