Star City Pty Limited v Commissioner of Taxation [2007] FCA 1701

FEDERAL COURT OF AUSTRALIA

Star City Pty Limited v Commissioner of Taxation [2007] FCA 1701 TAXATION – Income tax avoidance scheme – Meaning and application of 'scheme,' 'tax benefit,' and 'dominant purpose' under Part IVA of Income Tax Assessment Act 1936 (Cth) – Whether series of disjointed steps may be considered a 'scheme' – Whether a 'tax benefit' is obtained where no reasonable alternative form (ie, 'alternative postulate') of transaction was available – Whether 'dominant purpose' of transaction was to obtain tax benefit where form and structure were subject to constraints outside control of party taking deduction – Meaning of 'incurrence,' 'capital outgoing,' and 'revenue outgoing' – When an expenditure is incurred in relation to producing assessable income – When lump-sum or up-front lease payment is a non-deductible outgoing of capital or of a capital nature or deductible revenue outgoing – Penalties – Whether position is 'reasonably arguable'

CONTRACTS – Admissibility of extrinsic evidence where contractual language read in context is unambiguous – Contemporaneously executed documents as context in interpreting contract – Objective factual background of contract – Relevant factual matrix of contract – Surrounding circumstances and background – Whether negotiations are part of objective factual background to be used in contract interpretation – Relevance of communications between entities or persons not party to the contract PRACTICE AND PROCEDURE – Court books – Relevance and admissibility of evidence – Whether joint or consensual tender of evidence may be made without consideration of relevance and admissibility Casino Control Act 1992 (NSW) ss 3, 4(1), 5, 6, 7, 9, 10, 18, 19, 21, 114, 115, 116, 120, 133, 140 Evidence Act 1995 (Cth) s 55 Income Tax Assessment Act 1936 (Cth), ss 51(1), 177A, 177C, 177D, 177F, 224, 225, 226, 226K, 226L, 226AA Income Tax Assessment Act 1997 (Cth) ss 1-3, 8-1 Taxation Administration Act 1953 (Cth) ss 284-145, 284-160