Numo Pty Ltd v CSR [2016] VSC 274
Assessments for land tax were issued to the taxpayers (who were related corporations) on a grouped basis. Generally, land tax is assessed by reference to land owned by a taxpayer as at midnight 31 December in the year proceeding the land tax year. However, and in respect of taxpayers who are corporations, s50 of the Land Tax Act 2005 (the Act) provides the Commissioner has discretion to group corporations that are related corporations. If the Commissioner does so, he is to assess them as a single corporation.
The Supreme Court considered whether in order to assess a group of related corporations as a single corporation pursuant to s50(2) of the Act that there was a condition precedent. That condition being, there be a determination by the Commissioner under s50(1) of the Act that he will exercise his discretion to group in force as at midnight on 31 December in the year preceding the land tax year.
On 3 June 2016 the Court upheld the land tax assessments. Croft J held there is no requirement for a determination to group related corporations to be in place as at midnight on 31 December in order to assess the related corporations as a single corporation. Croft J confirmed the Commissioner has the power to issue assessments for land tax based on facts as they exist at midnight on 31 December.
In addition, the Court provided some favourable comments to the effect that challenges to assessments should be brought under the Taxation Administration Act 1997 and not directly in the Supreme Court as the taxpayers also attempted to do in this instance.
