Chief Commissioner of State Revenue v Tasty Chicks Pty Ltd

The Chief Commissioner of State Revenue appealed to the Court of Appeal of New South Wales against a decision of Gzell J, which had allowed an appeal by Tasty Chicks Pty Ltd against payroll tax assessments. The dispute concerned the Commissioner's refusal to grant a certificate for de-grouping for payroll tax purposes.

The primary legal issue before the Court of Appeal was whether the Supreme Court, on appeal from the Commissioner's decision, was entitled to substitute its own opinion for that of the Commissioner regarding the satisfaction of the criterion for de-grouping. This involved an interpretation of the appeal provisions under the *Taxation Administration Act*.

The Court of Appeal held that an appeal under section 97 of the *Taxation Administration Act* is an appeal in the proper sense, meaning the appellant must establish an error on the part of the primary decision-maker. The Court reasoned that the criterion for de-grouping involved the Commissioner forming an opinion, and the Supreme Court was not empowered to substitute its own opinion for that of the Commissioner unless the Commissioner's opinion was found to be based on an error of law or fact. The Court found that no such error had been established by Tasty Chicks Pty Ltd.

Consequently, the Court of Appeal allowed the Chief Commissioner's appeal, set aside the judgment and orders of Gzell J, and ordered that the appeal to the Supreme Court from the assessments be dismissed with costs.