Commissioner of Taxation v Resource Capital Fund IV LP [2013] FCAFC 118

Commissioner of Taxation v Resource Capital Fund IV LP [2013] FCAFC 118

Section 255 of the Income Tax Assessment Act 1936 (Cth) operates to require retention out of money, including debts denominated in foreign currency, sufficient to pay the tax due by a non-resident; the controller's personal liability is limited to the amount retained or should have been retained, and 'money' is not confined to Australian dollars.

Jurisdiction
Australia
Judgment Date
22 October 2013
Procedural Posture
Appeal / Final Judgment
Outcome
appeal allowed
Legal Topics
['income Tax' 'construction and Operation of S 255 Income Tax Assessment Act 1936' "scope of 'money' Including Foreign Currency" "personal Liability for Tax of Controller of Non Resident's Money"]
['taxation Law'] ['income Tax' 'construction and Operation of S 255 Income Tax Assessment Act 1936' "scope of 'money' Including Foreign Currency" "personal Liability for Tax of Controller of Non Resident's Money"]

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Procedural Posture

Appeal / Final Judgment

Legal Issues

  1. 1 ["Whether 'money' in s 255 of the Income Tax Assessment Act 1936 (Cth) includes foreign currency or is confined to Australian currency" "Scope of controller's personal liability for tax payable by non-resident" 'Operation and purpose of s 255 in context of debts denominated in foreign currency']

Ratio Decidendi

Section 255 of the Income Tax Assessment Act 1936 (Cth) operates to require retention out of money, including debts denominated in foreign currency, sufficient to pay the tax due by a non-resident; the controller's personal liability is limited to the amount retained or should have been retained, and 'money' is not confined to Australian dollars.

Court Disposition

appeal allowed

Orders

  • ['The appeal be allowed.' "The declarations and order made by the Court on 15 August 2013 be set aside; in lieu thereof, the application be dismissed; the Applicants pay the First Respondent's costs." "The First and Second Respondents pay the Appellant's costs of the appeal."]