Eastern Nitrogen Ltd v Commissioner of Taxation [2001] FCA 366

FEDERAL COURT OF AUSTRALIA

Eastern Nitrogen Ltd v Commissioner of Taxation [2001] FCA 366

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 (Cth) Pt IVA, ss 51, 51(1), 67, 177A-177G, 177A(1), 177A(5), 177C(1)(b), 177D(b), 177D(b)(ii) Taxation Administration Act 1953 Cth) s 14ZZO(b)(i) Commissioner of Taxation of the Commonwealth of Australia v Spotless Services Ltd (1996) 186 CLR 404 applied Melluish (Inspector of Taxes) v MBI (No 3) Ltd [1996] AC 454 applied Kay's Leasing Corp Pty Ltd v CSR Provident Fund Nominees Pty Ltd [1962] VR 429 referred to Re Samuel Allen & Sons Ltd [1907] 1 Ch 575 referred to Re Morrison, Jones & Taylor Ltd [1914] 1 Ch 51 referred to Waltons Stores (Interstate) Ltd v Maher (1988) 164 CLR 387 referred to Commonwealth v Verwayen (1990) 170 CLR 394 referred to Industrial Properties (Barton Hill) Ltd v Associated Electrical Industries Ltd [1977] 1 QB 580 (C.A.) referred to Stern v McArthur (1988) 165 CLR 489 referred to Chow Yoong Hong v Choong Fah Rubber Manufactory [1962] AC 209 referred to Prime Wheat Association Ltd v Chief Commissioner of Stamp Duties (1996) 42 NSWLR505 referred to Australia and New Zealand Savings Bank Ltd v Commissioner of Taxation (1993) 42 FCR 535 referred to N.M. Superannuation Pty Ltd v Young (1993) 113 ALR 39 referred to Sun Newspapers Ltd & Associated Newspapers Ltd v Federal Commissioner of Taxation (1938) 61 CLR 337 applied G P International Pipecoaters Pty Ltd v Federal Commissioner of Taxation (1990) 170 CLR 124 applied Chandler Investment (No 5) Co Ltd v Commissioner of Taxation (1993) 47 FCR 588 applied Commissioner of Inland Revenue v Europa Oil NZ Ltd [1971] AC 760 considered Europa Oil NZ Ltd v Inland Revenue Commission [1976] 1 WLR 464 considered Federal Commissioner of Taxation v Email Ltd (1999) 99 ATC 4,868 considered CC (New South Wales) Pty Ltd (In Liq) v Federal Commissioner of Taxation (1997) ATC 4,123 considered Peabody v Commissioner of Taxation (1993) 40 FCR 531 considered