INTERCORP PTY LTD AS TRUSTEE FOR INTERCORP TRUST and COMMISSIONER OF STATE REVENUE

In the case of Intercorp Pty Ltd as trustee for Intercorp Trust versus the Commissioner of State Revenue, the dispute centred around the interpretation and application of the land tax exemption for primary production businesses in Victoria. The Victorian Court of Appeal was tasked with determining whether the appellant's land, used for intensive horticulture, qualified for the exemption. The appellant argued that its activities constituted primary production, warranting an exemption from land tax, while the Commissioner contended that the land did not meet the threshold for a 'substantial' primary production business.

The central legal issue before the court was the interpretation of the term'substantial' within the context of primary production for the purposes of land tax exemption. The court had to decide whether the activities of the appellant were sufficiently substantial to qualify as a primary production business under the relevant legislation. This involved examining the nature and scale of the horticultural activities, as well as comparing them to the statutory requirements and case law precedents.

The court found that the appellant's activities, while qualifying as primary production, did not constitute a substantial primary production business. The reasoning hinged on the scale and intensity of the horticultural operations, which did not reach the threshold deemed necessary for a 'substantial' business. The court emphasised that the exemption was intended for businesses that engaged in primary production on a significant scale, and the appellant's operations, though legitimate, were not extensive enough to meet this criterion. Consequently, the appellant's application for review was dismissed, and the land tax assessment was upheld.