The High Court has granted the taxpayers special leave to appeal against the Full Federal Court decision in Bywater Investments Ltd & Ors v FCT [2015] FCAFC 176. The Full Federal Court had dismissed the taxpayers’ appeals from 2 Federal Court decisions that had held the taxpayers were residents of Australia for tax purposes and were liable to pay income tax in Australia on profits made from the sale of shares.
[LTN 85, 55/16]
Extract from FFC decision
| Citation: | Bywater Investments Limited v Commissioner of Taxation [2015] FCAFC 176 |
| Appeal from: | Hua Wang Bank Berhad v Commissioner of Taxation [2014] FCA 1392 Hua Wang Bank Berhad v Commissioner of Taxation (No 19) [2015] FCA 454 |
| Parties: | BYWATER INVESTMENTS LIMITED, CHEMICAL TRUSTEE LIMITED and DERRIN BROTHERS PROPERTIES LIMITED v COMMISSIONER OF TAXATION
HUA WANG BANK BERHAD v COMMISSIONER OF TAXATION |
| File numbers: | NSD 71 of 2015 NSD 76 of 2015 |
| Judges: | ROBERTSON, PAGONE AND DAVIES JJ |
| Date of judgment: | 11 December 2015 |
| Catchwords: | INCOME TAX – whether companies residents of Australia – place of central management and control – relevant principles
INCOME TAX – profits from sale of shares – whether on revenue or capital account – where shares agreed to be trading stock INCOME TAX – trading stock – construction of s70-40(2) of the Income Tax Assessment Act 1997 (Cth) – whether items taken into account for purposes of Division 70 – relevant principles INCOME TAX – shares – whether proved to be held beneficially |