Downer EDI Engineering Pty Ltd v Chief Commissioner of State Revenue [2019] NSWSC 743

Supreme Court New South Wales

Medium Neutral Citation: Downer EDI Engineering Pty Ltd v Chief Commissioner of State Revenue [2019] NSWSC 743 Hearing dates: 26 February 2019 Date of orders: 21 June 2019 Decision date: 21 June 2019 Jurisdiction: Equity Before: Payne J Decision: (1) Application allowed. (2) Assessments for payroll tax issued to the plaintiff for the years ended 2010, 2011, 2012 and 2013 are revoked. (3) The defendant issue the plaintiff with a replacement Notice of Assessment for the relevant financial year in respect of each of the Notices of Assessment referred to in (2) above, as if the objection lodged by the plaintiff under s 86 of the Taxation Administration Act 1996 (NSW) had been allowed in whole. (4) The defendant pay the plaintiff's costs as agreed or assessed. Catchwords: TAXES AND DUTIES – payroll tax – liability to taxation – arrangements affecting liability to tax – objections and appeals – review of assessments pursuant to s 97(4) of the Taxation Administration Act 1996 (NSW)

TAXES AND DUTIES – interpretation of s 32(2)(a) of the Payroll Tax Act 2007 (NSW) – whether subcontracts were excluded from being relevant contracts – whether supply of services by subcontractors under the subcontract was ancillary to the supply of goods – meaning of "supply" – meaning of "under the contract" – meaning of "ancillary" – whether Smith's Snackfood Company v Chief Commissioner of State Revenue [2013] NSWCA 470 is distinguishable

TAXES AND DUTIES – interpretation of s 32(2)(d)(i) of the Payroll Tax Act 2007 (NSW) – whether subcontracts were excluded from being relevant contracts – whether the supply of services by subcontractors was ancillary to the conveyance of goods by means of a vehicle provided by subcontractors – meaning of "conveyance" – whether Smith's Snackfood Company v Chief Commissioner of State Revenue [2013] NSWCA 470 is distinguishable