*Mills v FCT – taxpayer seeks leave to appeal to the High Court against the decision that the CBA’s Pearls V Securities constituted franking benefit avoidance [C9]

The taxpayer has lodged an application for special leave to appeal to the High Court against the decision of the Full Federal Court in Mills v FCT [2011] FCAFC 158. The Full Federal Court had (by majority) 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.

[LTN 6, 11/1]