Bulzomi v Commissioner of State Revenue

The dispute in *Bulzomi v Commissioner of State Revenue* concerned the Commissioner's assessment of stamp duty on a transfer of shares. The taxpayer, Mr Bulzomi, sought to have the assessment set aside. The matter came before the High Court of Australia.

The central legal issue before the High Court was whether the transfer of shares constituted a dutiable transaction under the *Stamps Act 1958* (Vic) (the Act). Specifically, the court had to determine if the transfer was made in connection with a "change in beneficial ownership" of the shares, as defined by the Act, or if it was merely a formal transfer of legal title without a corresponding change in beneficial ownership.

The High Court held that the transfer of shares was not a dutiable transaction. Their Honours reasoned that the beneficial ownership of the shares had not changed; rather, the transfer was a formal step to give effect to an existing beneficial ownership. The court applied the principle that stamp duty is levied on transactions that effect a change in beneficial ownership, not on mere changes in legal title where beneficial ownership remains unaltered. The court found that the evidence did not support the Commissioner's contention that a change in beneficial ownership had occurred.