Tooth & Co Ltd v Newcastle Developments Ltd [1966] HCA 57

Tooth & Co Ltd v Newcastle Developments Ltd [1966] HCA 57

The lease covenant made the lessee liable for land tax charged or imposed in respect of the demised premises. That liability was not defeated by the fact that an assessment had not issued, and it was not reduced ratably because the lease ended after the land-tax taxing date. Since the lessor owned other land and land tax was assessed as a composite amount on all its land, the recoverable amount was the proportion of the lessor's total land tax liability corresponding to the ratio of the unimproved value of the demised land to the total value of all the lessor's land. The judge at first instance applied that basis, so the appeal failed.

Jurisdiction
Australia
Procedural Posture
Appeal / High Court Appeal
Outcome
Appeal dismissed with costs.
Legal Topics
['lease Covenant to Pay Rates and Taxes' 'land Tax Liability' 'apportionment of Land Tax' 'construction of Lease Covenant' 'assessment of Land Tax']
['property Law' 'taxation' 'contract Law'] ['lease Covenant to Pay Rates and Taxes' 'land Tax Liability' 'apportionment of Land Tax' 'construction of Lease Covenant' 'assessment of Land Tax']

Case Brief

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Procedural Posture

Appeal / High Court Appeal

Legal Issues

  1. 1 ['Whether the appellant lessee was liable under the lease covenant to pay land tax in respect of the demised premises.' "Whether the absence of a notice of assessment for the second tax year at the commencement of the action defeated the respondent's claim." "Whether the appellant's liability for the 1961-1962 land tax year was only a ratable proportion because the lease ended on 31st December 1961." "How to ascertain the part of the respondent lessor's land tax liability imposed or charged in respect of the demised premises where the lessor owned other land."]

Ratio Decidendi

The lease covenant made the lessee liable for land tax charged or imposed in respect of the demised premises. That liability was not defeated by the fact that an assessment had not issued, and it was not reduced ratably because the lease ended after the land-tax taxing date. Since the lessor owned other land and land tax was assessed as a composite amount on all its land, the recoverable amount was the proportion of the lessor's total land tax liability corresponding to the ratio of the unimproved value of the demised land to the total value of all the lessor's land. The judge at first instance applied that basis, so the appeal failed.

Court Disposition

Appeal dismissed with costs.

Orders

  • ['Appeal dismissed with costs.']