Consolidated Media Holdings Ltd v Commissioner of Taxation [2012] FCAFC 36

FEDERAL COURT OF AUSTRALIA

Consolidated Media Holdings Ltd v Commissioner of Taxation [2012] FCAFC 36 Citation: Consolidated Media Holdings Ltd v Commissioner of Taxation [2012] FCAFC 36

Appeal from: Consolidated Media Holdings Ltd v Commissioner of Taxation [2011] FCA 367

Parties: CONSOLIDATED MEDIA HOLDINGS LTD (ACN 009 071 167) v COMMISSIONER OF TAXATION

File number: NSD 563 of 2011

Judges: STONE, GREENWOOD AND LOGAN JJ

Date of judgment: 20 March 2012

Catchwords: TAXATION – income tax – company share buy-back – off-market purchase – whether consideration constituted a dividend within the meaning of s 159GZZZP of the Income Tax Assessment Act 1936 (Cth) or a net capital gain treated as assessable income pursuant to Pt 3-1 of Income Tax Assessment Act 1997 (Cth) – meaning and application of 'share capital account' as defined by s 6D of the Income Tax Assessment Act 1936 (Cth) – held no part of purchase price was debited against amounts standing to the credit of share capital account – held deemed dividend within the meaning of s 159GZZZP

Legislation: Acts Interpretation Act 1901 (Cth) s 15AB Company Law Review Act 1998 (Cth) s 2, Sch 5 Corporations Act 2001 (Cth) Ch 2J Corporations Act 1989 (Cth) Corporations Law s 1446 Income Tax Assessment Act 1936 (Cth) ss 6, 6D, 44, 46, 46G, 46H, 46K, 159GZZZQ, 159GZZZP, 160ARDM, 160ARDQ Income Tax Assessment Act 1997 (Cth) Pt 3-1 Taxation Administration Act 1953 (Cth) s 14ZZQ Taxation Laws Amendment (Company Law Review) Act 1998 (Cth) s 1, 3, Sch 5 Taxation Laws Amendment (No 7) Act 1999 (Cth) s 2