Bondi Beachside decision may entitle some taxpayers to a refund of duty

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By Nathan Deveson

If you have paid duty on the extension of a deferred note purchase financing arrangement, you may be entitled to a refund of the duty.

In the recent decision of Bondi Beachside Pty Ltd v Chief Commissioner of State Revenue [2014] NSWCA 6, the New South Wales Supreme Court of Appeal has allowed the taxpayer’s appeal against the earlier decision, which in part affirmed a mortgage duty assessment issued under the Duties Act 1997 (NSW).

This case concerned the extension of the termination date under a deferred note purchase financing arrangement and one of the key issues considered was whether the extension amounted to an ‘advance’ by way of a forbearance within the meaning of the relevant mortgage duty provisions such that additional mortgage duty was payable…

Click on the link below to read the rest of the Minter Ellison briefing.