Industry Research & Development Board v Coal & Allied Operations Pty Ltd [2000] FCA 979

Industry Research & Development Board v Coal & Allied Operations Pty Ltd [2000] FCA 979

The statutory criteria for 'research and development activities' under s 73B(1) of the Income Tax Assessment Act 1936 (Cth) require particular activities, not merely projects as a whole, to be systematic, investigative or experimental, involving innovation or technical risk, and carried on for the statutory purposes. The Court held the AAT correctly applied these criteria to the contested activities. The Construction activity was held to be a core research and development activity involving innovation and technical risk, and Dewatering and Blasting/Mining were supporting activities. The appeal was dismissed because no error of law was demonstrated in the AAT’s application of the law to...

Jurisdiction
Australia
Judgment Date
24 July 2000
Procedural Posture
Appeal From Administrative Appeals Tribunal Decision / Judgment on Appeal
Outcome
Application dismissed
Legal Topics
['research and Development Tax Concessions' "interpretation of 'research and Development Activities'" "meaning of 'innovation' and 'technical Risk'"]
['tax Law' 'administrative Law'] ['research and Development Tax Concessions' "interpretation of 'research and Development Activities'" "meaning of 'innovation' and 'technical Risk'"]

Case Brief

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Procedural Posture

Appeal From Administrative Appeals Tribunal Decision / Judgment on Appeal

Legal Issues

  1. 1 ["Whether certain activities constituted 'research and development activities' under s 73B(1) of the Income Tax Assessment Act 1936 (Cth)" 'Proper application of statutory definitions to specific activities as opposed to entire projects' "Meaning of 'innovation' and 'technical risk' within the statutory framework"]

Ratio Decidendi

The statutory criteria for 'research and development activities' under s 73B(1) of the Income Tax Assessment Act 1936 (Cth) require particular activities, not merely projects as a whole, to be systematic, investigative or experimental, involving innovation or technical risk, and carried on for the statutory purposes. The Court held the AAT correctly applied these criteria to the contested activities. The Construction activity was held to be a core research and development activity involving innovation and technical risk, and Dewatering and Blasting/Mining were supporting activities. The appeal was dismissed because no error of law was demonstrated in the AAT’s application of the law to...

Court Disposition

Application dismissed

Orders

  • ['The application be dismissed.' "The applicant pay the respondent's costs."]