Shell Energy Holdings case
The Commissioner has lodged an application for special leave to appeal to the High Court from the Full Federal Court decision in FCT v Shell Energy Holdings Australia Limited [2022] FCAFC 2 (Allsop CJ, Davies and Thawley JJ). In the Full Federal Court decision, the ATO lost its appeal – with the Full Federal Court upholding the first instance decision that Shell was entitled to an outright deduction under s 40-80 of the ITAA 1997 of the cost of acquiring another oil company’s interests in an offshore exploration project (see related TT article).
Kinghorn case
The taxpayer has lodged an application for special leave to appeal to the High Court from the decision of the NSW Court of Criminal Appeal in R v Kinghorn [2021] NSWCCA 313 (Bathurst CJ, Payne JA, Bell P, Ward CJ in Eq and Bellew J, 21 December 2021) – see related TT article. The Court of Criminal Appeal had held that prosecuting authorities were able to use information obtained in an examination of an individual under s264 of the ITAA 1936.
The original charges (see related TT Article) emerged out of ‘Project Wickenby’ investigations into the affairs of John Kinghorn – the founder of RAMS Home Loans and Allco Finance, and one of the country’s leading philanthropists. As a result, he faces 10 years in jail after being charged with two counts of fraud for avoiding $30 million in tax by concealing his beneficial ownership of Jersey Island-registered companies. The alleged concealing occurred in s264 compelled interviews (see related TT Article).
[Tax Month – March 2022 – Previous Month, 17.3.22] [LTN 50, 16/3/22]