18 Apr 1111 Special leave to appeal in Part IVA case refused - British American Tobacco
On 8 April 2011, the High Court (French CJ, Gummow and Crennan JJ) refused the taxpayer special leave to appeal from the decision of the Full Federal Court in British American Tobacco Australia Services Limited v FCT  FCAFC 130 (10 November 2010).
The Full Federal Court dismissed the taxpayer's appeal from the decision of Emmett J in British American Tobacco Australia Services Limited v FCT  FCA 1550, in which his Honour upheld an assessment made by the Commissioner pursuant to a determination made under Part IVA ITAA 1936, the effect of which was to include a capital gain of $118,128,953 in the taxpayer company's assessable income.
The special leave questions related to the approach taken by the Full Federal Court to the application of s 177D(b) of ITAA 1936 in determining whether it could be concluded that a person who entered into the scheme identified by the Commissioner did so for the purpose of enabling the applicant to obtain a tax benefit in connection with the scheme. French CJ, on behalf of the High Court, said: "In our opinion, the approach taken by the Full Court applied an uncontroversial interpretation of the legislation to the facts."
For a copy of the transcript of the High Court hearing, British American Tobacco Australia Services Limited v FCT  HCATrans 94 (8 April 2011), go here