29 Apr 08 High Court hears appeal in FuturisOn 27-28 March 2008, the High Court (Gummow, Kirby, Hayne, Heydon and Crennan JJ) heard the Commissioner's appeal in FCT v Futuris Corporation Limited. In that case, the Full Federal Court (Heerey, Stone and Edmonds JJ) upheld the taxpayer's appeal from the decision of Finn J, who had dismissed an application made by the taxpayer (Futuris) under s 39B of the Judiciary Act 1903 (Cth) that amended assessments issued by the Commissioner in pursuance of the operation of Part IVA was invalid and ought to be quashed.
As a result of a Part IVA assessment, an amount that had previously been included in the taxpayer's assessable income was "double counted". The Commissioner was aware of the "double counting" when he issued the assessment. However, assuming that the Part IVA assessment was ultimately upheld in objection and appeal proceedings, the Commissioner took the view that the "double counting" could be corrected by a compensating adjustment under s 177F(3) ITAA 1936.
For a copy of the transcripts of the High Court hearings, go here and here