Victoria Power Networks Pty Ltd v Commissioner of Taxation [2020] FCAFC 169

TAXATION – assessable income – income according to ordinary concepts – non-cash business benefits – where electricity distributors were required to connect customers to the electricity network upon request – where the connection works were carried out either by the distributor or by the customer – where, in relation to the first situation, if the connection was “uneconomic”, the customer paid a cash contribution to the distributor – whether the cash contribution was income according to ordinary concepts – where, in relation to the second situation, the customer was required to transfer the relevant assets to the distributor and received a rebate from the distributor – where, in relation to that situation, if the connection was “uneconomic”, the rebate was the estimated cost of construction less a customer contribution – whether the customer contribution was income according to ordinary concepts – whether the transferred assets constituted a non-cash business benefit – consideration of the amount to be included in the distributor’s assessable income pursuant to s 21A of the Income Tax Assessment Act 1936 (Cth) – consideration of the arm’s length value of the transferred assets


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