21St Century Cycle Pty Ltd

The proceeding concerned an application by 21st Century Cycle Pty Ltd (the applicant) against the Commissioner of State Revenue (the respondent) for a review of the respondent's assessment of stamp duty. The dispute arose from the respondent's determination that a transfer of property from a company, 1000 Hills Pty Ltd, to the applicant constituted a dutiable transaction, specifically a "dutiable gift" under the *Duties Act 2000* (Vic). The applicant contended that the transfer was not a dutiable gift, arguing that it was made for consideration, albeit nominal, and therefore fell outside the definition of a dutiable gift.

The primary legal issue before the court was whether the transfer of property from 1000 Hills Pty Ltd to 21st Century Cycle Pty Ltd was a dutiable gift within the meaning of the *Duties Act 2000* (Vic). This required the court to interpret the definition of a "dutiable gift" and consider whether the presence of nominal consideration negated the characterisation of the transaction as a gift. The court also had to determine if the transaction was otherwise dutiable under the Act.

Justice Ian Thompson found that the transfer was indeed a dutiable gift. His Honour reasoned that the consideration paid by the applicant was nominal and did not reflect the true value of the property transferred. The court applied the principle that where a transaction involves the transfer of property for a consideration significantly less than its market value, and the intention is to benefit the recipient, it can be characterised as a gift for stamp duty purposes. The court noted that the Act defines a dutiable gift broadly and that the substance of the transaction, rather than its form, was determinative.

The application was dismissed, and the Commissioner's assessment of stamp duty was upheld.