Sorensen v Commissioner of State Revenue

In the case of Sorensen v Commissioner of State Revenue, the taxpayer challenged a decision by the Commissioner of State Revenue concerning stamp duty payable on the transfer of shares in a company that owned a property. The property was held under a community title scheme, and the dispute centred around whether the transaction was exempt from stamp duty under Queensland legislation. The case was heard in the Queensland Land Court, with the court tasked with determining the applicability of the exemption and whether the transactions involved should be aggregated for the purposes of calculating the stamp duty.

The primary legal issue before the court was whether the transfer of shares, which resulted in the transfer of the right of occupancy of the property to an individual, constituted a transfer of real property for which stamp duty was payable. Specifically, the court needed to determine if the transaction fell within the exemption for community title schemes. Additionally, the court had to decide if the five simultaneous transfers, involving one transferor and three transferees, should be aggregated for the purpose of calculating the stamp duty.

The court found that the transfer of shares did not constitute a transfer of real property for which stamp duty was payable, as it did not fall within the exemption for community title schemes. The court also determined that the five simultaneous transfers should not be aggregated for the purpose of calculating the stamp duty, as each transaction was independent. Consequently, the court confirmed the decision of the Commissioner of State Revenue on objection, dated 2 August 2018, upholding the stamp duty assessment.