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Case Study Of News Australia Holdings Pty Ltd V FCA

Satisfactory Essays
News Australia Holdings Pty Ltd v FCA
Case details:
• Between- NEWS AUSTRALIA HOLDINGS PTY LTD (APPLICANT) and COMMISSIONER OF TAXATION (RESPONDENT)
• Judge- PAGONE J
• Date of order- 8 JUNE 2017
• Conclusion- The application be dismissed.
Case background & Reasoning behind Judgement:
• The appeal is whether SRC Holdings Limited derived interest income due to it from News Limited during the year of income ended 30 June 2010. This is in the context of controlled foreign corporation provisions- Income Tax Assessment Act 1936.
• The applicant, News Australia Holdings Pty Lt, was the provisional head company of a multiple entry consolidated group which included News Limited and SRC; Thus, the interest income will be assessable to the applicant in this proceeding.
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News Australia Holdings Pty Ltd) was to be evaluated on SRC’s interest income which accrued in 2010.
• Interest income of US$66,023,141 (~A$75,028,696) accrued to SRC as a debt in 2010 of income under the terms of a loan agreement on 28th April 2006 between News Limited and SRC (i.e. the News loan agreement); This interest was not paid until 2011 year of income on 2nd July 2010, and on 8th July 2010; SRC compensated Australian withholding tax of A$7,502,870 in respect of this
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