Oak Brick Investment Pty Ltd & Anor v Chief Commissioner of State Revenue [2016] NSWSC 1039

Supreme Court New South Wales

Medium Neutral Citation: Oak Brick Investment Pty Ltd & Anor v Chief Commissioner of State Revenue [2016] NSWSC 1039 Hearing dates: 29 June 2016 Decision date: 29 July 2016 Before: White J Decision: Order that the defendant's assessment made on 22 October 2014 that the plaintiffs are liable under s 107 of the Duties Act 1997 (NSW) for duty of $299,155 plus interest on the agreement dated 3 December 2013 between the plaintiffs, XZ International Holding Pty Ltd, Zhen Xin Zhong and Mo Xia be revoked. Catchwords: TAXES AND DUTIES —Section 107 of the Duties Act 1997 — Plaintiffs entered into a deed granting a call option to require a vendor to sell to them dutiable property — Plaintiffs entered into an agreement to rescind the deed on a third party entering into a contract to purchase the dutiable property from the vendor — Whether plaintiffs are to be treated as having assigned their right under the call option — Plaintiffs did not assign their rights under the call option — Plaintiffs did not nominate a purchaser on or in connection with the exercise of a call option — Assessment that plaintiffs liable for call option assignment duty revoked Legislation Cited: Duties Act 1997 (NSW) State Revenue Legislation Amendment Act 2005 Texts Cited: The Law of Options and Other Pre-Emptive Rights, Farrands, LawBook Co, 2010 Category: Principal judgment Parties: Oak Brick Investment Pty Ltd as trustee for The Zhi Family Trust (1st Plaintiff) Mercury Resources Pty Ltd (2nd Plaintiff) Chief Commissioner of State Revenue (Defendant) Representation: Counsel: A Ogborne (Plaintiffs) S Balafoutis with R Clarke (Defendant)