Commissioner Of Taxation v Metal Manufactures Limited

FEDERAL COURT OF AUSTRALIA

Commissioner of Taxation v Metal Manufactures Ltd [2001] FCA 365 TAXATION – income tax – sale and lease-back of industrial plant – whether items of plant were fixtures – deductibility of outgoings of rent – whether any part of outgoings on capital account – whether taxpayer sought a "collateral advantage" – whether Pt IVA applied to the arrangement. Income Tax Assessment Act 1936 Pt IVA, ss 51, 51(1), 177D, 177D(b), 177F, 177F(1)(b) The Commissioner of Taxation of the Commonwealth of Australia v South Australian Battery Makers Pty Ltd (1978) 140 CLR 645 applied Magna Alloys and Research Pty Ltd v Federal Commissioner of Taxation (1980) 49 FLR 183 referred to Federal Commissioner of Taxation v Broken Hill Proprietary Company Limited (2000) ATC 4659 considered BP Australia Ltd v Commissioner of Taxation of the Commonwealth of Australia (1965) 112 CLR 386 applied EON Metals NL v Commissioner of State Taxation (WA) (1991) 91 ATC 4841 referred to National Dairies WA Ltd v Commissioner of State Revenue (WA) (1999) 99 ATC 5155 applied Re Starline Furniture Pty Ltd (1982) 6 ACLR 312 applied Holland v Hodgson (1872) LR 7 CP 328 applied Palumberi v Palumberi (1986) Aust NZ Conv R 593 applied Reynolds v Ashby & Son [1904] AC 466 applied Attorney-General (Cth) v R T Co Pty Ltd [No 2] (1957) 97 CLR 146 considered In re Samuel Allen & Sons Ltd [1907] 1 Ch 575 referred to Kay's Leasing Corporation Pty Ltd v CSR Provident Fund Nominees Pty Ltd [1962] VR 429 referred to Melluish v BMI [No 3] Ltd [1996] AC 454referred to COMMISSIONER OF TAXATION v METAL MANUFACTURES LIMITED N30 OF 2000 LEE, CARR and SUNDBERG JJ PERTH (HEARD IN SYDNEY) 3 APRIL 2001

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY N30 OF 2000

ON APPEAL FROM A JUDGE OF THE FEDERAL COURT OF AUSTRALIA