The ATO on Fri 18.1.2013, released a Decision Impact Statement on the following case:
- FCT v Visy Industries USA Pty Ltd [2012] FCAFC 106 – In this case, the Full Federal Court dismissed the Commissioner’s appeal and confirmed that the taxpayer was entitled to a deduction under s 8-1 of the ITAA 1997 for an “indemnity fee” paid as a part of an internal hedge under a forward exchange contract to deliver US dollars to a related finance company. In the Decision Impact Statement, the ATO broadly said it was open to the Court to conclude that the indemnity fee should carry the same revenue consequences as the forward exchange contract. Therefore, it said it respectfully accepts that the various statements of legal principle in the decision are correct.
[LTN 12, 18/1/13]