Benidorm Pty Ltd v Chief Commissioner of State Revenue

The case of Benidorm Pty Ltd versus the Chief Commissioner of State Revenue involved a dispute over stamp duties imposed on a transaction concerning a declaration of trust. Benidorm Pty Ltd, the appellant, challenged the imposition of stamp duty on the grounds that the transaction in question was not dutiable as it merely acknowledged a statutory vesting. The matter was heard in the Supreme Court of New South Wales.

The primary legal issues before the court were whether the declaration of trust constituted a dutiable transaction and, if so, whether it was exempt from stamp duty under the applicable legislation. The court had to determine whether the transaction was subject to stamp duty and, if exempt, whether the nominal duty provisions applied.

The court held that the declaration of trust was not a dutiable transaction as it did not transfer any interest in property. Instead, it merely acknowledged a statutory vesting of the property. As such, the transaction was not subject to stamp duty. Additionally, the court found that the exemption applied, and the nominal duty provisions did not apply, resulting in no stamp duty being payable. The appeal was successful, and the stamp duty imposed was remitted.