Johnson and Davenport v Commissioner for Act Revenue (Administrative Review)

In the matter of Johnson and Davenport v Commissioner for ACT Revenue, the applicants sought to have a decision by the Commissioner for ACT Revenue reviewed by the Australian Capital Territory Civil and Administrative Tribunal. The decision related to an assessment of land tax under the Land Tax Act 2004, penalty tax under the Taxation Administration Act and interest under the Land Tax Act. The applicants argued that the decision to refuse to remit interest, pursuant to section 36(1) of the Land Tax Act, was not a decision reviewable by this tribunal. The applicants contended that the land tax should not apply because the income generated by the occupation of the property was insufficient to generate a profit after deducting rates, land tax, insurance, and maintenance costs. The Tribunal found that the applicants did not intend to create a legal relationship with the occupants, and the arrangement was informal and friendly. The Tribunal also found that the applicants did not know of their obligations under the Land Tax Act at the time, and there was no established liability for land tax. However, the Tribunal held that the transaction was caught by section 9(1) of the Land Tax Act, and the payments made were rent. The Tribunal confirmed the decision of the Commissioner for ACT Revenue, subject to an adjustment to the period of assessment of land tax.

The final orders of the Tribunal were that the decision of the respondent of 5 July 2016 was varied by allowing the objection of the applicant in respect of the period for quarter 1 of 2012-2013, with the effect that land tax is not payable for this period, and the decision under review was otherwise confirmed.