Chief Commissioner of State Revenue v Tasty Chicks Pty Ltd

The appeal before the New South Wales Court of Appeal concerned payroll tax assessments made by the Chief Commissioner of State Revenue against Tasty Chicks Pty Ltd and other related entities. The dispute arose from the Chief Commissioner's determination that these entities constituted a grouped company for payroll tax purposes, and his subsequent disallowance of their objection to these assessments. The primary judge had previously reviewed the Chief Commissioner's decision.

The court was required to determine whether the Chief Commissioner had erred in his decision to group the companies and, crucially, in his exercise of discretion under the relevant provisions of the *Pay-roll Tax Act 1971* and the *Taxation Administration Act 1996* not to exclude certain businesses from the group. This involved considering whether employees of a service provider performed their duties solely or mainly in connection with another business, and whether the businesses were carried on substantially independently of each other. The differing legislative provisions applicable over the six-year assessment period also necessitated separate consideration of the Chief Commissioner's decisions for distinct periods.

The Court of Appeal allowed the appeal in part, setting aside the judgment of the primary judge. It remitted the review of the Chief Commissioner's determination for the period 1 July 2001 to 30 June 2003, specifically concerning the exercise of discretion under the former s 16H of the *Pay-roll Tax Act 1971*, back to the Equity Division for further hearing and determination. However, the application for review in respect of assessments for the periods 1 July 2003 to 30 June 2007 was dismissed. The court also made orders regarding the extension of time for filing a notice of contention and directed the parties to lodge submissions on costs.