Commissioner of Taxation v Bruton Holdings Pty Limited (in liq) [2008] FCAFC 184

FEDERAL COURT OF AUSTRALIA

Commissioner of Taxation v Bruton Holdings Pty Limited (in liq) [2008] FCAFC 184

TAXATION - termination of a company's position as a trustee upon liquidation – trust funds held by a third party at the time of liquidation – notice for that third party to pay funds directly to the Commissioner of Taxation in payment of the liquidated company's tax debt pursuant to s 260-5 of Schedule 1 to the Taxation Administration Act 1953 (Cth)

Corporations Act 2001 (Cth) ss 468, 500, 501 513C, 569 Taxation Administration Act 1953 (Cth) Schedule 1 Income Tax Assessment Act 1936 (Cth) ss 118, 254(1) Income Tax Assessment Act 1997 (Cth) s 9-1 Sales Tax Assessment Act (No 1) 1930 (Cth) s 38 Legal Profession Act 2004 (NSW) s 255 Clyne v Deputy Commissioner of Taxation (1981) 150 CLR 1 discussed Commissioner of Taxation v Donnelly (1989) 25 FCR 432 discussed Norgard v Deputy Commissioner of Taxation (1986) 18 ATR 270 discussed Tricontinental Corporation Ltd v Commissioner of Taxation [1988] 1 QdR 474 discussed Elric Pty Ltd v Taylor (1988) 19 ATR 1551 considered Octavo Investments Pty Ltd v Knight (1979) 144 CLR 360 discussed Chief Commissioner of Stamp Duties for New South Wales v Buckle (1998) 192 CLR 226 cited Re Byrne Australia Pty Ltd [1981] 1 NSWLR 394 considered Re Byrne Australia Pty Ltd (No 2) [1981] 2 NSWLR 364 cited Re Suco Gold Pty Ltd (1983) 33 SASR 99 discussed Re Enhill Pty Ltd [1983] 1 VR 561 considered Jennings v Mather [1901] 1 QB 108 cited In re Law Guarantee Trust and Accident Society Ltd: Liverpool Mortgage Insurance Company's Case [1914] 2 Ch 617 discussed Cruse v Paine (1868) 6 Eq 641 considered In re Perkins [1898] 2 Ch 182 considered In re Richardson [1911] 2 KB 705 cited Ramsay v National Australia Bank Ltd [1989] VR 59 considered Nolan v Collie (2003) 7 VR 287 cited Grime Carter & Co Pty Ltd v Whytes Furniture (Dubbo) Pty Ltd [1983] 1 NSWLR 158 cited Re ADM Franchise Pty Ltd (1983) 7 ACLR 987 cited Re Matheson (1994) 49 FCR 454 cited Macquarie Health Corporation Ltd v Commissioner of Taxation (1999) 96 FCR 238 discussed Deputy Commissioner of Taxation v Dexcam Australia Pty Ltd (2003) 129 FCR 582 cited Deputy Commissioner of Taxation v Broadbeach Properties Pty Ltd (2008) 248 ALR 693 cited Goodin v Federal Commissioner of Taxation (2002) 50 ATR 220 cited Conley v Commissioner of Taxation (1997) 152 ALR 467 cited Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355 cited Warburton J, Tudor on Charities (9th ed, Sweet & Maxwell, 2003) Merralls JD, "Unsecured Borrowings by Trustees of Commercial Trusts" (1993) 10 Australian Bar Review 248 Finn PD (ed), Essays in Equity (Sweet & Maxwell, 1985) Heydon JD and Leeming MJ, Jacobs' Law of Trusts in Australia (7th ed, LexisNexis, Butterworths, 2006) Gronow M, McPherson's Law of Company Liquidation (5thed, Thompson Lawbook Co, 2006) COMMISSIONER OF TAXATION v BRUTON HOLDINGS PTY LIMITED (IN LIQUIDATION) and PERSONS TRADING AS PIPER ALDERMAN