Tabcorp Maxgaming Holdings Limited v Commissioner of Taxation

INTRODUCTION 1 This appeal under Part IVC of the Taxation Administration Act 1953 (Cth) concerns the deductibility for income tax purposes of an alleged loss made by the applicant (Tatts) from a financial arrangement within the meaning of Div 230 of the Income Tax Assessment Act 1997 (Cth) (ITAA 1997), which concerns the taxation of financial arrangements (TOFA). Unless otherwise stated, all references to legislation are references to the ITAA 1997. 2 Tatts' case is that it incurred a loss of $1,491,309,000 from a financial arrangement, deductible under s 230‑15(2) when the asserted financial arrangement ceased in the financial year ended 30 June 2013 - see: ss 230‑435(1) and 230‑445(1). 3 As will be further explained below, Tatts has already been allowed $1,193,952,000 of that amount in deductions under s 8‑1 in the financial years ended 30 June 1999 to 30 June 2013. Time limits prevent any review of the assessments under which those deductions were claimed and allowed. The fact that Tatts would obtain a double deduction in the amount of $1,193,952,000 if its arguments are correct is said to be relevant to interlocutory issues, heard at the final hearing, concerning whether Tatts should be granted leave to amend to rely on grounds not relied upon in the objection to the assessment for the 2013 year. 4 In order to understand the issues, it is necessary to understand the factual background. I should observe that I have made findings based on the evidence adduced in the proceedings, but included references to High Court (and other) decisions for background and because the parties made extensive reference to those decisions - see: s 91 of the Evidence Act 1995 (Cth).