BHP Petroleum (Bass Strait) Pty Ltd v Commissioner of Taxation [2002] FCA 189

FEDERAL COURT OF AUSTRALIA

BHP Petroleum (Bass Strait) Pty Ltd v Commissioner of Taxation [2002] FCA 189

TAXATION –income tax – petroleum resource rent tax - assessable income – consideration receivable – accrual and receipts basis – when income is "derived" – "truth and reality" of situation – whether assessable income derived at date of supply pursuant to contract or at time contracting parties agreed on amounts payable in settlement of dispute between them – circumstances in which income is not derived on delivery of property under a sale contract DISPUTE RESOLUTION – commercial arbitration – effect of arbitral Award – Award merely declaratory of scope of parties' contractual rights and obligations – construction of arbitration clauses – circumstances in which an arbitration clause is a condition precedent to liability or commencement of an action Income Tax Assessment Act 1936 (Cth) Petroleum Resource Rent Tax Act 1987 (Cth) Petroleum Resource Rent Tax Assessment Act 1987 (Cth) Petroleum Resource Rent Legislation Amendment Act 1991 (Cth) Taxation Administration Act 1953 (Cth) Commercial Arbitration Act 1984 (Vic)

West v Miller (1868) 6 LR Eq 59 cited Clyne v Deputy Commissioner of Taxation (1981) 150 CLR 1 cited Henderson v Federal Commissioner of Taxation (1970) 119 CLR 612 cited Commissioner of Taxes (S.A.) v Executor Trustee and Agency Co of South Australia Ltd (1938) 63 CLR 108 referred Brent v Federal Commissioner of Taxation (1971) 125 CLR 418 referred Ballarat Brewing Co Ltd v Federal Commissioner of Taxation (1951) 82 CLR 364 referred Barratt v Commissioner of Taxation (1992) 36 FCR 222 considered WS Try Ltd v Johnson [1946] 1 All ER 532 cited Racecourse Betting Control Board v Secretary for Air [1944] 1 Ch 114 referred Hi-Fert Pty Ltd v Kiukiang Maritime Carriers Inc (No 5) (1998) 90 FCR 1 cited Upper Hunter County District Council v Australian Chilling and Freezing Co Ltd (1968) 118 CLR 429 cited Onerati v Phillips Constructions Pty Ltd (in liq) (1989) 16 NSWLR 730 referred Anderson v G H Michell & Sons Ltd (1941) 65 CLR 543 considered Proprietors of Strata Plan 3771 v Travmina Pty Ltd (1989) 4 BCL 91 cited Nauru Phosphate Royalties Trust v Matthew Hall Mechanical and Electrical Engineers Pty Ltd [1994] 2 VR 386 cited Christmas Island Resort Pty Ltd v Geraldton Building Co Pty Ltd (No 5) (1997) 18 WAR 334 cited Imperial Leatherware Co Pty Ltd v Macri & Marcellino Pty Ltd (1991) 22 NSWLR 653 cited J. Rowe & Son Pty Ltd v Federal Commissioner of Taxation (1971) 124 CLR 421 cited Gasparin v Commissioner of Taxation (1994) 50 FCR 73 considered Farnsworth v Federal Commissioner of Taxation (1949) 78 CLR 504 considered Federal Commissioner of Taxation v Australian Gas Light Co (1983) 52 ALR 691 considered Commonwealth-New Guinea Timbers Ltd v The Chief Collector of Taxes [1973] PNGLR 388 referred Federal Commissioner of Taxation v National Commercial Banking Corporation of Australia (1983) 72 FLR 116 cited Commonwealth Aluminium Corporation Ltd v Federal Commissioner of Taxation (1978) 32 FLR 210 cited G E Crane Sales Pty Ltd v Federal Commissioner of Taxation (1971) 126 CLR 177 referred Arthur Murray (NSW) Pty Ltd v Federal Commissioner of Taxation (1965) 114 CLR 314 referred