Winday International Pty Ltd v Chief Commissioner of State Revenue [2016] NSWCATAD 270

Civil and Administrative Tribunal New South Wales Medium Neutral Citation: Winday International Pty Ltd v Chief Commissioner of State Revenue [2016] NSWCATAD 270 Hearing dates: 21 June 2016 Date of orders: 23 November 2016 Decision date: 23 November 2016 Jurisdiction: Administrative and Equal Opportunity Division Before: N S Isenberg, Senior Member Decision: The decision under review is affirmed Catchwords: REVENUE LAW - Payroll Tax Act 2007 – Division 7 contractor provisions - relevant contract - Division 8 Employment agents - employment agency contract - - onus of taxpayer. Legislation Cited: Administrative Decisions Review Act 1997 Civil and Administrative Tribunal Act 2013 Health Insurance Act 1973 (Cth) Payroll Tax Act 2007 Taxation Administration Act 1996 Cases Cited: Freelance Global Ltd v Chief Commissioner of State Revenue [2014] NSWSC 127 Levitch Design Associates Pty Ltd ATF Levco Unit Trust v Chief Commissioner of State Revenue [2014] NSWCATAD 215 Category: Principal judgment Parties: Winday International Pty Ltd (Applicant) Chief Commissioner of State Revenue (Respondent) Representation: Counsel: A Rider (Respondent)

Solicitors: Vale Legal Pty Ltd (Applicant) Crown Solicitors Office (Respondent) File Number(s): 1510244

REASONS FOR DECISION

Background 1. The Applicant, Winday International Pty Ltd, (Winday) carries on a business which provides a radiology facility including the provision of radiological plant and equipment, medical supplies and semi-professional, non-professional, managerial and administrative staff. 2. On 3 February 2014, the Respondent, the Chief Commissioner for State Revenue (the Commissioner) issued assessment notices to Winday for payroll tax, interest and penalty tax for the financial years ended 30 June 2008 to 2013 (Tax Years) (Assessments). Winday objected to the Assessments and the objection was disallowed. Winday applied to the Tribunal to review of the objection decision. 3. The Commissioner's position is that the objection decision and Assessments are correct and payments by Winday to certain radiologists are subject to payroll tax under either the contractor provisions in Division 7 of Part III of the Payroll Tax Act 2007 (the Act) or the employment agents provisions in Division 8. 4. Winday's position is that there were no relevant payments by Winday to the radiologists and if there were payments then neither the contractor provisions nor the employment agents provisions apply to create a payroll tax liability.