Commissioner of Taxation v McDonald's Australia Ltd [1999] FCA 1744

Commissioner of Taxation v McDonald's Australia Ltd [1999] FCA 1744

Neither the collars nor the wraps could be considered raw materials within the meaning of Item 19, as they are not integral parts of the hamburgers. The wraps are used by McDonald's in marketing or delivering take-away foodstuffs, and Item 27 does not apply because of the express statutory exclusion; thus, the packaging materials are not exempt from sales tax under either item.

Jurisdiction
Australia
Judgment Date
17 December 1999
Procedural Posture
Appeal / Final Judgment
Outcome
Commissioner's appeal allowed; cross-appeal dismissed
Legal Topics
['sales Tax' 'exemptions' 'foodstuffs' 'packaging Materials']
['taxation Law'] ['sales Tax' 'exemptions' 'foodstuffs' 'packaging Materials']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Appeal / Final Judgment

Legal Issues

  1. 1 ["Whether packaging materials used by McDonald's in the preparation and sale of hamburgers are exempt from sales tax under Item 19 or Item 27 of Schedule 1 to the Sales Tax (Exemptions and Classifications) Act 1992 (Cth)"]

Ratio Decidendi

Neither the collars nor the wraps could be considered raw materials within the meaning of Item 19, as they are not integral parts of the hamburgers. The wraps are used by McDonald's in marketing or delivering take-away foodstuffs, and Item 27 does not apply because of the express statutory exclusion; thus, the packaging materials are not exempt from sales tax under either item.

Court Disposition

Commissioner's appeal allowed; cross-appeal dismissed

Orders

  • ['Orders made by the primary judge set aside' 'Declaration that the packaging materials referred to in the amended statement of claim are not exempt from sales tax by reason of either Item 19 or Item 27 of Schedule 1 to the Sales Tax (Exemptions and Classifications) Act 1992 as in force as at September and October...