JOHROSA PTY LTD & COMMISSIONER for ACT REVENUE (Administrative Review)
[2013] ACAT 4
•24 January 2013
ACT CIVIL & ADMINISTRATIVE TRIBUNAL
JOHROSA PTY LTD and COMMISSIONER FOR ACT REVENUE (Administrative Review) [2013] ACAT 4
AT 11 of 2012
Catchwords: ADMINISTRATIVE REVIEW – duty payable on transfer of land – joint venture between related entities – dutiable value - obligation to obtain valuation of land before transfer – penalty on unpaid tax
List of Legislation: Taxation Administration Act 1999, s.31
Tribunal: Mr B. Hatch, Senior Member
Date of Orders: 24 January 2013
Date of Statement of Findings: 24 January 2013
AUSTRALIAN CAPITAL TERRITORY )
CIVIL & ADMINISTRATIVE TRIBUNAL )
AT 11 of 2012
BETWEEN:
JOHROSA PTY LTD
Applicant
AND: COMMISSIONER FOR ACT
REVENUE
Respondent
TRIBUNAL: Mr B. Hatch, Senior Member
DATE: 24 January 2013
ORDER
1. The decision under review is varied by assessing the value of the land at $6.075 million and the applicant is to pay interest as prescribed by the Taxation Administration Act 1999 plus penalties at 50% pursuant to section 31 of the Taxation Administration Act.
..................………………………………..
Ms L. Crebbin, General President for and
on behalf of Mr B. Hatch, Senior Member
STATEMENT OF FINDINGS
This is an application for a review of a decision with respect to the amount of duty payable in relation to the transfer of Block 3 Section 69 Division of Lyons, now known as Block 5 (the land). The decision under review was made on 14 February 2012.
The land was transferred from the Commissioner for Social Housing to the applicant. The agreement to purchase the land was made on 4 December 2008. The parties were, during that time, involved in a joint venture to redevelop the land.
I am satisfied that the value of the land as at the date of the agreement to purchase was not $4.4m as then claimed by the applicant.
The respondent re-assessed the value of the land at $9,225m.
Having heard the expert witnesses I am satisfied that the value of the land as at 4 December 2008 was $6.075m.
I find that the transfer of the land was between related entities due to the joint venture. As a result, I am satisfied that the parties should have obtained a valuation of the land as at the time of the transfer.
I am therefore further satisfied that the applicant is liable to pay the interest on the unpaid duty. I find that the applicant, in not obtaining a valuation as at the time of the transfer, failed to take reasonable care (s31(2), Taxation Administration Act 1999) and should pay a penalty of 50% of the amount of unpaid tax.
I do not find that the applicant intentionally disregarded the tax law (s31(4), Taxation Administration Act).
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Ms L. Crebbin, General President for and
on behalf of Mr B. Hatch, Senior Member
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