KinCare Community Services Limited v Chief Commissioner of State Revenue [2019] NSWSC 182

Supreme Court New South Wales

Medium Neutral Citation: KinCare Community Services Limited v Chief Commissioner of State Revenue [2019] NSWSC 182 Hearing dates: 13,14,15 and 16 August 2018 Date of orders: 06 March 2019 Decision date: 06 March 2019 Jurisdiction: Equity Before: Payne J Decision: (1) Application allowed. (2) Objection decision revoked. (3) The assessments of payroll tax to KinCare Community Services Limited in the 2009, 2010, 2011, 2012, 2013 and 2014 years are revoked. (4) Remit the matter to the Commissioner to issue assessments in accordance with these reasons. (5) The Commissioner pay KinCare's costs of the application. Catchwords: TAXES AND DUTIES – pay-roll tax – liability to taxation – arrangements affecting liability to tax – objections and appeals – collection and recovery of tax

TAXES AND DUTIES – Payroll Tax Act 2007 (NSW), Sch 2 cl 12 – transitional provisions relating to the continuation of exemptions under s 10 of the repealed Payroll Tax Act 1971 (NSW)

TAXES AND DUTIES – meaning of "non-profit organisation" – whether a "non-profit organisation" – where constitution contained an express restriction on distribution of profits to members – where no distribution of profits were made to members – where there were transactions with related entities that received incidental benefits – where alleged that transactions were not arm's length and on commercial terms – where alleged that the organisation was "carried on for the benefit or gain of particular individuals"

TAXES AND DUTIES – meaning of "public benevolent institution" – whether a "public benevolent institution" – whether benevolence was directed to the public at large – whether benevolence was directed to the profit or gain of particular individuals