Deputy Commissioner of Taxation v Dexcam Australia Pty Ltd (in liq) (ACN 007 056 877) [2003] FCAFC 148

FEDERAL COURT OF AUSTRALIA

Deputy Commissioner of Taxation v Dexcam Australia Pty Ltd (in liq) (ACN 007 056 877) [2003] FCAFC 148 TAXES AND DUTIES – where a corporation has entered a deed of administration - whether the Commissioner of Taxation has power to apply credits and interest accrued pursuant to Prescribed Payments System to debt owing by the corporation prior to entry into a deed of administration - whether the Commissioner enjoys priority in insolvent administrations by virtue of s 221YHG Income Tax Assessment Act 1936 (Cth) – whether s 221YHG Income Tax Assessment Act 1936 (Cth)and s 13(1) Taxation (Interest on Overpayments and Early Payments) Act 1983 (Cth) impliedly repealed or overridden – whether Part VI Income Tax Assessment Act 1936 (Cth) is subject to Chapter 5 of the Corporations Law – interpretation of "an amount payable" in s 221YHG(7) Income Tax Assessment Act 1936 – whether the relations between taxpayer and Commissioner involve any right of set off or cross-claim – whether accounting in the course of that relation can be described as mutual credits, mutual debts or other mutual dealings.

Corporations Act 2001 (Cth) ss 1384, 1400 Corporations Law ss 9, 436A, 439C, 444B, 471B, 471B(a), 471B(b), 474, 478, 553C, 553C(2), 556 Income Tax Assessment Act 1936 (Cth) ss 221, 221A(1), 221F(5), 221F(12), 221F(12)(b)(ii)(A), 221F(12)(b)(ii)(B), 221H, 221P, 221YHG, 221YHG(7), 221YHG(7)(a), 221YHJ, 221YHJ(3) 221YHJ(4), 221YHJ(5), 221YHZD, 221YHZD(3), 221YHZD(4), 221YHZD(5), 221YU, 221YZD, 222ARA Taxation (Interest on Overpayments and Early Payments) Act 1983 (Cth) ss 3(2), 13, 13(1) Bankruptcy Act 1966 (Cth) ss 58, 58(3), 58(3)(a), 82(1) Insolvency (Tax Priorities) Legislation Amendment Act 1993 (Cth) ss 7, 9, 11, 15 Taxation Debts (Abolition of Crown Priority) Act 1980 (Cth) s 5 Crown Debts (Priority) Act 1981 (Cth) ss 3, 4 Taylor v Commissioner of Taxation (1987) 16 FCR 212 applied Federal Commissioner of Taxation v Official Receiver (1956) 95 CLR 300 considered Clyne v Deputy Commissioner of Taxation (1981) 150 CLR 1 considered Commissioner of Taxation v Kavich (1996) 68 FCR 519 considered Gye v McIntyre (1990-91) 171 CLR 609 cited Second Reading Speech in the House of Representatives on 27 May 1993 Explanatory Memorandum to The Insolvency (Tax Priorities) Legislation Amendment Bill 1993 DEPUTY COMMISSIONER OF TAXATION v DEXCAM AUSTRALIA PTY LTD (in liquidation) (ACN 007 056 877), DAVID NEIL LOCKWOOD AND KENNETH STEWART SELLERS (as liquidators) V 460 OF 2002 RYAN, FINN & DOWSETT JJ 30 JUNE 2003 MELBOURNE