Knights, D.W. as Trustee of The Bankrupt estate of Edelsten, G.W. & Anor v. Deputy Commissioner of Taxation & Anor [1987] FCA 614

Syme. 8 - JUDGMENT No. b\4/ oh

CATCHWORDS

BANKRUPTCY - Income tax - Effect of notices under s.218 of the

Income Tax Assessment Act 1936 where taxpayer becomes bankrupt -

Notices in respect of payments constituting income of bankrupt -

Position in respect of income earned prior to bankruptcy.

Bankruptcy Act 1966, 83.118, 131 Income Tax Assessment Act 1936, 3.218

DESMOND WILLIAM KNIGHT AS TRUSTEE OF THE BANKRUPT ESTATE OF GEO TER EDELSTEN & GEO WALTER EDELSTEN -V- DEPUTY

COMMISSIO fT. ON .

No. 1136 of 1987

Burchett J. Sydney 4 November 1987

| ) i 1 ~9NOVI987

FEDERAL COURT OF AUSTRALIA

PRINCIPAL REGISTRY

N FEDERAL COURT OF AUSTRALIA G DIVISION R Y DISTRICT OF THE STATE OF

NEW SOUTH WALES AND THE AUSTRALIAN APITAL TORY

No. 1136 of 1987

BETWEEN : DESMOND WILLIAM KNIGHT AS TRUSTEE OF THE BANKRUPT ESTATE OF GEOFFREY WALTER EDELSTEN

First Applicant

GEOFFREY WALTER EDELSTEN

Second Applicant

DEPUTY COMMISSTONER OF TAXATION

First Respondent

HEALTH INSURANCE COMMISSION

Second Respondent

REASONS FOR JUDGMENT

BURCHETT J.

By an application (as amended by leave during the course of the hearing) the applicants sought relief in respect of certain notices under s.218 of the Income Tax Assessment Act 1936 issued by the first respondent. The second respondent, the recipient of the notices, submitted to such order other than as

2.

to costs as the Court might make. During the course of the hearing, on 22 October 1987, a special resolution was passed at a meeting of creditors removing Mr. Knight from his trusteeship and appointing Mr. M.C. Donnelly, a registered trustee, as trustee in his place. Mr. Donnelly arranged for counsel to be briefed who repeated certain of the submissions previously made to me on behalf of the former trustee, but Mr. Donnelly has not as yet been formally substituted as an applicant or joined as a respondent. I propose to hear counsel further as to the appropriate course upon the bringing in of short minutes which will be required pursuant to these reasons. Following the substitution of Mr. Donnelly, I excused the solicitor, who had until then represented the trustee, from further attendance, but it will be necessary also to make an order to provide for the