The High Court on Fri 10.2.2012, decided several special leave applications in tax cases:
- The High Court refused the Commissioner special leave to appeal against the Full Federal Court decision in RCI Pty Ltd v FCT [2011] FCAFC 104. The Full Federal Court decision unanimously held that Pt IVA did not apply to a scheme, which reduced a capital gain made by an Australian company on the transfer of its shares in a related US-company.
- The High Court granted the Commissioner special leave to appeal against the Full Federal Court decision in Qantas Airways Ltd v FCT [2011] FCAFC 113. The Full Federal Court had unanimously allowed an appeal by Qantas Airways Ltd against an earlier AAT decision that the airline makes a supply for GST purposes when a passenger cancels his or her flight booking or doesn’t show for the flight and no refund was either available or claimed.
- The High Court refused the taxpayer special leave to appeal against the Full Federal Court decision in Russell v FCT (2011) 79 ATR 315. The Full Federal Court decision unanimously dismissed the taxpayer’s appeal and confirmed there was no bar to the PSI rules applying to attribute personal services income to an Australian resident from a company that was a non-resident in New Zealand.
- The High Court refused the taxpayers special leave to appeal against the Full Federal Court decision in Allen (Trustee), in the matter of Allen’s Asphalt Staff Superannuation Fund v FCT [2011] FCAFC 118. The Full Federal Court decision upheld the earlier finding of Collier J that a $2.5m capital gain distributed from a fixed trust to a superannuation fund was “special income” for the purposes of former s 273(7) of the ITAA 1936, and therefore taxable at the maximum personal tax rate.
[LTN 27, 10/2]