ConnectEast Management Ltd v Commissioner of Taxation [2009] FCAFC 22

FEDERAL COURT OF AUSTRALIA

ConnectEast Management Ltd v Commissioner of Taxation [2009] FCAFC 22

INCOME TAX – tax loss deductions – widely held unit trusts – classification of and attribution of levels to widely held unit trusts for purposes of carry forward loss provisions – where units in widely held unit trust held by two other widely held unit trusts – whether trust deemed to be of the same higher level as its two owners pursuant to s 272‑127 of Sch 2F of the Income Tax Assessment Act 1936 (Cth). Income Tax Assessment Act 1936 (Cth) ss 272‑127, 272‑120, 272‑125 of Sch 2F

Commissioner of Taxation v Cooling (1990) 22 FCR 42 cited Esso Australia Resources Ltd v Federal Commissioner of Taxation (1998) 83 FCR 511 cited Ganter v Whalland [2001] NSWSC 1101 cited Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355 cited CONNECTEAST MANAGEMENT LIMITED (AS TRUSTEE FOR THE CONNECTEAST INVESTMENT TRUST 2) (ABN 680 71292 647) (ACN 071 292 647) v THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

VID 347 of 2008

SUNDBERG, JESSUP AND MIDDLETON JJ

5 MARCH 2009

MELBOURNE IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY VID 347 of 2008

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

BETWEEN: CONNECTEAST MANAGEMENT LIMITED (AS TRUSTEE FOR THE CONNECTEAST INVESTMENT TRUST 2) (ABN 680 71292 647) (ACN 071 292 647)

Appellant

AND: THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Respondent

JUDGES: SUNDBERG, JESSUP AND MIDDLETON JJ

DATE OF ORDER: 5 MARCH 2009

WHERE MADE: MELBOURNE

THE COURT ORDERS THAT:

1. The appeal be dismissed. 2. The appellant pay the respondent's costs of and incidental to the appeal. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules. The text of entered orders can be located using eSearch on the Court's website. IN THE FEDERAL COURT OF AUSTRALIA