American Express Wholesale Currency Services Pty Ltd v. Commissioner of Taxation
American Express International Inc v. Commissioner of Taxation

Lower Court Judgment

17/09/2010 Federal Court of Australia (Dowsett, Kenny, Middleton JJ)

[2010] FCAFC 122

Catchwords

Taxation and duties — Goods and services tax ­— Applicants providers of charge cards and credit cards — Whether payments received by applicants from cardholders (liquidated damages and late payment fees) ("Default Fees") revenue from or consideration for a "financial supply" within meaning of A New Tax System (Goods and Services Tax) Act 1999 (Cth) Div 40 and A New Tax System (Goods and Services Tax) Regulations 1999 (Cth) ("Regulations") — Whether Default Fees revenue from provision, acquisition or disposal of an interest in or under "a debt, credit arrangement or right to credit, including a letter of credit": Item 2 of table to r 40-5.09(3) of Regulations — Whether Default Fees revenue from supply of or interest in or under "a payment system": Item 4 of the table to r 40-5.12 of Regulations.

Taxation and duties — Goods and services tax — Whether right to present a card as payment for goods and services and incur a corresponding obligation to pay at a later date an "interest" within meaning of r 40-5.09 of Regulations — Whether Default Fees paid for that "interest".

Procedure — Appeals — Amendment — Respondent granted leave to amend Notices of Appeal — Whether Full Court of Federal Court of Australia erred in granting leave.

Short Particulars