Noza Holdings Pty Ltd v Commissioner of Taxation [2011] FCA 46

FEDERAL COURT OF AUSTRALIA

Noza Holdings Pty Ltd v Commissioner of Taxation [2011] FCA 46 Citation: Noza Holdings Pty Ltd v Commissioner of Taxation [2011] FCA 46

Parties: NOZA HOLDINGS PTY LTD (ACN 098 410 881) v COMMISSIONER OF TAXATION

File number(s): VID 758 of 2009, VID 759 of 2009, VID 760 of 2009, VID 761 of 2009, VID 762 of 2009, VID 763 of 2009

Parties: ITW AFC PTY LTD (ACN 091 191 865) v COMMISSIONER OF TAXATION

File number: VID 764 of 2009

Parties: CS FINANCING I LLC v COMMISSIONER OF TAXATION

File number: VID 908 of 2009

Judge: GORDON J

Date of judgment: 4 February 2011

Catchwords: CORPORATIONS – whether declaration of dividend created a debt pursuant to s 254V(2) of the Corporations Act 2001 (Cth) – validity of the declaration of dividend TAXATION – deductibility of dividends – whether an amount paid by way of endorsement of a promissory note is deductible pursuant to s 25-90 of the Income Tax Assessment Act 1997 (Cth) – whether there were sufficient "accumulated earnings" to pay dividends – whether payment of dividends amounts to derivation of income from a foreign source – whether the income is exempt income pursuant to s 23AJ of the Income Tax Assessment Act 1936 (Cth) – meaning of "debt interest" and "debt deduction" – whether deductible on incurred basis - whether full amount deductible TAXATION – Part IVA – existence of a tax benefit – whether scheme entered into or carried out for the dominant purpose of obtaining a tax benefit TAXATION – Penalties – whether penalty should be reduced to nil pursuant to s 284-145 of Schedule 1 to the Taxation Administration Act 1953 (Cth) – whether penalty should be reduced for voluntary disclosure of shortfall amount TAXATION – withholding tax – whether Part IVA authorised the Commissioner to determine that dividend paid was subject to dividend withholding tax under s 128B of the Income Tax Assessment Act 1936 (Cth)