CDPV Pty Ltd & Ors V Commissioner of State Revenue [2017] VSCA 89
The taxpayers objected to the land tax assessments on the basis that the land was exempt under s.66 of the Land Tax Act 2005 as it was used for primary production pursuant to an oral share-farming agreement with a local farmer.
The Supreme Court dismissed the taxpayers' appeal and confirmed the Commissioner's assessments. The taxpayers' subsequently sought leave to appeal to the Court of Appeal.
On 27 April 2017, the Court of Appeal agreed with the Commissioner and held that the question of 'purpose' in the definition of primary production directs attention to both the activities constituting the use and to the purpose of the person engaged in that use. All surrounding circumstances must be taken into account and those circumstances may include the subjective intention of the person engaged in the use of the land.
