Nanos v Commissioner of State Revenue (Review and Regulation) [2015] VCAT 328
The Commissioner assessed the transfer of a house together with the transfer of an adjoining block of land to the taxpayers on an aggregated basis. Both transfers were made on the same day pursuant to separate contracts of sale between the same vendor and the taxpayers as purchasers.
The contracts were entered into on the same day, and were conditional on each other. Section 24 of the Act provides that where separate transfers form “substantially one arrangement” they are to be assessed for duty on an aggregated basis. The result of aggregation is that a higher rate of duty can apply to the dutiable value of the entire property.
The Tribunal confirmed the relevant factors the Commissioner takes into account when determining whether there is “substantially one arrangement”.
Where two contracts are interdependent, this factor will be a strong indication that the transfers should be aggregated.
