Tag: Controlled transactions

Controlled transaction are transactions between two enterprises that are associated enterprises with respect to each other.

Australia vs Commonwealth Aluminium Corporation Ltd, August 1980, HIGH COURT OF AUSTRALIA, Case No. HCA 28

Australia vs Commonwealth Aluminium Corporation Ltd, August 1980, HIGH COURT OF AUSTRALIA, Case No. HCA 28

This case is about the tax authorities power to determine a taxable income according to section 136 of the Australian Income Tax Assessment Act 1936 (Cth) which provides: “Where any business carried on in Australia – (a) is controlled principally by non-residents; (b) is carried on by a company a majority of the shares in which is held by or on behalf of non-residents; or (c) is carried on by a company which holds or on behalf of which other persons hold a majority of the shares in a non-resident company – and it appears to the Commissioner that the business produces either no taxable income or less than the amount of taxable income which might be expected to arise from that business, the person carrying on the business in Australia shall, notwithstanding any other provision of this Act, be liable to pay income tax on a taxable income of such amount of the total receipts (whether cash or credit) ... Continue to full case