More from that OZschwitz slave pen: Billionaire loses battle against land tax bill

THE billionaire developer Bob Ell may have grown up in the Hunter Valley town of Merriwa but he cannot avoid tax by claiming to be a cattle farmer, a court has found.

The ruling means Mr Ell's company will be sent a multimillion-dollar bill for land tax dating back to the 2006 calendar year.

Mr Ell's company has spent the past four years disputing payment of the bill, which relates to a large swathe of land that straddles the Queensland-NSW border on which Mr Ell plans to build a new satellite city.

The ruling by NSW Supreme Court judge Ian Gzell could also mean he is forced to pay land tax for the following three years, and could mean he has to pay land tax on another nearby landholding where he has also grazed cattle before development.

Payment should not be a problem as Mr Ell, Australia's 27th richest man, is worth $1.1 billion.

The land tax bill was levied against a parcel of 593 hectares west of Tweed Heads, where Mr Ell plans to build as many as 4741 houses, a resort hotel, town centre and golf course. The plans are before the Planning Department. It will be his largest development yet in his 40 years as a developer.

The 65-year-old had tried to avoid the tax by relying on an exemption for landowners who use their land for ''primary production''. But Justice Gzell rejected this claim, and said the land at Cobaki Lakes was used for a ''residential purpose'' and not for cattle farming.

He noted the company that owned the land had described its business as a ''developer'' in its tax returns.

Justice Gzell also pointed to the fact that Leda had spent $13.7 million on earthworks, an internal road and other improvements, whereas the value of the 279 cattle was a mere $92,750.

Mr Ell has owned the land for 16 years. He bought it for $16 million after another buyer failed to come up with the cash.

If planning approval is granted it will be worth more than $100 million.

ANCAPS: ANARCHO-CAPITALISTS

More from that OZschwitz slave pen: Billionaire loses battle against land tax bill

More from that OZschwitz slave pen: Billionaire loses battle against land tax bill

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