Commissioner of Taxation v Unilever Australia Securities Ltd [1995] FCA 63

CATCHWORDS TAXATION - assessable income - "debt defeasance" as a financial arrangement and taxation consequences thereof - whether a profit or gain was derived as a result of the "debt defeasance" arrangement - whether profit or gain derived was assessable income - whether profit or gain was on revenue or capital account - time of derivation. TAXATION - capital gains tax (Part IIIA) - whether profit or gain is included under assessable income as a capital gain. Local Government Finance Act 1983 (SA) Income Tax Assessment Act 1936 (Cth) Companies (NSW) Regulations COMMISSIONER OF TAXATION v UNILEVER AUSTRALIA SECURITIES LIMITED NG 438 of 1994

LOCKHART, BEAUMONT and HILL JJ. SYDNEY 24 FEBRUARY 1995

IN THE FEDERAL COURT OF AUSTRALIA) ) NEW SOUTH WALES DISTRICT REGISTRY) No. NG438 of 1994 ) GENERAL DIVISION ) ON APPEAL FROM A JUDGE OF THE FEDERAL COURT OF AUSTRALIA BETWEEN: COMMISSIONER OF TAXATION Appellant AND: UNILEVER AUSTRALIA SECURITIES LIMITED Respondent

COURT: LOCKHART, BEAUMONT & HILL JJ. PLACE: SYDNEY DATE: 24 FEBRUARY 1995 MINUTE OF ORDER THE COURT ORDERS THAT: 1. The appeal be allowed. 2. The matter be remitted to Spender J. or other judge of the Court to determine the quantum of the profit arising in the year ended 30 June 1987; but the operation of this order be suspended for 28 days to allow the parties to agree, if possible, the amount of the profit arising. 3. The objection decision of the Commissioner, in respect of the assessment for income tax for the year ended 30 June 1987, be set aside, and in lieu thereof, the objection be allowed in part. 4. Subject to the determination by Spender J. or other judge of the Court, or as agreed, of the quantum of profit, the assessment be remitted to the Commissioner for reassessment in accordance with law. - 2 - 5. The respondent pay the appellant's costs of the appeal and of the proceeding at first instance. NOTE: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.