Seovic Engineering Pty Ltd v Chief Commissioner of State Revenue [2015] NSWCA 242

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Seovic Engineering Pty Ltd v Chief Commissioner of State Revenue [2015] NSWCA 242 Hearing dates: 4 August 2015 Decision date: 20 August 2015 Before: Beazley P at [1]; Macfarlan JA at [2]; Meagher JA at [3] Decision: 1. Dismiss the summons seeking leave to appeal. 2. Applicants pay the respondent's costs of that summons. Catchwords: TAX – payroll tax – Chief Commissioner's de-grouping discretion under Payroll Tax Act 2007 (NSW), s 79 – whether Appeal Panel erred in law in concluding that precondition in s 79(2) not satisfied – whether precondition in s 79(2) satisfied when it is just and reasonable to exclude persons from a group in order to alleviate harsh consequences of grouping provisions – whether matters required to be considered when addressing that precondition include presence or absence of artificial arrangements to avoid duty; the splitting of existing business and other stratagems; and/or commercial arm's-length terms of dealings between members Legislation Cited: Civil and Administrative Tribunal Act 2013 (NSW), ss 62, 80, 83 Payroll Tax Act 2007 (NSW), ss 71, 72, 74, 79 Taxation Administration Act 1996 (NSW), s 96 Cases Cited: Baxter v Chief Commissioner of Pay-Roll Tax (1986) 7 NSWLR 122 Commissioner of Pay-Roll Tax v R G Elsegood & Co Pty Ltd [1983] 1 NSWLR 223 Commissioner of Stamps v Garrett F Hunter Pty Ltd (1997) 69 SASR 275 Chief Commissioner of State Revenue v Tasty Chicks Pty Ltd [2012] NSWCA 181; 87 ATR 880 FCT v Consolidated Media Holdings Ltd [2012] HCA 55; 250 CLR 503 R G Elsegood (Sales) Pty Ltd v Commissioner of Pay-Roll Tax (NSW) (1982) 12 ATR 750 Seovic Civil Engineering Pty Ltd v Chief Commissioner of State Revenue [2014] NSWCATAD 52 Tasty Chicks Pty Ltd v Chief Commissioner of State Revenue of the State of New South Wales [2011] HCA 41; 245 CLR 446 Thiess v Collector of Customs [2014] HCA 12; 250 CLR 664 Category: Principal judgment Parties: Seovic Engineering Pty Ltd (First Applicant) Seovic Civil Engineering Pty Ltd (Second Applicant) Exell Management Pty Ltd (Third Applicant) Chief Commissioner of State Revenue (Respondent) Representation: Counsel: I Young with Arthur Korakis (Applicants) M Richmond with B L Jones (Respondent)