Citigroup Pty Limited v Commissioner of Taxation [2010] FCA 826

FEDERAL COURT OF AUSTRALIA

Citigroup Pty Limited v Commissioner of Taxation [2010] FCA 826

Citation: Citigroup Pty Limited v Commissioner of Taxation [2010] FCA 826

Parties: CITIGROUP PTY LIMITED v COMMISSIONER OF TAXATION

File number(s): NSD 45 of 2009 NSD 47 of 2009 NSD 48 of 2009 NSD 995 of 2009 NSD 996 of 2009 NSD 997 of 2009

Judge: EDMONDS J

Date of judgment: 9 August 2010

Catchwords: INCOME TAX – Hong Kong bond transactions involving stripping and sale of interest coupons immediately following subscription for bonds – Hong Kong profits tax on proceeds of sale giving rise to foreign tax credits in Australia: Part IVA of Income Tax Assessment Act 1936 (Cth) ('ITAA 1936') – whether schemes entered into or carried out by taxpayer for dominant purpose of obtaining tax benefit in the form of foreign tax credits so as to entitle Commissioner to cancel tax benefit. Held: Part IVA applied.

Section 204(3) of ITAA 1936 – general interest charge – whether taxpayer liable for general interest charge between date tax due and payable and date of amended determination of foreign tax credits allowed. Held: general interest charge did not apply

Legislation: Income Tax Assessment Act 1936 (Cth) Part IVA

Cases cited: Commissioner of Taxation v Consolidated Press Holdings Ltd (2001) 207 CLR 235 cited Commissioner of Taxation v Hart (2004) 217 CLR 216 applied Commissioner of Taxation v The Myer Emporium Ltd (1987) 163 CLR 199 discussed Commissioner of Taxation v Spotless Services Pty Ltd (1996) 186 CLR 404 applied CPH Property Pty Limited v Commissioner of Taxation (1998) 88 FCR 21 cited Macquarie Finance Ltd v Commissioner of Taxation (2005) 146 FCR 77 cited Re Bolton; Ex parte Beane (1987) 162 CLR 514 applied Vincent v Commissioner of Taxation (2002) 124 FCR 350 cited