Commissioner of Taxation v Miley [2017] FCA 1396

FEDERAL COURT OF AUSTRALIA

Commissioner of Taxation v Miley [2017] FCA 1396 File number: NSD 366 of 2016

Judge: WIGNEY J

Date of judgment: 28 November 2017

Catchwords: TAXATION – appeal from a decision of the Administrative Appeals Tribunal under s 44 of the Administrative Appeals Tribunal Act 1975 (Cth) – where Commissioner of Taxation assessed Respondent as not being entitled to small business capital gains tax concessions under subdivision 152-C of the Income Tax Assessment Act 1977 (Cth) – where Tribunal set aside objection decisions and found that the Respondent satisfied the basic conditions for relief – whether Tribunal erred in so finding – whether Respondent satisfied the minimum net asset value test – proper enquiry for valuing equal third minority shareholding in company – whether value of shares should be discounted for a lack of control PRACTICE AND PROCEDURE – notice of objection to competency of appeal – whether appeal raises a question of law within the meaning of s 44 of the Administrative Appeals Tribunal Act 1975 (Cth)

Legislation: Administrative Appeals Tribunal Act 1975 (Cth) s 44, 44(3) Income Tax Assessment Act 1997 (Cth) Divs 104, 152, 855, Subdivs 152-A, 152-C, ss 995-1, 104-10, 108-5, 116-30, 152-10, 152-15, 152-20, 152-205 Federal Court Rules 2011 (Cth) r 33.21

Cases cited: Abrahams v Commissioner of Taxation (1944) 70 CLR 23 Alcan NT Alumina Pty Ltd v Commissioner of Taxation [2007] NTSC 9; (2007) 208 FLR 159 Attorney-General of Ceylon v Mackie [1952] 2 All ER 775 Australian Gas Light Company v Valuer-General (NSW) (1940) 40 SR (NSW) 126 Boland v Yates Property Corporation Pty Ltd [1999] HCA 64; (1999) 167 ALR 575 Byrne v A J Byrne Pty Limited [2012] NSWSC 667 Commissioner of Inland Revenue v Crossman [1937] AC 26; [1936] 1 All ER 762 Commissioner of State Revenue v Pioneer Concrete (Vic) Pty Ltd (2002) 209 CLR 651 Commissioner of Taxation v AP Energy Investments Pty Limited [2016] FCA 577; (2016) 341 ALR 265 Commonwealth Custodial Services Ltd v Valuer General [2007] NSWCA 365 Enfield City Corporation v Development Assessment Commission (2000) 199 CLR 135 Faraday v McKenzie [2007] FamCA 1626 Federal Commissioner of Taxation v Byrne Hotels Qld Pty Ltd (2011) 196 FCR 524 Federal Commissioner of Taxation v St Helens Farm (ACT) Pty Ltd (1981) 146 CLR 336 Federal Commissioner of Taxation v Westgarth (1950) 81 CLR 396 Haritos v Federal Commissioner of Taxation (2015) 233 FCR 315 HTW Valuers (Central QLD) Pty Ltd v Astonland Pty Ltd (2004) 217 CLR 640 Inez Investments Pty Ltd v Dodd (1979) 26 The Valuer 501 Inland Revenue Commissioners v Gray [1994] STC 360 Inland Revenue Commissioners v Clay [1914] 3 KB 466 International Petroleum Investment Company v Independent Public Business Corporation of Papua New Guinea [2015] NSWCA 363 Marks v GIO Australia Holdings Ltd (1998) 196 CLR 494 McCathie v Federal Commissioner of Taxation (1944) 69 CLR 1 Minister for Public Works (NSW) v Thistlethwayte [1954] AC 475 Mordecai v Mordecai (1988) 12 NSWLR 58 Promenade Investments Pty Limited v New South Wales (1992) 26 NSWLR 203 Raja Vyricherla Narayana Gajapatiraju v The Revenue Divisional Officer, Vizagapatam [1939] AC 302 Repatriation Commission v Hill [2002] FCAFC 192; (2002) 69 ALD 581 Rostam Pty Ltd v Valuer General; Shavran Pty Ltd v Valuer General [2011] NSWLEC 1387 Spencer v The Commonwealth (1907) 5 CLR 418 Trocette Property Co Limited v Greater London Council (1974) 28 P&CR 408