Reef Networks Pty Ltd v Deputy Commissioner of Taxation [2003] FCA 1552

FEDERAL COURT OF AUSTRALIA

Reef Networks Pty Ltd v Deputy Commissioner of Taxation [2003] FCA 1552

INCOME TAX – private ruling – allowable deductions – depreciation – whether under the 'arrangement' the 'plant' would be used for the purpose of gaining or producing assessable income Taxation Administration Act 1953 (Cth) s 8-1(1), 14ZAA(2), 14ZAAA, 14ZAF, 14ZZ, 14ZZO(b)(iii), 40-25, 40-25(2), 40-25(7), 42-15, 42-170(1), 995-1, Part IVAA Income Tax Assessment Act 1997 (Cth) Division 42 Income Tax Assessment Act 1936 (Cth) s 51(1) New Business Tax System (Capital Allowances) Act 2001 (Cth) Bellinz v Commissioner of Taxation (1998) 84 FCR 154 cited Commissioner of Taxation v McMahon (1997) 79 FCR 127 cited Federal Commissioner of Taxation v Payne (2000) 202 CLR 93 referred to Goldsworthy Mining Ltd v Federal Commissioner of Taxation (1973) 128 CLR 199 cited Goldsworthy Mining Ltd v Federal Commissioner of Taxation (1975) 132 CLR 463 referred to John Fairfax & Sons Pty Ltd v Federal Commissioner of Taxation (1959) 101 CLR 30 referred to Pettigrew v Federal Commissioner of Taxation (1990) 92 ALR 261 referred to Quarries Ltd v Federal Commissioner of Taxation (1961) 106 CLR 310 referred to Ronpibon Tin NL and Tong Kah Compound NL v Federal Commissioner of Taxation (1949) 78 CLR 47 referred to Ryde Municipal Council v Macquarie University (1978) 139 CLR 633 referred to REEF NETWORKS PTY LTD v DEPUTY COMMISSIONER OF TAXATION N 706 OF 2003 HELY J 22 DECEMBER 2003 SYDNEY IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY N 706 OF 2003

BETWEEN: REEF NETWORKS PTY LTD

APPLICANT

AND: DEPUTY COMMISSIONER OF TAXATION

RESPONDENT

JUDGE: HELY J

DATE OF ORDER: 22 DECEMBER 2003

WHERE MADE: SYDNEY

THE COURT ORDERS THAT: 1. The appeal be upheld. 2. The objection decision is set aside insofar as it determines that the amount of the depreciation deduction otherwise available with respect to the cable should be reduced by 4/12. 3. The respondent pay the costs of these proceedings. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.