Ausnet Transmission Group Pty Ltd v. Commissioner of Taxation of the Commonwealth of Australia

Lower Court Judgment

7/04/2014 Federal Court of Australia (Edmonds J, McKerracher J, Davies)

[2014] FCAFC 36

Catchwords

Taxation – Income Tax – Income Tax Assessment Act 1997 (Cth) (‘ITAA’) – Appellant paid three imposts to State of Victoria under s 163AA(1) of Electricity Industry Act 1993 (Vic) on purchase of transmission licence – Whether three imposts deductible pursuant to s 8-1 of ITAA – Whether observations of Fullagar J in Colonial Mutual Life Assurance Society Ltd v Federal Commissioner of Taxation  was qualified by Court’s decision in Cliffs International Inc v FCT – Whether practical and business advantage secured by payment of compulsory exaction to State can be capital in nature.

Short Particulars