The High Court heard the following special leave applications on Fri 17.8.2012:
- : The Court to appeal against the decision of Millsgranted the taxpayer’s application for special leavethe Full Federal Court in Mills v FCT [2011] FCAFC 158. The Full Federal Court had confirmed that the “imputation benefit” scheme provisions in s 177EA of the ITAA 1936 applied to cancel franking credits that arose to a taxpayer from distributions paid on “debt-like” securities (Perpetual Exchangeable Resaleable Listed Securities V (“PERLS V Securities”)) he had subscribed for in the Commonwealth Bank;
- Consolidated Media: The Court granted the Commissioner’s application for special leave to appeal against the Full Federal Court decision in Consolidated Media Holdings Limited v FCT [2012] FCAFC 36. The Full Federal Court had held that an off-market share buy-back transaction did not generate a capital gain of some $400m to the taxpayer;
- EssoAustralia Resources: The Court refused the taxpayer’s application for special leave to appeal against the Full Federal Court decision in Esso Australia Resources Pty Ltd v FCT [2012] FCAFC 5. The Full Federal Court decision had held that the company was not entitled to a deduction for contract payments made to a subsidiary for the provision of “operations and facilities in connection with a petroleum project” and also that the taxpayer was not entitled to a deduction for a contribution fee paid to a US affiliate for “mutualised research” in connection with the project.
[LTN 159, 17/8]