Australia, July 14 -- New South Wales Land and Environment Court issued text of the following judgement on June 13:

1. This is an application for review of a decision of the Chief Commissioner of State Revenue (the "Respondent") to assess interest and penalty tax on unpaid amounts of surcharge purchaser duty. The Respondent's submission is that one of the applicants is liable for that interest and penalty tax. The applicants, however, disagree with the assessment of interest and penalty tax.

Background

2. The applicants in these proceedings are Ata Karazincir and his wife Simge Karazincir. It was agreed that Ata Karazincir had a liability to surcharge purchaser duty but Simge Karazincir did not. Ata Karazincir, as the party liable, will be referred to as the "Applicant" in these reasons.

3. The Applicant was a citizen of Turkey (now known as Turkiye) at all relevant times.

4. On 10 February 2021, he was granted a partner visa. That visa lapsed because he did not enter Australia within one year. On 27 August 2023, he was granted another partner visa. The Respondent treated that visa as a permanent visa.

5. On 27 August 2022, both applicants entered into a contract for the purchase of a property. They purchased the property as joint tenants. On 19 October 2022, settlement occurred.

6. On 29 August 2022, a Purchaser/Transferee declaration was completed. This is a declaration which is completed by each person entering into a transaction that results in the acquisition of land in NSW.

7. In questions 1.9 and 1.10 in the Purchaser/Transferee declaration, the Applicant declared that Australia was his country of tax residence and Turkey was his country of citizenship.

8. Question 2.1 asked: "Is the purchaser/transferee a foreign person?". The Applicant answered "no". He also ticked the box to indicate that he was an Australian citizen. It was agreed that both answers were incorrect.

9. During the 12 month period prior to exchange of the contract, the Applicant was in Australia for 45 days. In the 12 month period following the purchase, he was in Australia for 64 days.

10. On 18 March 2023, a contract for the purchase of a second property was exchanged. Both applicants were the purchasers as tenants in common in equal shares.

*Rest of the document can be viewed at: (https://www.caselaw.nsw.gov.au/decision/19761cd3274ccb7b678d4815)

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