Commissioner of Taxation v Sharpcan Pty Ltd [2018] FCAFC 163

TAXATION – appeal from a decision of the Administrative Appeals Tribunal – were taxpayer incurred expenditure to acquire gaming machine entitlements under Gambling Regulation Act 2003 (Vic) – whether Tribunal erred in finding that expenditure was on revenue account and deductible under s 8-1 of the Income Tax Assessment Act 1997 (Cth) – whether expenditure was “outgoing of capital, or of a capital nature” – whether expenditure was incurred to provide a necessary component of the profit-making structure of the taxpayer’s business TAXATION – whether expenditure on gaming machine entitlements was “capital expenditure” deductible over 5 years in accordance with s 40-880(2) of the Income Tax Assessment Act 1997 (Cth) – whether expenditure was “incurred to preserve (but not enhance) the value of goodwill” within the meaning of s 40-880(6)

Full decision here