Moreton Resources Limited v Innovation and Science Australia [2019] FCAFC 120

FEDERAL COURT OF AUSTRALIA

Moreton Resources Limited v Innovation and Science Australia [2019] FCAFC 120 File number: VID 1291 of 2018

Judges: DAVIES, MOSHINSKY AND STEWARD JJ

Date of judgment: 25 July 2019

Catchwords: TAXATION – research and development tax offset – underground coal gasification (UCG) facility – pilot project – where appellant undertook a pilot project to test the viability of using UCG technology at a particular site to produce UCG synthesis gas that would then be cleaned and stabilised for production of electricity using gas turbines – where pilot project failed – where registered activities for subsequent years included remediation of the site – whether the registered activities for the subsequent years were "supporting R&D activities" within the meaning of Div 355 of the Income Tax Assessment Act 1997 (Cth) – whether the registered activities constituting the pilot project fell within the definition of "core R&D activities" – whether the Administrative Appeals Tribunal erred in its construction of "core R&D activities"

Legislation: Administrative Appeals Tribunal Act 1975 (Cth), s 44 Corporations Act 2001 (Cth), s 249D Income Tax Assessment Act 1936 (Cth), s 73B Income Tax Assessment Act 1997 (Cth), ss 355-1, 355-5, 355-20, 355-25, 355-30, 355-35 Industry Research and Development Act 1986 (Cth), ss 4, 27A, 27B, 27F, 27J, 27K, 27L, 30D, 30E, 39J Tax Laws Amendment (Research and Development) Act 2011 (Cth) Environmental Protection Act 1994 (Qld), ss 22, 193, 322, 324 Mineral Resources Act 1989 (Qld), ss 186, 208 Petroleum and Gas (Production and Safety) Act 2004 (Qld) Petroleum and Gas (Production and Safety) Regulation 2004 (Qld)