St.George Bank Limited v Commissioner of Taxation [2009] FCAFC 62

FEDERAL COURT OF AUSTRALIA

St.George Bank Limited v Commissioner of Taxation [2009] FCAFC 62

INCOME TAX – whether interest payments allowable deductions – payments made under debenture in connection with capital raising by bank to improve capital adequacy ratios – whether payments outgoings of a capital nature INCOME TAX – whether valid election to invoke Div 974 of the Income Tax Assessment Act 1997 (Cth) CORPORATIONS – nature of assets acquired by company upon issue of shares Held: interest payments outgoings of a capital nature – appeals dismissed "capital", "of a capital nature" Acts Interpretation Act 1901 (Cth) ss 15AA, 15AB Banking Act 1959 (Cth) s 9(6) Corporations Act 2001 (Cth) ss 124, 254B, Pt 2H.5, Ch 2J Income Tax Assessment Act 1997 (Cth) ss 8-1(1), 8-1(2), 974-115 New Business Tax System (Debt and Equity) Act 2001 (Cth) sch 1, cl 118 Taxation Administration Act 1953 (Cth) s 14ZZ(a)(ii) Amalgamated Society of Engineers v Adelaide Steamship Company Ltd (1920) 28 CLR 129 considered CIC Insurance Ltd v Bankstown Football Club Ltd (1997) 187 CLR 384 referred to Commissioner of Taxation v South Australian Battery Makers Pty Ltd (1978) 140 CLR 645 referred to Commissioner of Taxation v Star City Pty Ltd [2009] FCAFC 19 referred to Commissioner of Taxation (WA) v Boulder Perseverance Ltd (1937) 58 CLR 223 cited John Fairfax & Sons Pty Ltd v Federal Commissioner of Taxation (1959) 101 CLR 30 cited Liversidge v Anderson [1942] AC 207 considered Macquarie Finance Ltd v Commissioner of Taxation (2004) 210 ALR 508 considered Macquarie Finance Ltd v Commissioner of Taxation (2005) 146 FCR 77 considered Northern Territory of Australia v Collins (2008) 235 CLR 619 referred to Pondicherry Railway Co v Commissioner of Income Tax, Madras (1931) LR 58 Ind App 239 cited Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355 applied Re Advance Bank Australia Ltd (1997) 22 ACSR 513 cited Re Bolton; Ex parte Beane (1987) 162 CLR 514 cited Re The Swan Brewery Co Ltd (1976) 3 ACLR 164 cited Richardson v Austin (1911) 12 CLR 463 referred to St George Bank Limited v Commissioner of Taxation [2008] FCA 453 affirmed Steele v Deputy Commissioner of Taxation (1999) 197 CLR 459 considered Sun Newspapers Ltd v Federal Commissioner of Taxation (1938) 61 CLR 337 applied Ure v Federal Commissioner of Taxation (1981) 34 ALR 237 referred to ST.GEORGE BANK LIMITED v COMMISSIONER OF TAXATION