Victoria Power Networks Pty Ltd v Commissioner of Taxation [2019] FCA 77

FEDERAL COURT OF AUSTRALIA

Victoria Power Networks Pty Ltd v Commissioner of Taxation [2019] FCA 77 File numbers: VID 1126 of 2017 VID 1127 of 2017 VID 1128 of 2017 VID 1129 of 2017

Judge: MOSHINSKY J

Date of judgment: 7 February 2019

Catchwords: TAXATION – assessable income – income according to ordinary concepts – non-cash business benefits – where electricity distributors were required to connect customers to the electricity network upon request – where the connection works were carried out either by the distributor or by the customer – where, in relation to the first situation, if the connection was 'uneconomic', the customer paid a cash contribution to the distributor – whether the cash contribution was income according to ordinary concepts – where, in relation to the second situation, the customer was required to transfer the relevant assets to the distributor and received a rebate from the distributor – where, in relation to that situation, if the connection was 'uneconomic', the rebate was the estimated cost of construction less a customer contribution – whether the customer contribution was income according to ordinary concepts – whether the transferred assets constituted a non-cash business benefit – consideration of the amount to be included in the distributor's assessable income pursuant to s 21A of the Income Tax Assessment Act 1936 (Cth) – consideration of the arm's length value of the transferred assets

Legislation: Income Tax Assessment Act 1936 (Cth), ss 21, 21A, 136AA Income Tax Assessment Act 1997 (Cth), ss 6-5, 20-30 Taxation Administration Act 1953 (Cth), s 14ZZ Federal Court Rules 2011, r 33.03 Electricity Industry Act 2000 (Vic)