The High Court has refused the Commissioner special leave to appeal from the decision of the Full Federal Court in FCT v Macquarie Bank Limited [2013] FCAFC 13. The Full Federal Court had unanimously dismissed the Commissioner’s appeal and held that a member of a consolidated group was not subject to Pt IVA in respect of a capital gain it made from selling shares as there was no “tax benefit” under the scheme. This was mainly because the Commissioner had identified the subsidiary as the taxpayer who had received the “tax benefit” whereas the Court found that under the consolidation regime, only the head company of the group could be liable for tax and therefore only it could obtain a tax benefit.
[LTN 158, 16/8/13]
Transcript
On 16 August 2013, the High Court refused the Commissioner special leave to appeal from the decision of the Full Federal Court in FCT v Macquarie Bank Limited [2013] FCAFC 13. The transcript of the decision is now available – [2013] HCATrans 185. The Full Federal Court had unanimously dismissed the Commissioner’s appeal and held that a member of a consolidated group was not subject to Pt IVA in respect of a capital gain it made from selling shares as there was no “tax benefit” under the scheme. This was mainly because the Commissioner had identified the subsidiary as the taxpayer who had received the “tax benefit” whereas the Court found that under the consolidation regime, only the head company of the group could be liable for tax and therefore only it could obtain a tax benefit.
[LTN 161, 21/8/13]