Commissioner of Taxation v. Energy Resources of Australia Ltd [1994] FCA 924

JUDGMENT No. soncd2ostel wad

CATCHWORDS

INCOME TAX - foreign exchange gains and losses - "Euronote" financing facility under which 90 day promissory notes issued in $US, discounted and satisfied out of the proceeds of new issue - deduction allowed to respondent for discount at SA value at the time of maturity of difference between SUS issue amount and $US maturity amount - whether difference between $A value of issue proceeds at time of issue and SA value of obligation at time of maturity constituted assessable income as income in ordinary concepts - whether transactions involved the giving or paying of consideration other than cash for the

purposes of s.21 of the Income Tax Assessment Act 1936 (Cth) - whether any gain to the respondent required to be recognised

as derived by taxpayer on revenue or capital account - whether respondent made a realised currency exchange gain under an eligible contract within s.82Y

Coles Myer Finance Limited v Commissioner of Taxation (1993) 176 CLR 640; discussed.

Payne v Federal Commissioner of Taxation (1933-34) 51 CLR 197, {1936] AC 497; discussed.

Caltex Limited v Federal Commissioner of Taxation (1959-60) 106 CLR 205; discussed.

Pattison (Inspector of Taxes) v Marine Midland Ltd [1984] AC

362; discussed.

Capcount Trading v Evans (Inspector of Taxes) [1993] STC 11;

discussed. cceptance ited v Commissioner of Taxation (1977) 137 CLR 373; mtance i

Elmslie v Federal] Commissioner of Taxation (1993) 118 ALR 357; distinguished.

KD Morris & Sons Proprietary Limited (In Liquidation) v Bank of Oueensland Limited (1979-80) 146 CLR 165; applied.

Jolley v Mainka (1933) 49 CLR 242; applied. Equipments Ltd [1983] 1 AC 168; discussed.

"roll-over"

"under a contract" "cash"

"currency" tae

a . income Tax Asseément Act 1936 (Cth): ss.20(1), 21, Pt.III Div.3B, ss.82¥, 822, 82V(1) & (2)(a), 82W(1) & (2)