Quality Publications Australia Pty Limited v Commissioner of Taxation [2012] FCA 256

FEDERAL COURT OF AUSTRALIA

Quality Publications Australia Pty Limited v Commissioner of Taxation [2012] FCA 256 Citation: Quality Publications Australia Pty Limited v Commissioner of Taxation [2012] FCA 256

Parties: QUALITY PUBLICATIONS AUSTRALIA PTY LIMITED (ACN 096 396 593) v COMMISSIONER OF TAXATION

File number: NSD 275 of 2009

Judge: EDMONDS J

Date of judgment: 28 March 2012

Catchwords: INCOME TAX – Part 3-1 Income Tax Assessment Act 1997 (Cth): Capital Gains and Losses – CGT Event A1: Disposal of a CGT asset (s 104-10) – cost base of assets under Division 110 – capital proceeds under Division 116 – whether general rule (a) in s 116-20(1) applied – whether money received or entitled to be received in respect of event happening – or whether general rule (b) in s 116-20(1) applied – whether receivable received in respect of event happening and, if so, the market value of that receivable – alternatively whether market value substitution rule in s 116-30(2)(b)(i) applied – whether taxpayer and acquiring entity were dealing with each other at arm's length in connection with the event Held: General rule (a) in s 116-20(1) applied; assessment of income tax not shown to be excessive.

Legislation: Income Tax Assessment Act 1997 (Cth) ss 102-5, 104-10, 116-20, s 116-30 Taxation Administration Act 1953 (Cth) ss 14ZZ, 284-75, 284-90, Sch 1

Cases cited: (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165 applied Branir Pty Ltd v Owston Nominees (No. 2) Pty Ltd (2001) 117 FCR 424 cited Bray v Commissioner of Taxation (No 2) (1971) 123 CLR 348 applied Commissioner of Taxation v AXA Asia Pacific Holdings Ltd (2010) 189 FCR 204 approved Commissioner of Taxation v BHP Billiton Limited (2011) 277 ALR 224 applied Commissioner of Taxation v R&D Holdings Pty Ltd (2007) 160 FCR 248 applied Commissioner of Taxation v Rozman (2010) 186 FCR 1 applied Fadden v Commissioner of Taxation (1945) 70 CLR 555 applied Franklins Pty Ltd v Metcash Trading Ltd (2009) 264 ALR 15 applied Norman v Commissioner of Taxation (1963) 109 CLR 9 cited Pacific Carriers Ltd v BNP Paribas (2004) 218 CLR 451 applied Pro-Image Studios v Commonwealth Bank of Australia (1991) 4 ASCR 586 applied Re Ruwaldt (1931) 3 ABC 245 cited Re Smith (1933) 6 ABC 49 cited Re Stevens (1929) 1 ABC 90 cited Sheahan v Carrier Air Conditioning Pty Ltd (1997) 189 CLR 407 cited William Brandt's Sons & Company Ltd v Dunlop Rubber Co Ltd [1905] AC 454 cited Proctor C (Ed), Goode On Payment Obligations in Commercial and Financial Transactions (2nd ed, Sweet & Maxwell, 2009)