BPG Caulfield v CSR  VSC 172
The Commissioner assessed the taxpayer for duty under the “economic entitlement” provisions in s81 of the Duties Act 2000 (the Act).
BPG had entered into a development agreement with the Melbourne Racing Club to develop one of its lands. As part of that agreement, BPG also acquired the rights to share in the proceeds of that development.
The Commissioner argued that BPG had effectively acquired an economic entitlement in the Melbourne Racing Club for purposes of s81.
BPG disputed its assessment. It argued that on a proper construction, the specific words in s81 – which referred to “the landholdings of the private landholder”, required one to acquire an economic entitlement pertaining to all the landholdings of the landholder rather just a landholding or some of the landholdings of the landholder.
On 22 April 2016, the Supreme Court accepted BPG’s preferred construction on the basis that it more closely aligned with the context of the provisions.