Grain Growers Limited v Chief Commissioner of State Revenue (NSW) [2016] NSWCA 359

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Grain Growers Limited v Chief Commissioner of State Revenue (NSW) [2016] NSWCA 359 Hearing dates: 11 May 2016 Decision date: 15 December 2016 Before: Bathurst CJ at [1]; Beazley P at [2]; Leeming JA at [133] Decision: Appeal dismissed with costs. Catchwords: TAXATION – payroll tax – charities – non-profit entity claiming exemption from payroll tax pursuant to s 48 of the Payroll Tax Act 2007 (NSW) – where charitable purpose the advancement of the grain industry – where employees engaged in information, technical and analytical services – whether employees engaged in work of a kind ordinarily performed in connection with the charitable purpose of the institution

STATUTORY INTERPRETATION – construction of s 48 of the Payroll Tax Act 2007 (NSW) – phrase "work of a kind ordinarily performed in connection with the … charitable … purposes of the institution" – whether s 48(2) requires assessment of work performed by comparable institutions – whether such a construction would produce absurdity – whether such a construction would preclude new or innovative charitable activities

STATUTORY INTERPRETATION – words used in legislation to be construed within their statutory context – utility of reference to the construction of particular words within a different statutory context

STATUTORY INTERPRETATION – legislative history – utility of legislative history where provisions substantially amended Legislation Cited: Income Tax Assessment Act 1997 (Cth) Pay-roll Tax (Further Amendment) Act 1977 (NSW) Payroll Tax Act 1971 (NSW) Payroll Tax Act 2007 (NSW) State Revenue Legislation Amendment Act 2008 (NSW) State Revenue Legislation Amendment Act 2008 (NSW) Taxation Administration Act 1997 (NSW) Cases Cited: Alcan (NT) Alumina Pty Ltd v Commissioner of Territory Revenue (2009) 239 CLR 27; [2009] HCA 41 Bermingham v Corrective Services Commission of New South Wales (1988) 15 NSWLR 292 Cascade Brewery Company Pty Ltd v Federal Commissioner of Taxation (2006) 153 FCR 11; [2006] FCA 821 Central Bayside General Practice Association Ltd v Commissioner of State Revenue (2006) 228 CLR 168; [2006] HCA 43 Commissioners for Special Purposes of the Income Tax v Pemsel [1891] AC 531 Commissioners of Inland Revenue v Yorkshire Agricultural Society [1928] 1 KB 611 Commonwealth v Spaul (1987) 16 FCR 292 Compagnie Francaise D'Assurance Pour le Commerce Exterieur v Sims Group Australia Holdings Ltd [2013] NSWCA 418 Deputy Commissioner of Taxation v Hygienic Lily Ltd (1987) 13 FCR 396 Diethelm Manufacturing Pty Ltd v Federal Commissioner of Taxation (1993) 44 FCR 450; [1993] FCA 606 Federal Commissioner of Taxation v Chubb Australia Ltd (1995) 56 FCR 557 Federal Commissioner of Taxation v Consolidated Media Holdings Ltd (2012) 250 CLR 503; [2012] HCA 55 Federal Commissioner of Taxation v The Hunger Project Australia (2014) 221 FCR 302; [2014] FCAFC 69 Federal Commissioner of Taxation v Wade (1951) 84 CLR 105 Federal Commissioner of Taxation v Word Investments Ltd (2007) 164 FCR 194; [2007] FCAFC 171 Federal Commissioner of Taxation v Word Investments Ltd (2008) 236 CLR 204; [2008] HCA 55 Hoy v Coffs Harbour City Council [2016] NSWCA 257 Lansell House Pty Ltd v Federal Commissioner of Taxation (2011) 190 FCR 354; [2011] FCAFC 6 Ngurratjuta Pmara/Ntjarra Aboriginal Corporation v Commissioner for Taxes (2000) 44 ATR 217; [2000] NTSC 25 Nowegijick v The Queen (1983) 144 DLR (3d) 193 Rail Corporation New South Wales v Brown (2012) 82 NSWLR 318; [2012] NSWCA 296 Simpson v Stratton (1970) 125 CLR 138; [1970] HCA 45 Smith v Federal Commissioner of Taxation (1987) 164 CLR 513; [1987] HCA 48 The Queen v Khazaal (2012) 246 CLR 601; [2012] HCA 26 Vancouver Society of Immigrant and Visible Minority Women v Minister of National Register [1999] 1 SCR 10 Texts Cited: GE Dal Pont's Law of Charity (2010, LexisNexis Butterworths) P Herzfeld, T Prince and S Tully, Interpretation and Use of Legal Sources (2013, Thomson Reuters) Category: Principal judgment Parties: Grain Growers Limited (Appellant) Chief Commissioner of State Revenue (Respondent) Representation: Counsel: J Batrouney QC and J Gatland (Appellant) R L Seiden SC and S Kaur-Bains (Respondent)