Sunlite Australia Pty Ltd v Commissioner of Taxation [2023] FCAFC 43

Federal Court of Australia

Sunlite Australia Pty Ltd v Commissioner of Taxation [2023] FCAFC 43 Appeal from: XQDX and Commissioner of Taxation [2021] AATA 4070

File number: WAD 269 of 2021

Judgment of: COLVIN, O'SULLIVAN AND FEUTRILL JJ

Date of judgment: 21 March 2023

Catchwords: TAXATION - appeal against decision of the Australian Administrative Appeals Tribunal - where Commissioner conducted an audit and issued amended assessments - where Commissioner disallowed objection - where Tribunal upheld Commissioner's decision save as to the shortfall penalty - where appeal brought under s 44 of the Administrative Appeals Tribunal Act 1975 (Cth) - where applicant contends that the Tribunal erred in its construction of s 355-205 Income Tax Assessment Act 1997 (Cth) - where applicant contends that as a result of error in construction the Tribunal failed to determine the main issue - where respondent disputes both grounds - where respondent maintains that proceedings are incompetent as applicant seeks to raise new matters - where applicant claims entitlement to notional deduction pursuant to Income Tax Assessment Act Division 355 - where tax offset may be available for R&D entities which incur R&D expenditure - consideration of meaning of entity under Income Tax Assessment Act - consideration of circumstances in which Court on appeal from Tribunal may make factual findings - appeal dismissed

Legislation: Administrative Appeals Tribunal Act 1975 (Cth) s 44 Income Tax Assessment Act 1997 (Cth) ss 355-35, 355-205, 355-210, 950-100, 960-100, Division 355 Industry Research and Development Act 1986 (Cth) s 27A

Cases cited: Alcan (NT) Alumina Pty Ltd v Commissioner of Territory Revenue [2009] HCA 41; (2009) 239 CLR 27 Australian Competition and Consumer Commission v Yazaki Corporation [2018] FCAFC 73; (2018) 262 FCR 243 Brooks v Commissioner of Taxation [2000] FCA 721; (2000) 100 FCR 117 Burton v Commissioner of Taxation [2019] FCAFC 141; (2019) 271 FCR 548 Channel Pastoral Holdings Pty Ltd v Commissioner of Taxation [2015] FCAFC 57; (2015) 232 FCR 162 Commissioner of State Revenue v ACN 005 057 349 Pty Ltd [2017] HCA 6; (2017) 261 CLR 509 Commissioner of Taxation v Auctus Resources Pty Ltd [2021] FCAFC 39; (2021) 284 FCR 294 Kelly v The Queen [2004] HCA 12; (2004) 218 CLR 216 Minister for Immigration and Border Protection v WZAPN [2015] HCA 22; (2015) 254 CLR 610 Moreton Bay Regional Council v Mekpine Pty Ltd [2016] HCA 7; (2016) 256 CLR 437 Osland v Secretary to the Department of Justice [2010] HCA 24; (2010) 241 CLR 320 Owners of the Ship, 'Shin Kobe Maru' v Empire Shipping Co Inc (1994) 181 CLR 404 Roy Morgan Research Centre Pty Ltd v Commissioner of State Revenue (Vic) [2001] HCA 49; (2001) 207 CLR 72 SZTAL v Minister for Immigration and Border Protection [2017] HCA 34; (2017) 262 CLR 362