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 railroad tie project. The taxpayer was required to pay the surrender fees to the Victorian Government in return for the right to build and operate toll roads. The appellation Deed provided that the taxpayer with the option of paying the conceding fees by the plump along of concession notes with the face value of amount payable. The assignment was to be continued, but subject to the Concession Deed until the closedown of the Concession Period. The taxpayer claimed a deduction for the face value of the notes. The Commissioner submitted that the expenses were not allowable and that they were of a capital disposition. However, the taxpayer argued that the concessions were of a revenue nature and allowable under the general deduction provision. The issues included whether the concession fees were a loss or outgoing incurred in - and decently 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 give up of a monopoly or other anti-competitive right; or a sacramental manduction of profits or payments akin to a dividend, or other than precluded from deduction as losses or outgoings of capital or of a capital nature. At starting line in stance in the federal official Court, the pr! imary valuate concluded that the concession fees were not deductible. His watch over was of the intellection that the Concession Fees were, in the relevant statutory sense, incurred by Transurban in each year of income. Further... If you want to get a full(a) essay, order it on our website: BestEssayCheap.com

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