SPI PowerNet Pty Ltd v Commissioner of Taxation [2014] FCA 261

FEDERAL COURT OF AUSTRALIA

SPI PowerNet Pty Ltd v Commissioner of Taxation [2014] FCA 261 Citation: SPI PowerNet Pty Ltd v Commissioner of Taxation [2014] FCA 261

Parties: SPI POWERNET PTY LTD v COMMISSIONER OF TAXATION

File number(s): VID 330 of 2012 Parties: SP AUSTRALIA NETWORKS (TRANSMISSION) LTD v COMMISSIONER OF TAXATION

File number(s): VID 331 of 2012 Judge: PAGONE J Date of judgment: 25 March 2014

Catchwords: TAXATION – construction of s 124R(5) of the Income Tax Assessment Act 1936 (Cth) – whether determination of amount of deduction depends upon exercise of discretion by Commissioner – whether taxpayer required to show error in exercise of discretion – relevance of value of unit of industrial property to determination of amount to be taken to be purchase price. TAXATION – Division 10B of the Income Tax Assessment Act 1936 (Cth) – determination of cost of unit of industrial property for purposes of s 124R(5) – where no separate purchase price allocated to unit of industrial property – determination to be made by reference to objectively ascertainable matters – whether value of unit of industrial property relevant to determination. TAXATION – application of s705-35(1)(c) of the Income Tax Assessment Act 1997 (Cth) – valuation of assets for purposes of allocation of remaining allocable cost amount – whether valuation report prepared prior to litigation admissible as independent expert report on value. TAXATION – challenge to penalty imposed pursuant to s 284-75(2) of Schedule 1 to the Taxation Administration Act 1953 (Cth) – whether taxpayer adopted 'reasonably arguable position' within meaning of s 284-15 – identification of what was argued for.