Australia, June 24 -- New South Wales Land and Environment Court issued text of the following judgement on May 23:

1. The applicants, Meng Guo and Pu Chen ("Applicants"), challenge an assessment of surcharge land tax made by the Chief Commissioner of State Revenue, the respondent in this matter ("Respondent").

2. The Respondent assessed the surcharge land tax on one of the Applicants, Pu Chen on the basis that she was a "foreign person" for the purposes of the Land Tax Act 1956 ("LTA"). He assessed land tax on the entire value of the relevant land.

3. The Applicants consider that the assessment of surcharge land tax is excessive. This is because, in the Applicants' submission, the land in question was owned beneficially as to 80% by Meng Guo, Ms Chen's husband. The Applicants say that Mr Guo is not a "foreign person" and therefore not liable to surcharge land tax in respect of his claimed ownership interest.

4. The Respondent says that Mr Guo is not a beneficial owner of the land. As a result, in the Respondent's submission, Ms Chen, as a "foreign person" is liable for the surcharge land tax as assessed.

5. The question for determination is whether Mr Guo is a beneficial owner of the land. If so, the further question is whether his ownership interest is the 80% interest he claims and if not, whether his interest is ascertainable on the evidence.

Background

6. The Applicants in this matter, Meng Guo and Pu Chen married in 2015.

7. By contract for sale and purchase of land dated 15 June 2017, Ms Chen agreed to purchase land in New South Wales. That land contained a residence. She was the sole purchaser named on the contract.

8. On 3 July 2017, Ms Chen received an offer from a lender to borrow money under a residential investment loan. That offer was signed by Ms Chen on 4 July 2017. She was the sole borrower on the record.

9. Settlement of the contract for sale and purchase of the land occurred on 1 August 2017.

10. On 8 August 2017, a mortgage over the property to the lender was registered on title. Ms Chen was the sole mortgagor.

*Rest of the document can be viewed at: (https://www.caselaw.nsw.gov.au/decision/196f68676c6807e10d35880c)

Disclaimer: Curated by HT Syndication.