This matter involved a taxpayer acquiring land as well as a number of movable cabins on that land as part of an overall purchase of a tourist park business.
The Commissioner assessed duty on both the value of the land and the cabins. The issue was whether he was entitled to do so in relation to the cabins. Pursuant to section 10(1)(d) of the Duties Act 2000, he would be unless the cabins were classified as “stock-in-trade”. The Tribunal ultimately decided in favour of the Commissioner.
This was based on a finding that the business essentially generated its profits from renting out the cabins to tourists rather than trading the cabins. Accordingly, the cabins were held to be plant and equipment, not stock-in-trade.
