Mining group BHP Billiton had not in it’s Australian CfC income included income from associated British group companies from sales of Australian goods through Singapore.
The tax authorities held that the British companies in BHP’s dual-listed company structure fell within a definition of “associate”, and part of the income should therfore be taxed in Australia under local CfC legislation.
In December 2017 BHP won the case in an administrative court but this decision was appealed to the Federal Court by the authorities.
The Federal Court found in favor of the tax authority. The court found that both BHP’s Australian and British arms are associates, and therefore subject to tax in Australia under Australien CfC rules.
BHP has now asked the High Court for leave to appeal.Australia v BHP jan 2019 FC AFC 4