BHP Billiton Finance Limited v Commissioner of Taxation [2009] FCA 276

FEDERAL COURT OF AUSTRALIA

BHP Billiton Finance Limited v Commissioner of Taxation [2009] FCA 276

TAXATION – deductions – bad debt claims – business of lending money – conduct undertaken in the ordinary course of business of lending money – taxpayer, internal financier to a group of companies – Income Tax Assessment Act 1997 (Cth), ss 25-35(1)(b), (1)(a), 8-1

TAXATION – Commissioner's power to made a determination under s 177F without issuing an assessment – Income Tax Assessment Act 1936 (Cth), s 169A

TAXATION – Income Tax Assessment Act 1936 (Cth), Part IVA

TAXATION – limited recourse debt – debt property in limited recourse debt – Income Tax Assessment Act 1997 (Cth), Div 243

Corporations Act 2001 (Cth) ss 18-21, 45A, 119, 124, 125, 555, 1305, 1306 Financial Institutions Duty Act 1982 (Vic) Income Tax Assessment Act 1936 (Cth) ss 6-1, 99A, 166A, 169A(3), 177F, 177G, Pt IVA, sch 2C div 245 Income Tax Assessment Act 1997 (Cth) ss 8-1, 25-35, 995-1, div 40, div 243, div 974, Pt 3-90 Taxation Administration Act 1953 (Cth) ss 14ZZ, 14ZZO

AGC (Advances) Ltd v Federal Commissioner of Taxation (1975) 132 CLR 175 Agricultural and Rural Finance Pty Ltd v Gardiner (2008) 251 ALR 322 American Leaf Blending Co Sdn Bhd v Director-General of Inland Revenue [1979] AC 676 Australian and New Zealand Savings Bank Ltd v Federal Commissioner of Taxation (1992) 92 ATC 4630 Ashwick (Qld) No 127 Pty Ltd v Commissioner of Taxation [2008] FCA 853 AVCO Financial Services Ltd v Federal Commissioner of Taxation (1982) 150 CLR 510 Bailey v Federal Commissioner of Taxation (1977) 136 CLR 214 Bank of New South Wales v Brown (as official liquidator of Tom the Cheap (WA) Pty Ltd (in liq)) (1983) 151 CLR 514 BP Refinery (Westernport) Pty Ltd v Shire of Hastings(1977) 180 CLR 266 Briggs v James Hardie & Co Pty Ltd (1989) 16 NSWLR 549 Bristol and West Building Society v Mothew [1998] Ch 1 Brookton Co-operative Society Ltd v Federal Commissioner of Taxation (1981) 147 CLR 441 Cameron Brae Pty Ltd v Federal Commissioner of Taxation (2007) 161 FCR 468 Carapark Holdings Limited v Commissioner of Taxation (1967) 115 CLR 653 Charterbridge Corporation Ltd v Lloyds Bank Ltd [1970] Ch 62 Coles Myer Finance Ltd v Federal Commissioner of Taxation (1993) 176 CLR 640 Commissioner of Taxation v Bivona (1990) 21 FCR 562 Commissioner of Taxation v E A Marr and Sons (Sales) Ltd (1984) 2 FCR 326 Commissioner of Taxation v Jackson(1990) 27 FCR 1 Commissioner of Taxation v Stokes (1996) 72 FCR 160 Consolidated Press Holdings Ltd v Federal Commissioner of Taxation (1998) 88 FCR 151 Dakota Bank v Eiesland, 645 NW 2d 177 (Minn App, 2002) Daly v Sydney Stock Exchange Ltd (1986) 160 CLR 371 Dan v Federal Commissioner of Taxation (No 2) (2000) 44 ATR 338 Dennis Willcox Pty Ltd v Federal Commissioner of Taxation (1988) 19 ATR 1122 Deputy Federal Commissioner of Taxation for New South Wales v Brown (1958) 100 CLR 32 Dinshaw v Commissioner of Income Tax (Bombay) (1934) 50 TLR 527 Equiticorp Finance Ltd (in liq) v Bank of New Zealand (1993) 32 NSWLR 50 Esanda v Burgess [1984] 2 NSWLR 139 Fairway Estates Pty Ltd v Federal Commissioner of Taxation (1970) 123 CLR 153 Farrow Finance Co Ltd (in liq) v Farrow Properties Pty Ltd (in liq) (1997) 26 ACSR 544 Federal Coke Co Pty Ltd v Federal Commissioner of Taxation (1977) 34 FLR 375 Federal Commissioner of Taxation v Australian New Zealand Savings Bank Ltd (1994) 181 CLR 466 Federal Commissioner of Taxation v Dalco (1990) 168 CLR 614 Federal Commissioner of Taxation v Firth (2002) 120 FCR 450 Federal Commissioner of Taxation v Linter Textiles Australia Ltd (in liq) (2005) 220 CLR 592 Federal Commissioner of Taxation v Macquarie Health Corporation Ltd (1998) 88 FCR 451 Federal Commissioner of Taxation v Marshall & Brougham Pty Ltd (1987) 17 FCR 541 Federal Commissioner of Taxation v Munro (1926) 38 CLR 153 Federal Commissioner of Taxation v Orica Ltd (1998) 194 CLR 500 Federal Commissioner of Taxation v R & D Holdings Pty Ltd (2007) 160 FCR 248 Federal Commissioner of Taxation v Sidney Williams (Holdings) Ltd (1957) 100 CLR 95 Federal Commissioner of Taxation v Total Holdings (Aust) Pty Ltd (1979) 79 ATC 4279 Federal Commissioner of Taxation v Unilever Australia Securities Limited (1995) 56 FCR 152 Ferguson v Commissioner of Taxation (1979) 26 ALR 307 Franklin's Selfserve Pty Ltd v Federal Commissioner of Taxation (1970) 125 CLR 52 Freeman v Complex Computing Co Inc, 119 F 3d 1044 (2nd Cir, 1997) Gate Gourmet Australia Pty Ltd (in liq) v Gate Gourmet Holding AG [2004] NSWSC 149 G E Crane Sales Pty Ltd v Federal Commissioner of Taxation (1971) 126 CLR 177 Giumelli v Giumelli (1999) 196 CLR 101 Guest v Federal Commissioner of Taxation (2007) 65 ATR 815 Hobart Bridge Co Ltd v Federal Commissioner of Taxation (1951) 82 CLR 372 Hooker Rex Pty Ltd v Federal Commissioner of Taxation (1988) 88 ATC 4392 Hope v Bathurst City Council (1980) 144 CLR 1 Inland Revenue Commissioners v Herdman [1969] 1 All ER 495 Kolotex Hosiery (Australia) Pty Ltd v Federal Commissioner of Taxation (1975) 132 CLR 535 Kordan Pty Ltd v Federal Commissioner of Taxation (2000) 46 ATR 191 Leo v Kerr-McGee, Civ A No 93-1107(JEI), 1996 WL 254054 (D NJ, 10 May 1996) Levin & Co Ltd v Inland Revenue Commissioner (NZ) [1963] NZLR 801 Lighthouse Philatelics Pty Ltd v Commissioner of Taxation (1991) 32 FCR 148 Lonrho Plc v Fayed (No 2) [1992] 1 WLR 1 Magna Alloys & Research Pty Ltd v Federal Commissioner of Taxation (1980) 80 ATC 4582 MacCormick v Federal Commissioner of Taxation (1984) 158 CLR 622 Malouf v Federal Commissioner of Taxation (2008) 68 ATR 470 McAndrew v Federal Commissioner of Taxation (1956) 98 CLR 263 McLarty v R (2008) 293 DLR (4th) 659 Mathew v Blackmore (1857) 156 ER 1409 Mills v Mills (1938) 60 CLR 150 NEAT Domestic Trading Pty Ltd v AWB Ltd (2003) 216 CLR 277 Newtronics Pty Ltd (rec & mgrs appd) (in liq) v Atco Controls Pty Ltd [2008] VSC 566 Olsson v Dyson (1969) 120 CLR 365 NZI Capital Corporation Pty Ltd v Child (1991) 23 NSWLR 481 Point v Federal Commissioner of Taxation (1970) 119 CLR 453 Pioneer Concrete Services Ltd v Yelnah Pty Ltd (1986) 5 NSWLR 254 Pridecraft Pty Ltd v Federal Commissioner of Taxation (2004) 213 ALR 450 Puzey v Commissioner of Taxation (2003) 131 FCR 244 R v New Queensland Copper Co Ltd (1917) 23 CLR 495 Re United Railways of Havana and Regla Warehouses Ltd [1960] Ch 52 Saraswati v The Queen (1991) 172 CLR 1 Seltzer v IC Optics Ltd,339 F Supp 2d 601 (D NJ, 2004) Scarf v Jardine (1882) 7 App Cas 345 Spassked Pty Ltd v Commissioner of Taxation (2003) 136 FCR 441 Spedley Securities Ltd (in liq) v Greater Pacific Investments Pty Ltd (in liq) (1992) 30 NSWLR 185 Tomkinson v First Pennsylvania Banking and Trust Co [1961] AC 1007 Tweddle v Federal Commissioner of Taxation (1942) 180 CLR 1 United States v Bestfoods, 118 SCt 1876 (1998) Walker v Wimborne (1976) 137 CLR 1 Walstern v Federal Commissioner of Taxation (2003) 138 FCR 1 Woolcombers (WA) v Commissioner of Taxation (1996) 66 FCR 66