Sharpcan and Australia's Peculiar Treatment of Capital Expenses

In this article, the authors discuss a recent Australian High Court case and argue that Australia's legislative framework dictating the distinction between capital and current expenses is inadequate and poses unnecessary judicial roadblocks.The High Court of Australia's October 16 decision in Commissioner of Taxation v. Sharpcan Pty. Ltd., [2019] HCA 36, starkly illustrates the bizarre doctrines and inadequate legislative framework that govern the distinction between capital and current expenses in Australian tax law