Jupiters Limited v Deputy Commissioner of Taxation [2002] FCAFC 206

FEDERAL COURT OF AUSTRALIA

Jupiters Limited v Deputy Commissioner of Taxation [2002] FCAFC 206

INCOME TAX – allowable deductions – agreement under State legislation for lease for 75 years of land and construction and operation of casino complex thereon – "Exclusivity Arrangements" whereby State covenanted not to permit defined forms of gaming in another casino within 60 kilometres of site for a period of 10 years – "Special Rental" of $7,000,000 per annum payable for next 10 years of lease – whether Special Rental payable for Exclusivity Arrangements – whether Exclusivity Arrangements a capital asset Income Tax Assessment Act 1936 (Cth) s 51 Income Tax Assessment Act 1997 (Cth) s 8-1 Sun Newspapers Ltd v Federal Commissioner of Taxation (1938) 61 CLR 337 at 364 referred to Colonial Mutual Life Assurance Society Ltd v Federal Commissioner of Taxation (1953) 89 CLR 428 at 454 cited Federal Commissioner of Taxation v South Australian Battery Makers Pty Ltd (1978) 140 CLR 645 at 659 and 655 cited Federal Commissioner of Taxation v The Broken Hill Proprietary Co Ltd (2000) 179 ALR 593 at [31] cited GP International Pipecoaters Pty Ltd v Federal Commissioner of Taxation (1990) 170 CLR 124 at 137 cited Hallstroms Pty Ltd v Federal Commissioner of Taxation (1946) 72 CLR 634 at 648 cited Broken Hill Theatres Pty Ltd v Federal Commissioner of Taxation (1952) 85 CLR 423 discussed JUPITERS LIMITED (ACN 010 741 045) v DEPUTY COMMISSIONER OF TAXATION NO Q4 OF 2002 HEEREY, MANSFIELD AND HELY JJ 25 JUNE 2002 MELBOURNE (HEARD IN BRISBANE)

IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY Q4 OF 2002

ON APPEAL FROM A SINGLE JUDGE OF THE FEDERAL COURT OF AUSTRALIA

BETWEEN: JUPITERS LIMITED (ACN 010 741 045)

APPELLANT

AND: DEPUTY COMMISSIONER OF TAXATION