The taxpayer has applied for special leave to appeal to the High Court against the decision of the Full Federal Court in Pratt Holdings Proprietary Limited v FCT [2013] FCAFC 82. In that case, the Full Court unanimously dismissed an appeal by the taxpayer and confirmed that it was not entitled to deduct a loss – including part of a balancing adjustment deduction for “allowable capital expenditure” claimed by the joint venture company pursuant to the relevant provisions in Div 330 of the ITAA 1997 – which was transferred to it from a related joint venture company in respect of a project to explore certain mining exploration tenements.
[LTN 183, 20/9/13]