Ashwick (Qld) No 127 Pty Ltd (ACN 010 577 456) v Commissioner of Taxation [2009] FCA 1388

FEDERAL COURT OF AUSTRALIA

Ashwick (Qld) No 127 Pty Ltd (ACN 010 577 456) v Commissioner of Taxation [2009] FCA 1388 TAXATION – deductible expenses – written-off bad debts – whether deductible under s 25-35, Income Tax Assessment Act 1936 (Cth) or s 8-1, Income Tax Assessment Act 1997 (Cth) – whether debts incurred in the "ordinary course of… business" – intra-group debt arrangements.

TAXATION – deductible expenses – whether interest expenses incurred "in carrying on a business" in circumstances of winding down of sections of corporate group.

TAXATION – deductible expenses – deductibility of losses transferred to corporate group members.

TAXATION – avoidance – Income Tax Assessment Act 1936 (Cth), Pt IVA – whether "scheme" for s 177A(1) – whether coherent course of conduct engaged in – existence and nature of benefit derived.

Income Tax Assessment Act 1936 (Cth) Income Tax Assessment Act 1997 (Cth)

Australian National Hotels Ltd v Federal Commissioner of Taxation (1988) 19 FCR 234 BHP Billiton Petroleum (Bass Strait) Pty Ltd v Commissioner of Taxation (2002) 126 FCR 119 Coal Developments (German Creek) Pty Ltd v Federal Commissioner of Taxation (2008) 166 FCR 140 Commissioner of Taxation v Bivona Pty Ltd (1990) 21 FCR 562 Commissioner of Taxation (SA) v The Executor Trustee and Agency Company of SA Limited (1938) 63 CLR 108 Commissioner of Taxation v Unilever Australia Securities Limited (1995) 56 FCR 152 Cross (Inspector of Taxes) v London & Provincial Trust Ltd [1938] 1 KB 792 Edgelow v MacElwee [1918] 1 KB 205 Fairway Estates Pty Ltd v Federal Commissioner of Taxation (1970) 123 CLR 153 Federal Commissioner of Taxation v Consolidated Press Holdings Ltd (2001) 207 CLR 235 Federal Commissioner of Taxation v Firth (2003) 120 FCR 450 Federal Commissioner of Taxation v Hart (2004) 217 CLR 216 Federal Commissioner of Taxation v R & D Holdings Pty Ltd (2007) 160 FCR 248 Federal Commissioner of Taxation v Total Holdings (Aust) Pty Ltd (1979) 24 ALR 401 Fletcher v Federal Commissioner of Taxation (1991) 173 CLR 1 Franklin's Selfserve Pty Ltd v Federal Commissioner of Taxation (1970) 125 CLR 52 Henderson v Federal Commissioner of Taxation (1969) 119 CLR 612 Hooker Rex Pty Limited v Commissioner of Taxation (1988) 79 ALR 181 Hungier v Grace (1972) 127 CLR 210 J Rowe & Son Pty Ltd v Federal Commissioner of Taxation (1970-71) 124 CLR 421 Kidston Goldmines Ltd v Commissioner of Taxation (1991) 30 FCR 77 Macquarie Finance Ltd v Commissioner of Taxation (2005) 146 FCR 77 North Australia Pastoral Co Ltd v Federal Commissioner of Taxation (1944) 71 CLR 623 Northern Engineering Pty Ltd v Federal Commissioner of Taxation (1979) 42 FLR 301 Odhams Press v Cook [1940] 3 All ER 15 Peabody v Federal Commissioner of Taxation (1994) 181 CLR 359 Permanent Trustee Co (Executors of F H Prior dec) v Federal Commissioner of Taxation (1940) 6 ATD 5 Richard Walter Pty Ltd v Commissioner of Taxation (1995)95 ATC 4440 Spassked Pty Ltd v Federal Commissioner of Taxation (No 5) (2003) 197 ALR 553 Spassked Pty Ltd v Federal Commissioner of Taxation (2003) 136 FCR 441 Stage Club Ltd v Millers Hotel Pty Ltd (1981) 150 CLR 535 Steele v Deputy Commissioner of Taxation (1999) 197 CLR 459 St Lucia Usines & Estates Co Ltd v Colonial Treasurer of St Lucia [1924] AC 508 Ure v Commissioner of Taxation (1981) 50 FLR 219