Industry Research & Development Board v Bridgestone Australia Ltd [2001] FCA 954

FEDERAL COURT OF AUSTRALIA

Industry Research & Development Board v Bridgestone Australia Ltd [2001] FCA 954 INCOME TAX – concessional deduction of 150% of expenditure on research and development activities – whether taxpayer's exploitation of the results of activities was otherwise than on "normal commercial terms" – whether contract relating to the exploitation was what one would expect if the contract had been entered into by persons "dealing with each other at arm's length and from positions of comparable bargaining power" within s 39C of Industry Research and Development Act 1986 (Cth) – meaning of statutory expression – whether question of law – whether "comparable" meant "able to be compared and contrasted by reason of being of the same genus or possessing similar aspects" on the one hand, or "similar", "alike" or "roughly equivalent" on the other hand STATUTORY INTERPRETATION – statutory language ambiguous – facts found - question which of two meanings was the correct one to be applied to facts – whether question of law or question of fact within s 44(1) of Administrative Appeals Tribunal Act 1975 (Cth) WORDS AND PHRASES – "comparable" – "dealing with each otherĽfrom positions of comparable bargaining power"

Income Tax Assessment Act 1936 (Cth) s 73B(33) Industry Research and Development Act 1986 (Cth) ss 39C, 39M Administrative Appeals Tribunal Act 1975 (Cth) s 44(1) Collector of Customs v Pozzolanic Enterprises Pty Ltd (1993) 43 FCR 280 discussed Barnsdall v Federal Commissioner of Taxation (1988) 19 ATR 1352 distinguished A W Furse No 5 Will Trust (The Trustee for the Estate of) v Federal Commissioner of Taxation 91 ATC 4007 distinguished Granby Pty Ltd v Federal Commissioner of Taxation 95 ATC 4240 distinguished Hayes v Federal Commissioner of Taxation (1956) 96 CLR 47 cited Collector of Customs v AGFA-Gevaert Ltd (1996) 186 CLR 389 discussed Canwest Global Communications Corporation v Australian Broadcasting Authority (1998) 82 FCR 46 distinguished