Commissioner of Taxation v Citylink Melbourne Limited

Income tax – Allowable deductions - Respondent entered into contracts with the State of Victoria to design, construct, operate and maintain a major system of roads - The State conceded to the respondent rights to do all that was necessary to complete those tasks, with a view to transferring the infrastructure and all associated rights back to the State at the expiry of the concession period - Respondent paid concession fees as consideration for those rights - Whether concession fees were allowable deductions - Whether concession fees which accrued semi-annually were outgoings incurred in, and referable to, the relevant years of income, where the fees were "owing" but "not due for payment" - Whether payment was contingent or theoretical - Whether concession fees were on revenue or capital account - Whether concession fees were an outgoing in gaining or producing the taxpayer's assessable income - Whether the concession fees conferred a benefit on the taxpayer of an enduring nature - Whether acquisition of the benefit essential to the taxpayer's business - Whether concession fees were the purchase price paid for the road system as a capital asset - Whether concession fees were akin to a share of profits with the State or a dividend payable to a joint venturer - Whether payment of concession fees analogous to the payment of rent.

Words and phrases – "incurred", "referable".

Income Tax Assessment Act 1936 (Cth) – s 51(1).

Income Tax Assessment Act 1997 (Cth) – s 8-1.