Commissioner of Taxation v Luxottica Retail Australia Pty Ltd [2011] FCAFC 20

FEDERAL COURT OF AUSTRALIA

Commissioner of Taxation v Luxottica Retail Australia Pty Ltd [2011] FCAFC 20 Citation: Commissioner of Taxation v Luxottica Retail Australia Pty Ltd [2011] FCAFC 20

Appeal from: Luxottica Retail Australia Pty Limited v Commissioner of Taxation [2010] AATA 22

Parties: COMMISSIONER OF TAXATION v LUXOTTICA RETAIL AUSTRALIA PTY LIMITED

File number: NSD 134 of 2010

Judges: RYAN, STONE AND JAGOT JJ

Date of judgment: 23 February 2011

Catchwords: TAXATION – appeal from decision of Taxation Appeals Division of Administrative Appeals Tribunal – assessment of GST – sale of spectacles (lenses and frame) – price of frame when included in sale of completed spectacles discounted from price when sold separately – supply of frame taxable – supply of lenses GST-free – whether sale of spectacles a single supply – s 9-80(2) A New Tax System (Goods and Services Tax) Act 1999 (Cth) 'impenetrably circular' – taxable proportion where bundled supply – value of actual supply not able to be determined under s 9-80(2) – in the circumstances determination of 'value' a question of fact not law – Tribunal determined value commensurate with price – no error of law – appeal dismissed

Words & phrases: "proportion"

Legislation: A New Tax System (Goods and Services Tax) Act 1999 (Cth) ss 9-70, 9-75, 9-80 Indirect Tax Legislation Amendment Act 2000 (Cth), Schedule 11, item 4A

Cases cited: IAC (Finance) Pty Limited v Courtenay (1963) 110 CLR 550 Kmart Australia Ltd v Commissioner of Taxation of the Commonwealth of Australia (2001) 114 FCR 353 Re Food Supplier and Commissioner of Taxation [2007] AATA 1550