BP Australia Ltd. v Federal Commissioner of Taxation
(1964) 110 CLR 38737 ALJR 365
(Judgment by: Owen J)
Between: BP Australia Ltd
And: Federal Commissioner of Taxation
Judges:
Taylor J
Dixon CJ
McTiernan J
Kitto J
Windeyer J
Owen J
Subject References:
Income Tax
Judgment date: 25 February 1964
Melbourne
Judgment by:
Owen J
This appeal from Taylor J. raises questions similar to those which arose in the case of the Vacuum Oil Company Pty. Ltd. The amount involved is 271,240 pounds, which the appellant claims was an allowable deduction for income tax purposes for the year ended 30th June 1952. The facts are set out in the judgment of Taylor J. and it is unnecessary to repeat them. It is sufficient to say that the amount represents lump sum payments made to service station operators in return for which those operators bound themselves for periods ranging from three to ten years to deal only in brands of petrol approved by the appellant and three other companies with which it was associated in its efforts to secure or retain outlets for its products. In a few isolated cases the tie was not an exclusive one, the operator undertaking that 80 per cent of his petrol requirements would consist of approved brands. I can see no material distinction between this case and that of the Vacuum Oil Company Pty. Ltd. and, for the reasons I have given in that case, I am of opinion that this appeal fails and should be dismissed with costs. (at p418)