Resource Capital Fund IV L.P. v Commissioner of Taxation [2013] FCA 801

Resource Capital Fund IV L.P. v Commissioner of Taxation [2013] FCA 801

The word 'money' in s 255(1) of the Income Tax Assessment Act 1936 (Cth) is confined to Australian currency and does not include foreign currency. Consequently, notices issued to Talison Lithium Limited under s 255 do not impose obligations to retain or pay any foreign currency or to convert foreign currency into Australian currency for payment to the Commissioner of Taxation.

Parties
First Applicant: Resource Capital Fund IV L.P.; Second Applicant: Resource Capital Fund V L.P.; First Respondent: Commissioner of Taxation; Second Respondent: Talison Lithium Limited (ACN 140 122 078)
Jurisdiction
Australia
Judgment Date
15 August 2013
Procedural Posture
Application for Declaratory Relief / Judgment at First Instance
Outcome
Declarations granted in favour of the applicants; costs awarded against the first respondent.
Legal Topics
Income Tax Assessment, Section 255 Income Tax Assessment Act 1936, Foreign Currency, Non Resident Taxpayers, Statutory Interpretation
Taxation Law Income Tax Assessment Section 255 Income Tax Assessment Act 1936 Foreign Currency Non Resident Taxpayers Statutory Interpretation

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Parties

Resource Capital Fund IV L.P.

First Applicant

Resource Capital Fund V L.P.

Second Applicant

Commissioner of Taxation

First Respondent

Talison Lithium Limited (ACN 140 122 078)

Second Respondent

Procedural Posture

Application for Declaratory Relief / Judgment at First Instance

Legal Issues

  1. 1 Whether 'money' in s 255(1) of the Income Tax Assessment Act 1936 (Cth) includes foreign currency or is confined to Australian currency.
  2. 2 Whether notices issued under s 255 validly impose an obligation on Talison Lithium to retain or pay foreign currency to the Commissioner.

Ratio Decidendi

The word 'money' in s 255(1) of the Income Tax Assessment Act 1936 (Cth) is confined to Australian currency and does not include foreign currency. Consequently, notices issued to Talison Lithium Limited under s 255 do not impose obligations to retain or pay any foreign currency or to convert foreign currency into Australian currency for payment to the Commissioner of Taxation.

Court Disposition

Declarations granted in favour of the applicants; costs awarded against the first respondent.

Orders

  • It is declared that the notices issued under s 255 do not impose any obligation on Talison Lithium Limited to retain or pay to the Commissioner any part of the Canadian currency payable to the applicants, nor to convert any part of that Canadian currency into Australian currency.
  • The first respondent is to pay the applicants' costs.