FCT v Esso Australia [2024] FCAFC 151
The meaning of phrases like ‘in relation to’ depends on context. The issue in this case was whether fees paid to Esso under contract were ‘assessable tolling receipts’ for being ‘consideration receivable … in relation to the processing of … internal petroleum’14.
Context is determined by the text, purpose and history, along with the facts of the case15. It was noted that 2 things may be related even if one of them relates to other things as well, and that ‘consideration’ in this context is what ‘moves’ a transaction. It was held (at [97]) there was a ‘substantial, relevant, direct and close’ connection between the fees and processing. Appeal allowed.
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Footnotes:
14 s 24A of the Petroleum Resource Rent Tax Assessment Act 1987 (Cth).
15 Travelex [2010] HCA 33 [25], DMA18 [2020] HCA 43 [43] cited.