Jordaan v Chief Commisioner of State Revenue

[2002] NSWADT 107

CITATION:	Jordaan -v- Chief Commisioner of State Revenue [2002] NSWADT 107
DIVISION:	Revenue Division
PARTIES:	APPLICANT Peter Jordaan RESPONDENT Chief Commissioner of State Revenue
FILE NUMBER:	016014
HEARING DATES:	25/02/2002
SUBMISSIONS CLOSED:	02/25/2002
DATE OF DECISION:	06/25/2002
BEFORE:	Hole M - Judicial Member
APPLICATION:	Taxation Administration Act - liability to pay interest
MATTER FOR DECISION:	Principal matter
LEGISLATION CITED:	Taxation Administration Act 1996
CASES CITED:
REPRESENTATION:	APPLICANT In person RESPONDENT D Martin, agent
ORDERS:	That the assessment of an interest rate of 4.89% interest on the late lodgment for the 2000 and 2001 land tax assessment has been correctly assessed and is payable by the Applicant.

1 The Applicant has applied for a review of the decision of the Commissioner in relation to a land tax assessment by the Commissioner for 2000 and 2001 in relation to property owned by the Applicant.

2 The Applicant was formerly a resident of Victoria having relocated to New South Wales in October 1997. The Applicant proceeded to purchase an investment flat in 1998 and then a house in 1999.

3 The Applicant has submitted that he was unaware of any liability that he might have for the assessment of land tax and submitted that no professional person that he had engaged to attend to his taxation liabilities including a taxation consultant who was based in Victoria had advised him of his liability to the possibility of a land tax assessment.

4 The Applicant immediately sought advice following a casual comment made to him by a New South Wales resident that he may be liable to New South Wales land tax.

5 Following assessment by the Commissioner and a subsequent objection to the imposition of interest by the Applicant, the Commissioner remitted the premium interest rate imposed on the late lodgment of the tax return.

6 There is no question that the Applicant would have attended to having an assessment made in respect of his potential liability to pay land tax if he had been aware of his liability to do so.

7 The Commissioner has acted quickly to remit the premium interest rate of 8% and any penalties, The Commissioner confirmed the rate of 4.89%, being a rate estimated for loss of the opportunity to have receipt of the payment.

8 In view of the remissions made by the Commissioner I make the following order:

That the assessment of an interest rate of 4.89% interest on the late lodgment for the 2000 and 2001 land tax assessment has been correctly assessed and is payable by the Applicant.