Bellinz Pty Ltd v The Commissioner of Taxation of the Commonwealth of Australia [1998] FCA 284

FEDERAL COURT OF AUSTRALIA

TAXATION - income tax - allowable deductions - depreciation of plant - under s 54(1) Income Tax Assessment Act - plant the subject of lease with option to purchase and subsequent sub-lease to original vendor - identification of owner of plant for purposes of s 54(1) - meaning of owner for purposes of s 54(1). TAXATION - public and private rulings system - binding public rulings made in relation to an arrangement or class of arrangements - extent to which Commissioner bound by public rulings - whether Commissioner bound by principles stated in a public ruling. TAXATION - whether abuse of power - Commissioner's duty of fairness to individual taxpayers - whether judicial review available to prevent abuse of power - whether principle in Re Preston applies to substantive as well as procedural matters - extent to which principle applies when a private ruling is sought. WORDS AND PHRASES - "owner"

Income Tax Assessment Act 1936 (Cth) s 54(1) Taxation Administration Act 1953 (Cth) Parts IVAAA, IVAA and IVDC; s 14ZAF, s AAA, s 170BB, s 170BH Federal Commissioner of Taxation v McMahon (1997) 149 ALR 159 cited Commissioner of Taxation v Citibank Ltd (1993) 44 FCR 434 considered Stefanetto v Forestry Commission [1975] 2 NSWLR 332 affirmed (1976) 133 CLR 507 considered Malaysia Shipyard v "Iron Shortland" (1995) 131 ALR 738 considered Melluish (Inspector of Taxes) v B.M.I. (No. 3) Ltd [1996] 1 AC 454 applied K.L.D.E. Pty Ltd v Commissioner of Stamp Duties (Q) (1983) 155 CLR 288 considered R v Inland Revenue Commissioners; ex parte Preston [1985] AC 835 considered R v Inland Revenue Commissioners; ex parte Unilever plc [1996] BTC 183 considered David Jones Finance and Investment Pty Ltd v Federal Commissioner of Taxation (1990) 90 ATC 4730; on appeal 91 ATC 4315 considered Pickering v Federal Commissioner of Taxation (1997)97 ATC 4893 considered "Beneficial Ownership" (1997) 26 Australian Tax Review 34 BELLINZ PTY LIMITED v THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA No VG 76 of 1998 JUDGE: MERKEL J DATE: 31 MARCH 1998 PLACE: MELBOURNE