Pascu & Ors v CSR (Review and Regulation) [2016] VCAT 668
The taxpayer subdivided and developed land in Port Melbourne as part of a joint venture. Six of the resulting lots were transferred to the joint venturers, the taxpayers. The Commissioner assessed these transfers as dutiable, however, the taxpayers claimed exemptions from duty pursuant to ss. 34 and 36 of the Act.
By order dated 29 April 2016, the Tribunal upheld the Commissioner’s assessments.
The Tribunal found that s34 of the Act did not apply as the taxpayers did not provide the purchase money for the property, but had provided loans to the joint venture company.
In addition, the Tribunal found the Joint Venture Agreement executed in 2007, upon which the taxpayers relied as establishing a fixed trust over the property, had been terminated. A new trust over the property, with different beneficiaries or membership, was created by a subsequent Joint Venture Agreement in respect of the property executed in 2009. No duty had been paid on the 2009 agreement, and it followed accordingly the exemption in s36 was unavailable.
