Tasty Chicks Pty Limited & Ors v Chief Commissioner of State Revenue: Supreme Court has jurisdiction to de-group

The High Court has allowed the appeal in Tasty Chicks Pty Limited & Ors v Chief Commissioner of State Revenue [2011] HCA 41, holding that it is not necessary to demonstrate error on the part of the Commissioner of Taxation for the Supreme Court to re-exercise the Commissioner's powers.

Tasty Chicks had appealed the Commissioner's decision to not "de-group" business entities which may be "grouped" together by the Commissioner under the Taxation Administration Act 1996 (NSW) where appropriate so as to counter tax avoidance.

Contrary to the Court of Appeal's decision, the High Court found that it is not necessary to demonstrate that the commissioner erred on the facts before him before his decision was substituted by the Supreme Court.   

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