Below is a listing of appeals heard by the Supreme Court of South Australia in relation to Taxation Administration matters since September 2023.

  • Date of Decision

    27 September 2023

    Orders

    The Supreme Court held that the Respondent’s application for a permanent stay of proceedings be dismissed.

    Decision

    The Applicant, the Commissioner of State Taxation, brought a monetary claim against the Respondent, Marmota Ltd, for unpaid payroll and penalty tax plus interest for the period, 1 July 2010 to 20 June 2015 inclusive.

    The Applicant alleged that this tax arose from a partnership between Marmota Ltd and Monax Mining Ltd. The Respondent denied such a partnership existed at law and as such disputed the tax assessments.

    On 19 September 2022, the Applicant filed an interlocutory application seeking summary judgment.

    On 26 September 2022, the Respondent filed an interlocutory application for a permanent stay of proceedings.

    The Honourable Justice McIntyre of the Supreme Court of South Australia held:

    1. The Respondent’s application for a permanent stay of proceedings is dismissed.
    2. The Respondent’s defence constitutes a challenge to the validity or correctness of an assessment in respect of which rights of objection and appeal are conferred under Part 10 of the Taxation Administration Act 1996 (“TAA”).

      Section 100 of the TAA prevents those challenges being mounted in the context of debt recovery proceedings.

    3. The proper course for ventilating such a challenge is limited to the avenue provided by Part 10 or alternatively the bringing of judicial review proceedings.
    4. Section 100 of the TAA is not an unlawful privative clause as contended by the respondent.

    Catchwords

    Taxes and duties – payroll tax – assessment, collection and recovery of payroll tax

    Taxes and duties – payroll tax – objections, appeals and reviews

    Procedure – State And Territory courts: jurisdiction, powers and generally – inherent and general statutory powers – to stay or dismiss orders or proceedings generally

    Procedure – civil proceedings in state and territory courts – ending proceedings early – summary disposal – summary judgment for plaintiff or applicant – generally

    Case Summary

    Commissioner of State Taxation v Marmota Ltd [2023] SASC 134

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