4 Dec 2012
AVIATION FUEL SUPPLY CO v. COMMISSIONER OF INLAND REVENUE
- Citation
- AVIATION FUEL SUPPLY CO v. COMMISSIONER OF INLAND REVENUE
- Court
- Court of Appeal
- Case number
- CACV150/2011
The Court held the Sum (US$449,043,000) payable under the Accelerated Facility Cost Payment was not chargeable to profits tax: it did not arise from AFSC's business receipts under s14, was capital in nature (payment to acquire/terminate AFSC's business interest), and was not brought within s15(1)(m)/15A because there was no transfer of AFSC's right to receive income to the Authority (the Authority's right pre-existed and the transaction amounted to extinguishment/novation or, if a transfer, fell within the s15A(3) exception); further, succession occurred to the Authority so no balancing charg…