Keycorp Limited v Commissioner of Taxation [2007] FCA 41

Keycorp Limited v Commissioner of Taxation [2007] FCA 41

Division 170 of the Income Tax Assessment Act 1997 does not authorise the transfer of a tax loss referable to only part of an income year; only the whole or a fractional part (quantum) of a tax loss for the entire income year may be transferred. Express statutory language is required to enable the transfer of a loss referable to part of a year, which is not found in s 170-10(2).

Parties
First Applicant: Keycorp Limited; Second Applicant: Telstra Payment Solutions Limited; Respondent: Commissioner of Taxation
Jurisdiction
Australia
Judgment Date
07 February 2007
Procedural Posture
Appeal Under S 14 ZZ of the Taxation Administration Act 1953 (cth) / Judgment on Appeal From a Decision to Disallow Objection to a Private Ruling
Outcome
Appeal dismissed with costs.
Legal Topics
Income Tax, Company Losses, Tax Loss Transfer, Interpretation of 'part of a Loss', Taxation Administration Act Procedures
Taxation Law Income Tax Company Losses Tax Loss Transfer Interpretation of 'part of a Loss' Taxation Administration Act Procedures

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Parties

Keycorp Limited

First Applicant

Telstra Payment Solutions Limited

Second Applicant

Commissioner of Taxation

Respondent

Procedural Posture

Appeal Under S 14 ZZ of the Taxation Administration Act 1953 (cth) / Judgment on Appeal From a Decision to Disallow Objection to a Private Ruling

Legal Issues

  1. 1 Whether 'part of a tax loss' in s 170-10(2) of the Income Tax Assessment Act 1997 allows transfer of a loss referable to part of an income year
  2. 2 Whether the income company was prevented by the legislation from deducting the transferred amount in the deduction year

Ratio Decidendi

Division 170 of the Income Tax Assessment Act 1997 does not authorise the transfer of a tax loss referable to only part of an income year; only the whole or a fractional part (quantum) of a tax loss for the entire income year may be transferred. Express statutory language is required to enable the transfer of a loss referable to part of a year, which is not found in s 170-10(2).

Court Disposition

Appeal dismissed with costs.

Orders

  • The application by way of appeal under s 14ZZ of the Taxation Administration Act 1953 (Cth) be dismissed.
  • The applicants pay the respondent's costs.