Chevron Australia Holdings Pty Ltd v Commissioner of Taxation [2017] FCAFC 62

Full Court of the Federal Court of Australia
Allsop CJ; Perram & Pagone JJ
Taxation – income tax – appellant was Australian company which challenged Commissioner’s assessments under Div 13 Income Tax Assessment Act 1936 (Cth) and Div 815 Income Tax Assessment Act 1997 (Cth) concerning interest it paid to its United States subsidiary Chevron Texaco Funding Corporation (‘CFC’) under ‘Credit Facility Agreement’ between them – assessments made on basis that interest appellant paid to CFC ‘was greater than it would have been under an arm’s length dealing between independent parties’ – transfer pricing provisions – ‘arm’s length consideration’ – ‘property’ – ‘consideration’ – ‘might reasonably be expected to have been given or agreed to be given’ – Div 13’s ‘fiscal and commercial context’ – whether assessment excessive – whether erroneous identification of conditions operating in commercial of financial relations between appellant and CFC – whether erroneous exclusion of ‘common ownership’ as condition – Income Tax (Transitional Provisions) Act 1997 (Cth) – International Tax Agreements Act 1953 (Cth) – Taxation Administration Act 1953 (Cth) – held: appeal dismissed.
Chevron