Court rules in favour of taxpayer’s approach to valuation in CGT case

A Federal Court decision in Shell Energy Holdings Australia Ltd v Commissioner of Taxation [2026] FCA 577, has clarified that market value for CGT purposes must reflect the real-world characteristics of a large shareholding, as highlighted by James Alsop, Steve Plant, Allan Szostak and Alexandra Macolino.

The Federal Court (Jackman J), on 11 May 2026, allowed the taxpayer's appeal in Shell Energy Holdings Australia Limited v Commissioner of Taxation [2026] FCA 577. The case concerned the market value of Shell Australia Limited's (SAL) 34.27 percent shareholding in Woodside Petroleum Limited (WPL) as at 20 January 1997. The market value was required because the shares were originally pre-CGT assets and became post-CGT assets under the former CGT rules on that day. As a result: SAL was take...

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Authors: James Alsop, Steve Plant,

Published Date: 14 May 2026