Deputy Commissioner of Taxation v King [2016] FCA 1281

FEDERAL COURT OF AUSTRALIA

Deputy Commissioner of Taxation v King [2016] FCA 1281 File number: NSD 408 of 2016

Judge: RARES J

Date of judgment: 8 July 2016

Catchwords: BANKRUPTCY – application to set aside debtor's personal insolvency agreement pursuant to s 222(1)(d) or (e) Bankruptcy Act 1966 (Cth) – where agreement was approved by bare majority of creditors that included liquidators of insolvent companies formerly controlled by debtor and debtor's related entities with substantial insolvent trading claims against debtor – where material items of expenditure and interests of debtor falsely omitted from or incorrectly disclosed in statement of affairs – where unexplained credits to debtor's bank account greatly exceeded debtor's declared income – where debtor's spending extravagant – where applicant creditor offered indemnity for trustee in bankruptcy to investigate debtor's affairs – where trustee of agreement had already conducted limited investigations – where return of between 1 to 4 cents in dollar to creditors under the agreement – where sequestration order against estate of debtor might reduce return to creditors to nil – whether full investigation of the debtor's affairs would be in the interests of creditors and the public

Legislation: Bankruptcy Act 1966 (Cth) ss 81, 188, 190, 222, 231, 267 Corporations Act 2001 (Cth) Evidence Act 1995 (Cth) s 128

Cases cited: Augustyn v Putnin (1988) 83 ALR 514 Hingston v Westpac Banking Corporation (2012) 200 FCR 493 Owners of "Shin Kobe Maru" v Empire Shipping Co Inc (1994) 181 CLR 404 Re Emanuel George Doukidis: Ex Parte Consolidated Construction Pty Ltd [1985] FCA 289 Re Mills; Ex Parte Lloyd's (1997) 73 FCR 551 Re Moulton; Ex Parte [The Law Society of New South Wales] Beneficial Finance Corporation Limited [1984] FCA 451 Re Williamson; Ex parte Wearne (1980) 31 ALR 598