Trust Company of Australia Ltd v Commissioner of State Revenue

The High Court of Australia heard an appeal from the Queensland Court of Appeal concerning the assessment of stamp duty. The dispute arose from a contract for the sale of land, where the vendor sold the land to the responsible entity of a managed investment scheme, but the transfer of the land was made to the custodian of the scheme's property. Ad valorem duty was paid on the contract of sale, but the Commissioner of State Revenue also assessed ad valorem duty on the transfer to the custodian. The appellant, Trust Company of Australia Ltd, argued that the transfer was exempt from further ad valorem duty under section 54(6) of the *Stamp Act 1894* (Qld), which provided an exemption where duty had already been paid on the contract of sale.

The central legal issue before the High Court was whether the transfer of the land to the custodian was a transfer made to the purchaser within the meaning of section 54(6) of the *Stamp Act 1894* (Qld), thereby entitling the transaction to the exemption from ad valorem duty on the transfer. This required the Court to consider the nature of the custodian's role in relation to the purchaser under the contract and the operation of the exemption provision in the context of a managed investment scheme.

The High Court allowed the appeal, setting aside the orders of the Queensland Court of Appeal. The Court reasoned that the custodian, in receiving the transfer of the land, was acting as a nominee for the purchaser, the responsible entity of the managed investment scheme. The Court found that section 54(6) of the Act was intended to prevent double taxation where duty had already been paid on the contract of sale, and that the transfer to the custodian fell within the scope of this provision. The Court concluded that the exemption applied, and the assessment of ad valorem duty on the transfer was incorrect.