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Origin: An electric shock
Published on 01 Jun 20 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
The Federal Court recently decided the case of Origin Energy Ltd v FCT (No. 2), with Thawley J handing down his judgment on 30 March 2020. The case concerned payments for the supply of electricity over a period of many years. The Commissioner was successful in arguing the payments were non-deductible on the basis they were capital in nature. The decision is consistent with recent tax cases that apply a pragmatic and purposive view of the facts rather than a literal interpretation of the legal agreements. Substance over form. The case also contains some helpful insights on the potential breadth (or lack of breadth) of s 40-880 of the Income Tax Assessment Act 1997, which allows deductions for certain business capital expenditure.
Author profile
Enzo Coia CTA
Enzo Coia is a Tax Partner at KPMG with more than 25 year's experience advising on Australian tax matters associated with mergers and acquisitions. Enzo has significant expertise in advising clients in energy and resources. Enzo has advised on many significant transactions in power and utilities including renewable energy, mining and the oil and gas sectors. Enzo is a frequent presenter to industry bodies and has published many articles on mergers and acquisitions. - Current at 12 November 2025
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