Davies v Deputy Commissioner of Taxation [2015] FCA 773

FEDERAL COURT OF AUSTRALIA

Davies v Deputy Commissioner of Taxation [2015] FCA 773 Citation: Davies v Deputy Commissioner of Taxation [2015] FCA 773

Parties: ALLAN DAVIES v DEPUTY COMMISSIONER OF TAXATION

File number: NSD 696 of 2014

Judge: PERRAM J

Date of judgment: 31 July 2015

Catchwords: TAXATION – employee share schemes – when shares and options were to be brought to tax – whether s 83A-15 of the Income Tax (Transitional Provisions) Act 1997 (Cth) operated where right was merely contingent – whether contingent right to acquire shares can be said to have become a right to acquire shares upon satisfaction of contingency CONTRACTS – conditions precedent – whether obligation to issue shares and options only arose upon satisfaction of conditions – whether conditions went to formation or performance of contract ESTOPPEL – whether promissory estoppel arose

Legislation: Corporations Act 2001 (Cth) s 208 Income Tax Assessment Act 1936 Div 13A, ss 139B, 139D, 139G(1)(c) Income Tax Assessment Act 1997 (Cth) Div 83A, ss 83A-25, 83A-305, 83A-340 Income Tax (Transitional Provisions) Act 1997 (Cth) s 83A-15

Cases cited: Brown v Heffer (1967) 116 CLR 344 DHJPM Pty Ltd v Blackthorn Resources Ltd (2011) 83 NSWLR 728 Federal Commissioner of Taxation v Sara Lee Household & Body Care (Australia) Pty Ltd (2000) 201 CLR 520 Fowler v Federal Commissioner of Taxation (2013) 212 FCR 149 Perri v Coolangatta Investments Pty Ltd (1982) 149 CLR 537 Woodside Energy Ltd v Federal Commissioner of Taxation (2009) 174 FCR 91