Stedman v Deputy Commissioner of Taxation [2000] FCA 336

FEDERAL COURT OF AUSTRALIA Stedman v Deputy Commissioner of Taxation [2000] FCA 336

BANKRUPTCY – appeal from a decision to sequestrate the debtors' estates in spite of the debtors' compositions having been accepted by creditors' meetings – whether the trial judge had regard to relevant considerations in deciding to set aside the debtors' compositions - unreasonableness of compositions - not calculated to benefit creditors - real prospect of sham transactions - issues of credibility EVIDENCE – admissibility of the transcript of proceedings in the Administrative Appeals Tribunal to review the merits of tax assessments in an application to the Federal Court to set aside compositions accepted by creditors' meetings Bankruptcy Act 1966 (Cth), ss 189A, 222, 239, 242 House v The King (1936) 55 CLR 449, applied Sharrment Pty Ltd v Official Trustee in Bankruptcy (1988) 18 FCR 449, considered Khera v National Australia Bank Ltd (1996) 71 FCR 133, applied Re Mills ex parte Lloyds v Prentice & Mills (1997) 73 FCR 551, applied Re Segal ex parte Lensworth Finance Pty Ltd v Segal & Ward (1975) 9 ALR 154, referred to ACT v Badcock [2000] FCA 142, referred to JACQUELINE ANNE STEDMAN v DEPUTY COMMISSIONER OF TAXATION N 320 OF 1999 FREDERIK ANTONIUS MARE v DEPUTY COMMISSIONER OF TAXATION N 321 OF 1999 EINFELD, WHITLAM & WEINBERG JJ 23 MARCH 2000 SYDNEY

IN THE FEDERAL COURT OF AUSTRALIA N 320 OF 1999

NEW SOUTH WALES DISTRICT REGISTRY

On appeal from a Judge of the Federal Court of Australia

BETWEEN: JACQUELINE ANNE STEDMAN

First Appellant

AND: DEPUTY COMMISSIONER OF TAXATION

Respondent

JUDGE: EINFELD, WHITLAM & WEINBERG JJ

DATE OF ORDER: 23 MARCH 2000

WHERE MADE: SYDNEY

THE COURT ORDERS THAT: 1. the appeal be dismissed with costs. Note: Settlement and entry of order is dealt with in Order 36 of the Federal Court Rules.