High Court of Australia

Mills v Commissioner of Taxation [2012] HCA 51

247 CLR 108; 87 ALJR 53; 293 ALR 43

14 Nov 2012

Case Number: S225/2012


French CJ, Hayne, Kiefel, Bell, Gageler JJ


Taxation – Income tax – Equity interests – Imputation system – Schemes to reduce income tax – Power of Commissioner under Income Tax Assessment Act 1936 (Cth), s 177EA to make determination that no imputation benefit to arise – Whether "having regard to the relevant circumstances" scheme entered into or carried out for purpose of enabling taxpayer to obtain imputation benefit – Whether purpose an "incidental purpose" – Relevance of distribution being traceable to source not taxed in Australia – Relevance of scheme resulting in reduced cost of capital to whether scheme results in "change" in financial position.

Words and phrases – "change in financial position", "frankable distribution", "incidental purpose", "purpose", "relevant circumstances", "untaxed or unrealised profits".

Income Tax Assessment Act 1936 (Cth) – ss 177D, 177EA.

Income Tax Assessment Act 1997 (Cth) – Pt 3-6, Div 974.

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