Bellinz Pty Ltd & Ors v The Commissioner of Taxation [1998] FCA 615

FEDERAL COURT OF AUSTRALIA INCOME TAX ‑ Allowable deductions ‑ Depreciation ‑ Plant "owned by taxpayer" ‑ Sale of plant by State government ‑ Purchaser sells to financier ‑ Financier grants lease to associates with option to purchase ‑ Sublease to initial purchaser ‑ Whether lessees "owner" of plant.

INCOME TAX ‑ Binding public rulings ‑ Ruling on way in which in Commissioner's opinion tax law would apply to person in relation to arrangement ‑ Whether Commissioner bound by principle underlying ruling as opposed to arrangement the subject of ruling.

INCOME TAX ‑ Administration of legislation ‑ Commissioner's duty of fairness to individual taxpayers ‑ Taxation rulings ‑ Reliance by taxpayer ‑ Whether refusal by Commissioner to treat taxpayer in accordance with ruling an abuse of power.

Income Tax Assessment Act 1936 s 54 Taxation Administration Act 1953 Pt IVAAA

Forestry Commission of New South Wales v Stefanetto (1976) 133 CLR 507 considered Union Trustee Company of Australia Limited v Federal Commissioner of Taxation (1915) 20 CLR 526 mentioned K L D E Pty Ltd v Commissioner of Stamp Duties (Qld)(1984) 155 CLR 288 mentioned Melluish (Inspector of Taxes) v BMI (No 3) Ltd [1996] 1 AC 454 considered Federal Commissioner of Taxation v Wade (1951) 84 CLR 105 mentioned R v Inland Revenue Commissioners; Ex parte Preston [1985] AC 835 considered Sigma Agencies Ltd v Collector of Customs (Northern Region) [1997] 1 NZLR 467 mentioned R v Inland Revenue Commissioners; Ex parte National Federation of Self‑Employed and Small Businesses Ltd [1982] AC 617 considered R v Inland Revenue Commissioners; Ex parte Unilever plc [1996] BTC 183 distinguished BELLINZ PTY LIMITED & ORS v THE COMMISSIONER OF TAXATION VG 131 of 1998 HILL, SUNDBERG AND GOLDBERG JJ MELBOURNE 10 JUNE 1998

IN THE FEDERAL COURT OF AUSTRALIA VICTORIA DISTRICT REGISTRY VG 131 of 1998