Commissioner of Taxation v Guardian AIT Pty Ltd ATF Australian Investment Trust [2023] FCAFC 3

FEDERAL COURT OF AUSTRALIA

Commissioner of Taxation v Guardian AIT Pty Ltd ATF Australian Investment Trust [2023] FCAFC 3 Appeal from: Guardian AIT Pty Ltd ATF Australian Investment Trust v Commissioner of Taxation [2021] FCA 1619

File numbers: QUD 36 of 2022 QUD 37 of 2022

Judgment of: PERRY, DERRINGTON AND HESPE JJ

Date of judgment: 24 January 2023

Catchwords: TAXATION – appeal from judgment of a single judge to set aside taxation decision under Part IVC of the Taxation Administration Act 1953 (Cth) (TAA 1953) – application of s 100A of the Income Tax Assessment Act 1936 (Cth) (ITAA 1936) – whether primary judge erred in holding that present entitlement to trust income did not arise out of a reimbursement agreement or by reason of any act, transaction or circumstance in connection with or as a result of reimbursement agreement TAXATION – appeal from judgment of a single judge to set aside taxation decision under Part IVC of the TAA 1953 – application of Part IVA of the ITAA 1936

Legislation: Income Tax Assessment Act 1936 (Cth) ss 97, 98A, 99A, 100A, 128B, 128D, 177A, 177C, 177CB, 177D Income Tax Rates Act 1986 (Cth) s 12(1), Sch 7 Taxation Administration Act 1953 (Cth) s 14ZZ

Cases cited: Commissioner of Taxation v Hart (2004) 217 CLR 216; [2004] HCA 26 Commissioner of Taxation v Lenzo (2008) 167 FCR 255; [2008] FCAFC 50 Commissioner of Taxation v News Australia Holdings Pty Ltd [2010] FCAFC 78 Commissioner of Taxation v Prestige Motors Pty Ltd (1998) 82 FCR 195; [1998] FCA 221 Commissioner of Taxation v Spotless Services Ltd (1996) 186 CLR 404; [1996] HCA 34 Commissioner of Taxation of the Commonwealth of Australia v Consolidated Press Holdings Limited (2001) 207 CLR 235; [2001] HCA 32 CPH Property Pty Ltd v Commissioner of Taxation (1998) 88 FCR 21; [1998] FCA 1276 Devries v Australian National Railways Commission (1993) 177 CLR 472; [1993] HCA 78 East Finchley Pty Ltd v Federal Commissioner of Taxation (1989) 90 ALR 457 Federal Commissioner of Taxation v Ashwick (Qld) No 127 Pty Ltd (2011) 192 FCR 325; [2011] FCAFC 49 Federal Commissioner of Taxation v Lutovi Investments Pty Ltd (1978) 140 CLR 434 Federal Commissioner of Taxation v Macquarie Bank Ltd (2013) 210 FCR 164; [2013] FCAFC 13 Federal Commissioner of Taxation v Peabody (1994) 181 CLR 359; [1994] HCA 43 Federal Commissioner of Taxation v Star City Pty Ltd (2009) 175 FCR 39; [2009] FCAFC 19 Federal Commissioner of Taxation v Trail Bros Steel & Plastics Pty Ltd (2010) 186 FCR 410; [2010] FCAFC 94 Fox v Percy (2003) 214 CLR 118; [2003] HCA 22 Miller & Associates Insurance Broking Pty Ltd v BMW Australia Finance Ltd (2010) 241 CLR 357; [2010] HCA 31 Minister for Immigration and Border Protection v SZVFW (2018) 264 CLR 541; [2018] HCA 30 RCI Pty Ltd v Federal Commissioner of Taxation [2011] FCAFC 104 Re Day (2017) 340 ALR 368 at 386 [73]; [2017] HCA 2 Robinson Helicopter Company Inc v McDermott (2016) 331 ALR 550; [2016] HCA 22