Fyna Projects Pty Ltd v Deputy Commissioner of Taxation [2018] FCA 2041

FEDERAL COURT OF AUSTRALIA

Fyna Projects Pty Ltd v Deputy Commissioner of Taxation [2018] FCA 2041 File number: NSD 1921 of 2017

Judge: THAWLEY J

Date of judgment: 21 December 2018

Catchwords: TAXATION – review of decisions of the Deputy Commissioner of Taxation to issue notices under s 260-5 of Sch 1 to the Taxation Administration Act 1953 (Cth) – where applicant paid amounts in breach of a s 260-5 notice – where Commissioner subsequently issued s 260-5 notices to third party debtors of the applicant – whether notices issued to third parties being debtors of the applicant were invalid – whether the applicant's breach of s 260-5 gave rise to a "tax-related liability" within the meaning of s 255-1 which could found the issuing of further notices – whether the applicant had a "pecuniary liability" to the Commonwealth arising "directly" under a taxation law TAXATION – whether s 260-5 notices were invalid – whether the notices issued to third party debtors of the applicant were issued for an improper purpose – whether the notices issued to the applicant and its third party debtors were invalid because they identified the amounts required to be paid disjunctively – whether the notices were otherwise liable to be set aside as vague or ambiguous in certain identified respects CONSTITUTIONAL LAW – whether s 260-5 is supported by the taxation power in s 51(ii) of the Constitution – whether s 51(ii) authorised the issuing of notices to third party debtors of the applicant in respect of a "tax-related liability" purportedly created by breach of an earlier notice issued to the applicant under s 260-5 – whether the true source of legislative power was s 51(xxxi) of the Constitution