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Date of judgement | 1 February 2012 |
Proceeding number | 116053 |
Judge(s) | J Block, Judicial Member |
Court or Tribunal | Administrative Decisions Tribunal |
Payroll tax - penalty and interest charged in consequence of a default; consideration of case law and legislation
B & L Linings Pty Ltd & Anor v Chief Commissioner of State Revenue [2008] NSWADTAP 14
Chief Commissioner of State Revenue v Incise Technologies Pty Ltd & Anor [2004] NSWADTAP 19
Downs v. Chief Commissioner of State Revenue [2002] NSWADT 51
Macsif Pty Ltd v. Chief Commissioner of State Revenue [2007] NSWADT 116
Nikaed Pty Ltd v. Chief Commissioner of State Revenue [2005] NSWADT 21
Re Confidential and Commissioner of Taxation [2008] AATA 415
Peco Arts Inc v Hazlitt Gallery Ltd [1983] 3 All ER 193
Trust Co. of Australia v Chief Commissioner of State Revenue [2002] NSWADT 21
The taxpayers in these proceedings, AES Wiring Pty Ltd ("AES") and AKS Distributions Pty Ltd("AKS") (the taxpayers), sought a review of a decision by the Chief Commissioner to impose penalty tax of 25% and the market rate of interest with respect to a failure to pay payroll tax as a "business group" for the period 1 July 2006 to 30 November 2010 ("the relevant period"). The taxpayers did not dispute the primary decision that they be treated as being grouped for the purposes of the Pay-Roll Tax Act 1971, the Taxation Administration Act 1996 ("the TAA"), and the Payroll Tax Act 2007 (the 2007 Act).
The Tribunal was not satisfied that the taxpayers had demonstrated any basis for it to exercise the discretion to remit the interest or penalty tax, and the decisions under review were accordingly affirmed.
AES commenced trading and employing staff in January 2001, and AKS commenced trading and employing staff in June 2006. From the date on which AKS commenced trading, both companies were under the common control and ownership of the same persons and were grouped from that date under the relevant provisions of the TAA (prior to 1 July 2007) or the 2007 Act (from 1 July
2007).
AES had been registered for payroll tax purposes in 2005 following an Office of State Revenue ("OSR") investigation. AKS was registered for payroll tax purposes after an OSR investigation in November 2010 that resulted in the assessments challenged by the taxpayers in the Tribunal proceedings.
The Chief Commissioner issued assessments to both taxpayers which included 25% penalty tax plus the market rate of interest as per the relevant provisions of the TAA, with the premium component of interest being remitted.
The taxpayers submitted that the Tribunal should:
The decision under review was accordingly affirmed.