Collie, Ian David Stafford v Deputy Commissioner of Taxation of the Commonwealth of Australia [1996] FCA 77

IN THE FEDERAL COURT OF AUSTRALIA) ) VICTORIA DISTRICT REGISTRY ) VG 762 of 1995 ) GENERAL DIVISION ) BETWEEN: IAN DAVID STAFFORD COLLIE (Applicant) AND: DEPUTY COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA (Respondent) CORAM: Ryan J DATE: 23 February 1996 PLACE: Melbourne MINUTES OF ORDERS THE COURT ORDERS: 1. That the application be dismissed. 2. That the applicant pay the respondent's costs of the application, such costs to be taxed.

NOTE: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IN THE FEDERAL COURT OF AUSTRALIA) ) VICTORIA DISTRICT REGISTRY ) VG 762 of 1995 ) GENERAL DIVISION ) BETWEEN: IAN DAVID STAFFORD COLLIE (Applicant) AND: DEPUTY COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA (Respondent) CORAM: Ryan J DATE: 23 February 1996 PLACE: Melbourne

REASONS FOR JUDGMENT

RYAN J: There is before the Court an application by Ian David Stafford Collie ("the taxpayer") pursuant to s.39B of the Judiciary Act seeking, amongst other things, an order that the respondent, Deputy Commissioner of Taxation ("the Commissioner") be restrained from initiating or prosecuting any proceedings or taking any further action to collect from the taxpayer amounts claimed in five notices of assessment. The first of those assessments issued under cover of a notice of 20 June 1985 and the others on 15 April 1986. The amended assessments embodied in those notices imputed to the taxpayer a taxable income for each of the years ended 30 June 1978, 1979, 1980, 1981 and 1982 amounting to something in the order of $12,576,000. As a result, the taxpayer was assessed to tax, including additional tax, in respect of the same years of about $17,000,000.

On 22 April 1987, the Commissioner issued proceedings (No. 1405 of 1987) in the Supreme Court of Victoria seeking to recover from the taxpayer the amount due under the amended assessment for the tax year ended 30 June 1978. On 10 June 1988, a deed was executed between the taxpayer and certain entities with which he was associated on the one hand and the Commissioner on the other. That deed included, amongst others, these recitals: "2. Whereas: 2.1 Various assessments as to Income Tax (details of which are included in the Second Schedule) have for some or all of the years in the relevant period issued to the Taxpayers or some of them. 2.2 The Taxpayers have directly or indirectly been involved in transactions with entities listed in the Second Schedule which have or might give rise to assessments as to Recoupment Tax being made. 2.3 At the date of this deed the said assessments remain unpaid. 2.4 The Taxpayers or some of them have lodged or caused to be lodged objections to some or all of the said assessments. 2.5 Some or all of the said objections remain undetermined and other objections have been disallowed and referred to the Administrative Appeals Tribunal (or its predecessor the Taxation Boards of Review) the Supreme court or the Federal Court and have not come on for hearing. 2.6 Assets said by the Deputy Commissioner to be beneficially owned by Collie, are held in the name of one or more of the Collie entities. 2.7 The Taxpayers and the Deputy Commissioner desire to settle and finalise all liabilities, assessments, objections, appeals, and references as yet undetermined in respect of Income Tax and Recoupment Tax. 2.8 The Deputy Commissioner, his officers and the Taxpayers wish to settle all actual and potential Administrative proceedings and Civil Litigation relating to the taxation affairs of the Taxpayers during the relevant period." The operative parts of the deed included, so far as is relevant, these covenants: