Caltex Ltd v Federal Commissioner of Taxation

106 CLR 205

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Between: Caltex Ltd
And: Federal Commissioner of Taxation

Court:

Judges: Dixon CJ
Fullagar J
Kitto J
Taylor J
Menzies J

Subject References:
Taxation and revenue
Income tax
Debt payable in foreign currency
Exchange loss
Allowable deduction

Legislative References:
Income Tax Assessment Act 1936 (Cth) - s 51(1); s 80; s 136

Hearing date: 7 September 1959; 8 September 1959; 9 September 1959; 10 September 1959; 1960 September 1959; 5 April 1959
Judgment date: 5 April 1960

SYDNEY

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ORDER

Order that the questions in the special case as amended at the hearing, viz. the following questions:

1.

Upon the facts stated did the appellant as claimed in par. 48 hereof incur in the income year 1936 a loss or outgoing in the nature of an exchange loss, in relation to the discharge of its indebtedness to the old supplier as set out in pars. 44 and 45 hereof, which was an allowable deduction under s. 51 of the Income Tax Assessment Act 1936?

2.

If so whether the appellant was, in the circumstances of the case, entitled to a deduction, pursuant to s. 80, in the income year ended 31st December 1939, of any part of the loss disclosed in the year of income referred to in question 1. after taking the so called exchange loss into account be answered as follows:

1.

No;

2.

Unnecessary to answer.

 

The appellant Caltex Ltd to pay the costs of the case stated.