Chief Commissioner of Land Tax v Macary Manufacturing Pty Ltd

The Chief Commissioner of Land Tax (the appellant) appealed to the Court of Appeal of New South Wales against a decision concerning land tax assessments issued to Macary Manufacturing Pty Ltd (the respondent). The dispute centred on whether the respondent, as trustee of a discretionary family trust, was the "owner" of certain land for the purposes of the *Land Tax Management Act 1956* (NSW) and whether that land was subject to a "special trust" for particular tax years.

The Court was required to determine the proper construction of the term "owner" under section 3(1) of the *Land Tax Management Act 1956* in the context of a discretionary trust where the trustee was a company. Further, the Court had to consider whether the trust deed, read in conjunction with resolutions passed by the company's directors appointing a "Vesting Day", created a "special trust" for the relevant tax periods, thereby affecting the land tax liability. The interpretation of provisions requiring the computation of time "from" a named day or date was also a key issue.

The Court reasoned that the definition of "owner" in the Act encompassed a trustee. It held that the trust deed, despite its discretionary nature, did not create a "special trust" as defined by the Act for the years in question. The resolutions of the directors, which purported to appoint a Vesting Day, were found not to have the effect of creating a special trust or altering the beneficial interests in a manner that would exempt the land from land tax. The Court applied principles of statutory interpretation to the definition of "owner" and the provisions relating to special trusts, concluding that the respondent, as trustee, was the owner of the land for land tax purposes.

The appeal was allowed with costs.