Commissioner of Taxation v AP Energy Investments Pty Ltd [2016] FCA 577

FEDERAL COURT OF AUSTRALIA

Commissioner of Taxation v AP Energy Investments Pty Ltd [2016] FCA 577 File number: WAD 367 of 2013

Judge: MCKERRACHER J

Date of judgment: 25 May 2016

Catchwords: ADMINISTRATIVE LAW – preliminary issue – scope of s 44 of the Administrative Appeals Tribunal Act 1975 (Cth) – whether grounds of appeal stated question or questions of law – whether appeal competent TAXATION – components of the asset 'mining information' for the purposes of Div 855 of the Income Tax Assessment Act 1997 (Cth) TAXATION – market valuation of 'mining information' undertaken for the purposes of s 855-30(2) of the Income Tax Assessment Act 1997 (Cth) – test in Spencer v Commonwealth (1907) 5 CLR 418 – whether the sunk cost methodology is the appropriate basis for ascertaining the market value of 'mining information' TAXATION – Administrative Law – whether the Administrative Appeals Tribunal failed to exercise its decision-making power by failing to adequately set out the basis of its reasoning and the findings of fact, evidence or law on which its decision is reached

Legislation: Administrative Appeals Tribunal Act 1975 (Cth) s 44 Income Tax Assessment Act 1997 (Cth) ss 40-730(8), 102-5, 108-5, 855A, 855-5(2)(b), 855-10(1)(a), s 855-15, 855-30(2), 855-30(3)(b)

Cases cited: Abrahams v Federal Commissioner of Taxation (1944) 70 CLR 23 AP Energy Investments Limited and Commissioner of Taxation [2013] AATA 626 Boland v Yates Property Corporation Pty Ltd (1999) 167 ALR 675 Civil Aviation Safety Authority v Central Aviation Pty Ltd [2009] FCA 49 Commissioner of State Taxation (WA) v Nischu Pty Ltd (1991) 4 WAR 437 Commissioner of Taxation v Dalco (1990) 168 CLR 614 Commissioner of Taxation v Haritos [2015] HCATrans 337 Commissioner of Taxation v Resource Capital Fund III LP (2014) 225 FCR 290 Commissioner of Taxation of the Commonwealth of Australia v Resource Capital Fund III LP (No 2) [2014] FCAFC 54 Dornan v Riordan (1990) 24 FCR 564 Gauci v Commissioner of Taxation (Cth) (1975) 135 CLR 81 Haritos v Commissioner of Taxation (2015) 233 FCR 315 Nischu Pty Ltd v Commissioner of State Taxation (WA) (1990) 21 ATR 391 Osland v Secretary to the Department of Justice (2010) 241 CLR 320 Repatriation Commission v O'Brien (1985) 155 CLR 422 Resource Capital Fund III LP v Commissioner of Taxation [2013] FCA 363 Spencer v Commonwealth (1907) 5 CLR 418