American Express International Inc v Commissioner of State Revenue

(2004) 10 VR 145; [2004] VSCA 193

Victorian Court of Appeal

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Interrogate

Catchwords

1. Taxation
2. › Financial Institutions Duty
3. › Exemption from liability
4. › Credit provider
5. › Whether receipts constituted repayments under credit contract by way of loan
6. › Whether contract deferred obligation of cardholder to pay amount owed
7. › Whether payment made in accordance with instructions of cardholder
8. › Financial Institutions Duty Act 1982 (Vic), ss 3, 5, 18(3)(l)
1. Taxation
2. › Financial Institutions Duty
3. › Continuing credit contract
4. › Whether agreement to satisfy liabilities of cardholder to merchant
5. › Whether agreement to provide credit in respect of payment for goods and services
6. › Financial Institutions Duty Act 1982 (Vic), s 5(b)
1. Contract
2. › Construction
3. › Charge card scheme
4. › Three separate bilateral contracts
5. › Whether contracts to be construed individually or as single tripartite agreement
6. › Underlying contractual scheme as factual matrix

Quick Take

Charge card receipts by a card issuer from cardholders are not repayments under a 'credit contract' by way of 'loan' under the Financial Institutions Duty Act 1982 (Vic), because the card issuer does not advance money to or on behalf of the cardholder and does not defer the cardholder's obligation to pay. Nor are such receipts payments under a 'continuing credit contract', because the cardholder's liability to the merchant is extinguished upon acceptance of the card, and the card issuer does not satisfy any liability of the cardholder to the merchant. The three contracts in a charge card scheme are separate bilateral contracts to be construed individually.