Stallion (NSW) Pty Ltd v Commissioner of Taxation of the Commonwealth of Australia [2019] FCA 1306

FEDERAL COURT OF AUSTRALIA

Stallion (NSW) Pty Ltd v Commissioner of Taxation of the Commonwealth of Australia [2019] FCA 1306 File number: NSD 197 of 2018

Judge: THAWLEY J

Date of judgment: 19 August 2019

Catchwords: TAXATION – appeal against objection decisions deemed by s 14ZYA(3) to have been made by the Commissioner of Taxation under s 14ZY(1) of the Taxation Administration Act 1953 (Cth) – whether taxpayer was entitled to decreasing luxury car tax adjustments under the A New Tax System (Luxury Car Tax) Act 1999 (Cth) and input tax credits under the A New Tax System (Goods and Services Tax) Act 1999 (Cth) – whether taxpayer acquired luxury cars as agent for principal – whether taxpayer on-sold luxury cars – whether 'sham'

Legislation: A New Tax System (Goods and Services Tax) Act 1999 (Cth) ss 7-1, 7-5, 7-15, 9-20, 11-5, 11-15, 11-20, 15-15, 17-5, 153-5(1), 195-1, Div 57, Subdivs 153-A, 153-B A New Tax System (Goods and Services Tax) Bill 1998 A New Tax System (Luxury Car Tax) Act 1999 (Cth) ss 2-1, 2-5(2), 2-10(1), 2-10(2), 5-5, 5-10, 5-15(1), 5-15(2), 5-15 (3), 9-1, 9-5(1), 9-5(2), 13-5, 13-10, 13-15(2), 15-25, 15-30, 23-10(1), 23-10(2), 25-1, 27-1 Corporations Act 2001 (Cth) s 1305 Income Tax Assessment Act 1936 (Cth) Part IVA Motor Dealers and Chattel Auctioneers Act 2014 (Qld) s 73(1) Motor Dealers and Repairers Act 2013 (NSW) Taxation Administration Act 1953 (Cth) ss 14ZYA(3), 14ZY(1), 14ZZO(b)

Cases cited: Australian Securities and Investments Commission v Rich (2009) 236 FLR 1 Bateman Television Ltd (in liq) v Bateman and Thomas [1971] NZLR 453 Blatch v Archer (1774) 1 Cowp 63 Calverley v Green (1984) 155 CLR 242 Commercial Union Assurance Co of Australia Ltd v Ferrcom Pty Ltd (1991) 22 NSWLR 389 Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia v Australian Competition and Consumer Commission (2007) 162 FCR 466 Crown Estates (Sales) Pty Ltd v Commissioner of Taxation [2015] AATA 949 Crown Estates (Sales) Pty Ltd v Commissioner of Taxation [2016] FCA 335 Equuscorp Pty Ltd v Glengallan Investments Pty Ltd (2004) 218 CLR 471 Fabry v Commissioner of Taxation 2001 ATC 4,697 Federal Commissioner of Taxation v Suttons Motors (Chullora) Wholesale Pty Ltd (1985) 157 CLR 277 Freeman & Lockyer v Buckhurst Park Properties (Magnal) Ltd [1964] 2 QB 480 Georges v Seaborn International (Trustee), in the matter of Sonray Capital Markets Pty Ltd (in liq) [2012] FCA 75 Hadjiloucas v Crean [1988] 1 WLR 1006 Kuhl v Zurich Financial Services Australia Ltd (2011) 243 CLR 361 Melbourne Car Shop Pty Ltd v Federal Commissioner of Taxation [2010] FCA 373 Millar v Commissioner of Taxation (2016) 243 FCR 302 Milliman v Rochester Ry Co 3 App Div 109; 39 NYS 274 (1896) Ong v Lottwo Pty Ltd (in liq) [2013] SASCFC 57 Peterson v Moloney (1951) 84 CLR 91 Raftland Pty Ltd v Commissioner of Taxation (2008) 238 CLR 516 Richard Walter Pty Ltd v Commissioner of Taxation (1996) 67 FCR 243 Saga Holidays Ltd v Commissioner of Taxation (2006) 156 FCR 256 Siu Yin Kwan v Eastern Insurance Co Ltd [1994] 2 AC 199 Snook v London and West Riding Investments Ltd [1967] 2 QB 786