Published on 01 Feb 00
by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
The Federal Court handed down its decision in Broken Hill Proprietary Company Ltd v FCT on 23 November 1999. The matters arose out of the acquisition by BHP of shares for which BHP claimed an interest payment under the share purchase agreement in excess of $198m as a deduction, and which was disallowed by the Commissioner. The Court addressed the issue by determining the character of the payment termed "interest", and held that the $198m payment by BHP was in the nature of interest and therefore deductable under s 51(1).