SPI PowerNet Pty Ltd v Commissioner of Taxation [2014] FCAFC 36

FEDERAL COURT OF AUSTRALIA

SPI PowerNet Pty Ltd v Commissioner of Taxation [2014] FCAFC 36 Citation: SPI PowerNet Pty Ltd v Commissioner of Taxation [2014] FCAFC 36

Appeal from: SPI PowerNet Pty Ltd v Commissioner of Taxation [2013] FCA 924

Parties: SPI POWERNET PTY LTD ACN 079 798 173 v THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

File number: VID 1061 of 2013

Judges: EDMONDS, MCKERRACHER AND DAVIES JJ

Date of judgment: 7 April 2014

Catchwords: INCOME TAX – whether outgoings deductible under general provisions of s 8-1 of the Income Tax Assessment Act 1997 (Cth) – outgoings in the form of imposts imposed under s 163AA of the Electricity Industry Act 1993 (Vic) over three years – appellant agreed to pay the imposts on purchase of transmission licence – whether outgoings to be characterised as part of cost of acquiring assets and therefore on capital account or as a working expense on revenue account

Legislation: Income Tax Assessment Act 1936 (Cth) s 51(1) Income Tax Assessment Act 1997 (Cth) s 8-1 Electricity Industry Act 1993 (Vic) s 163AA

Cases cited: BP Australia Ltd v Federal Commissioner of Taxation (1965) 112 CLR 386 referred British Insulated and Helsby Cables Ltd v Atherton (1926) AC 205 referred to British Sugar Manufacturers Ltd v Harris (H.M. Inspector of Taxes) (1938) 21 TC 528 cited City Link Melbourne Ltd v Commissioner of Taxation (2004) 141 FCR 69 referred to Cliffs International Inc v Federal Commissioner of Taxation (1978–1979) 142 CLR 140 discussed Colonial Mutual Life Assurance Society Ltd v Federal Commissioner of Taxation (1953) 89 CLR 428 followed Commissioner of Taxation (WA) v Boulder Perseverance Ltd (1937) 58 CLR 223 cited Emu Bay Railway Co Ltd v Federal Commissioner of Taxation (1944) 71 CLR 596 cited Federal Commissioner of Taxation v Citylink Melbourne Limited (2006) 228 CLR 1 referred to Federal Commissioner of Taxation v Midland Railway Co of Western Australia Ltd (1951–1952) 85 CLR 306 cited GP International Pipecoaters Pty Ltd v Federal Commissioner of Taxation (1989–1990) 170 CLR 124 referred to Hallstroms Pty Ltd v Federal Commissioner of Taxation (1946) 72 CLR 634 considered Herald & Weekly Times Limited v Federal Commissioner of Taxation (1932) 48 CLR 113 cited John Fairfax & Sons Pty Ltd v Federal Commissioner of Taxation (1959) 101 CLR 30 discussed Moffatt v Webb (1913) 16 CLR 120 discussed Ounsworth (Surveyor of Taxes) v Vickers Ltd [1915] 3 KB 267 referred to Sun Newspapers Ltd v Federal Commissioner of Taxation; Associated Newspapers Ltd v Federal Commissioner of Taxation (1938) 61 CLR 337 considered and discussed United Energy Ltd v Commissioner of Taxation (1997) 78 FCR 169 discussed Vallambrosa Rubber Co Ltd v Farmer (1910) SC 519 discussed