CBA Investments Limited v Northern Star Limited [2002] NSWCA 94

CBA Investments Limited v Northern Star Limited [2002] NSWCA 94

The appellant was required by the lease and by commercial expectations to put the alternatives (income vs capital treatment) to the Commissioner of Taxation before the taxation indemnity could be triggered; mere self-assessment did not satisfy the requirements of clause 6.1 and 6.3, and therefore the trial judge was not in error in denying the appellant's claim.

Parties
Appellant: CBA Investments Limited; First Respondent: Northern Star Limited; Second Respondent: Richmond-Tweed TV Pty Limited; Third Respondent: Richmond River Broadcasters Pty Limited
Jurisdiction
Australia
Judgment Date
08 April 2002
Procedural Posture
Appeal / Judgment
Outcome
Appeal dismissed with costs
Legal Topics
Lease Construction, Taxation Indemnity, Self Assessment, Income Vs Capital Receipt
Commercial Law Taxation Law Contract Law Lease Construction Taxation Indemnity Self Assessment Income Vs Capital Receipt

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Parties

CBA Investments Limited

Appellant

Northern Star Limited

First Respondent

Richmond-Tweed TV Pty Limited

Second Respondent

Richmond River Broadcasters Pty Limited

Third Respondent

Procedural Posture

Appeal / Judgment

Legal Issues

  1. 1 Whether the appellant was entitled to a taxation indemnity under the lease when the termination payment was treated as income by the Commissioner of Taxation
  2. 2 Proper construction of lease clause 6.1 and 6.3 concerning indemnity and procedural obligations of the parties

Ratio Decidendi

The appellant was required by the lease and by commercial expectations to put the alternatives (income vs capital treatment) to the Commissioner of Taxation before the taxation indemnity could be triggered; mere self-assessment did not satisfy the requirements of clause 6.1 and 6.3, and therefore the trial judge was not in error in denying the appellant's claim.

Court Disposition

Appeal dismissed with costs

Orders

  • Appeal dismissed with costs