Saunders, B. v The Commissioner of Taxation [1987] FCA 747

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JUDGMENT no. 42.732.

IN FEDERAL COURT OF AUS AUS

GENERAL DIVISION

Jenkinson Jd.

CORAM:

DATE: 16 December, 1987

IA

DISTRICT REGISTRY

REASONS FOR J

Motion for an order

for

) ) No.

)

SA G62 of 1986

IN THE MATTER of the TAXATION (UNPAID COMPANY TAX) ASSESSMENT ACT 1982

and

IN THE MATTER of the TAX ASSESSMENT ACT 1936

INCOME

and

IN THE MATTER of an appeal thereunder against an assessment of promoter recoupment tax dated the 30th day of October, 1984 for

unpaid undistributed profits tax of H. W. Holdings Pty. Ltd. for the year of income ended the 30th June, 1978

BARRY SAUNDERS

Appellant THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUS IA Respondent MENT further particulars of an

assessment of promoters recoupment tax.

2.

The motion is in an appeal against the respondent's

decision disallowing the applicant's objection against the

assessment. The respondent furnished particulars of the assessment which included the assertion that notice of an assessment of undistributed profits tax in relation to a company, H. W. Holdings Pty. Ltd., concerning which the promoters recoupment tax assessment had been raised, had been served "in accordance with the provisions of sub-section 15(7)" of the Taxation (Unpaid Company Tax) Assessment Act 1982 (" the 1982 Assessment Act"). Sub-section 15(7) of the 1982 Assessment Act is concerned only with service of what are in s.15 called notional assessments, which are authorised by sub-sections 15(3) and 15(4) to be made in certain circumstances defined in 5.15, of ordinary company tax or undistributed profits tax that would be payable by a company in relation to a year of income if the company had not ceased to exist. Section 15 is a provision supplementary to the