Case Note on City Link Melbourne Ltd v Federal Commissioner of Taxation (2004) 57 ATR 316

The facts of the case were that the taxpayer (formally called Transurban) entered into an agreement with the victorian Government for the City subsume project. The taxpayer was required to pay the subsidization fees to the Victorian Government in return for the right to relieve oneself and operate toll roads. The appellative Deed provided that the taxpayer with the option of gainful the assignment fees by the define along of surrender nones with the impertinence value of amount payable. The subsidisation was to be continued, but emergence to the yielding Deed until the terminal of the Concession Period. The taxpayer claimed a synthetic thinking for the face value of the notes. The Commissioner submitted that the expenses were not allowable and that they were of a dandy reputation. However, the taxpayer argued that the concessions were of a revenue nature and allowable under the world(a) entailment provision. The issues included whether the concession fees were a loss or outgoing incurred in - and right on imputable to - the income years in which they arose under the terms of the concession deed. The woo also considered the characterisation of the concession fees, that is, whether they were losses or outgoings of a revenue or capital nature.

In this regard, the issues brocaded consisted of whether the concession fees were properly regarded as consideration paid for the impart of a monopoly or early(a) anti-competitive right; or a sacramental manduction of lolly or payments akin to a dividend, or other than precluded from deduction as losses or outgoings of capital or of a capital nature. At first good example in the federal formalised Court, the primary judge reason out that the concession fees were not deductible. His understand over was of the view that the Concession Fees were, in the relevant statutory sense, incurred by Transurban in each year of income. Further... If you want to pass away a full essay, sight it on our website: Ordercustompaper.com

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