Commissioner of Taxation v Qantas Airways Limited

HIGH COURT OF AUSTRALIAGUMMOW, HAYNE, HEYDON, KIEFEL AND BELL JJCOMMISSIONER OF TAXATION  APPELLANTANDQANTAS AIRWAYS LIMITED  RESPONDENTCommissioner of Taxation v Qantas Airways Limited[2012] HCA 412 October 2012S47/2012ORDER1.Appeal allowed with costs.2.Set aside the orders of the Full Court of the Federal Court made on 1 September 2011 and in place thereof order that the appeal to the Full Court be dismissed with costs.On appeal from the Federal Court of AustraliaRepresentationA H Slater QC with J O Hmelnitsky and C A Burnett for the appellant (instructed by Australian Government Solicitor)R C Cordara SC with C M Sievers for the respondent (instructed by PricewaterhouseCoopers)Notice:  This copy of the Court's Reasons for Judgment is subject to formal revision prior to publication in the Commonwealth Law Reports.CATCHWORDS Commissioner of Taxation v Qantas Airways LimitedGoods and Services Tax – Taxable supply – Supply – Consideration – Overbooking – Attribution of tax period – Airfares that were non-refundable or refundable but unclaimed – Customer cancels or fails to take purchased flight –Promise by airline to use best endeavours to carry passengers and baggage – Whether a taxable supply under A New Tax System (Goods and Services Tax) Act 1999 (Cth), s 9-5 – Whether airline liable to remit to Commissioner GST on non-refundable or unclaimed refundable fares.Words and phrases – "a supply for consideration", "consideration", "taxable supply". A New Tax System (Goods and Services Tax) Act 1999 (Cth), ss 7-1, 9-5, 9-10, 9‑15, 29-5(1).GUMMOW, HAYNE, KIEFEL AND BELL JJ.IntroductionThe respondent ("Qantas") and its subsidiaries, including Jetstar Airways Pty...