Active Sports Management Pty Ltd v Industry Innovation and Science Australia [2024] FCA 1346

FEDERAL COURT OF AUSTRALIA Active Sports Management Pty Ltd v Industry Innovation and Science Australia [2024] FCA 1346 Appeal from: Active Sports Management Pty Ltd and Industry Innovation and Science Australia [2023] AATA 4078

File number(s):

Judgment of: GOODMAN J

Date of judgment: 25 November 2024

ADMINISTRATIVE LAW – appeal from the Administrative Appeals Tribunal decision to affirm a decision of the respondent that claimed activities were not "core R&D activities" within the meaning of s 355-25(1) of the Income Tax Assessment Act 1997 (Cth) (ITAA 1997) – whether the Tribunal erred by not considering or by failing to engage "meaningfully" with the applicant's submissions – error not established Catchwords: ADMINISTRATIVE LAW – whether the Tribunal erred by failing to undertake a genuine independent consideration of the issues arising on the review and instead adopted the respondent's submissions – error not established ADMINISTRATIVE LAW – whether the Tribunal misconstrued s 355-25(1) of the ITAA 1997 – no misconstruction established – in any event the contended error could not be material when the Tribunal found that the applicant had not established other required elements of the definition of "core R&D activities"

Administrative Appeals Tribunal Act 1975 (Cth), ss 25, 33, 43, 44 Legislation: Income Tax Assessment Act 1936 (Cth), s 73B Income Tax Assessment Act 1997 (Cth), ss 355-1, 355-5, 355-20, 355-25, 355-30 Industry Research and Development Act 1986 (Cth), ss 3, 27J, 30D

Active Sports Management Pty Ltd and Industry Innovation and Science Australia [2023] AATA 4078 Aged Care Quality and Safety Commissioner v Amana Community Services Pty Ltd [2024] FCA 1241 Atanaskovic Hartnell Corporate Services Pty Limited v Kelly [2024] FCAFC 137 Beaman v Bond [2017] FCAFC 142; (2017) 254 FCR 480 BVD17 v Minister for Immigration and Border Protection [2019] HCA 34; (2019) 268 CLR 29 Coal of Queensland v Innovation and Science Australia [2021] FCAFC 54; (2021) 285 FCR 286 Comptroller-General of Customs v Pharm-A-Care Laboratories Pty Ltd [2020] HCA 2; (2020); 270 CLR 494 Docklands Science Park Pty Ltd and Innovation Australia [2015] AATA 973 Equality Australia Ltd v Commissioner of the Australian Charities and Not-for-profits Commission [2024] FCAFC 115 GQHC and Commissioner of Taxation (Taxation) [2024] AATA 409 KXXH v Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs [2022] FCAFC 111; (2022) 292 FCR 15 Lakes Oil NL and Innovation and Science Australia (Taxation) [2023] AATA 811 Linfox Australia Pty Ltd v Fair Work Commission [2013] FCAFC 157; (2013) 240 IR 178 Cases cited: LVR (WA) Pty Ltd v Administrative Appeals Tribunal [2012] FCAFC 90; (2012) 203 FCR 166 Manikantan v Secretary, Department of Employment and Workplace Relations [2024] FCAFC 116 Minister for Immigration and Ethnic Affairs v Liang [1996] HCA 6; (1996) 185 CLR 259 Moreton Resources Ltd and Industry Innovation and Science Australia (Taxation) [2022] AATA 3804 MZZZW v Minister for Immigration and Border Protection [2015] FCAFC 133; (2015) 234 FCR 154 National Disability Insurance Agency v KKTB [2022] FCAFC 181; (2022) 295 FCR 379 PKWK and Innovation and Science Australia (Taxation) [2021] AATA 706 Plaintiff M1/2021 v Minister for Home Affairs [2022] HCA 17; (2022) 275 CLR 582 Rix's Creek Pty Ltd; Bloomfield Collieries Pty Ltd and Innovation Australia [2017] AATA 645 Royal Wins Pty Ltd and Innovation and Science Australia [2020] AATA 4320 Transcon Holding Pty Ltd v Aged Care Quality and Safety Commissioner [2023] FCAFC 60; (2023) 297 FCR 39 Ultimate Vision Inventions Pty Ltd v Innovation and Science Australia [2023] FCAFC 23; (2023) 297 FCR 143 WAEE v Minister for Immigration and Multicultural and Indigenous Affairs [2003] FCAFC 184; (2003) 236 FCR 593 Wills v Chief Executive Officer of the Australian Skills Quality Authority [2022] FCAFC 10; (2022) 289 FCR 175