Arundel Chiropractic Centre Pty Ltd v Deputy Commissioner of Taxation [2001] HCA 26

HIGH COURT OF AUSTRALIA

CALLINAN J

ARUNDEL CHIROPRACTIC CENTRE PTY LTD APPLICANT

AND

DEPUTY COMMISSIONER OF TAXATION RESPONDENT

Arundel Chiropractic Centre Pty Ltd v Deputy Commissioner of Taxation

[2001] HCA 26

16 February 2001

B61/1999

ORDER

1. Application removed.

2. Institute of Taxation Research Pty Limited joined as a party to the proceedings.

3. Institute of Taxation Research Pty Limited to pay the costs of the respondent, including costs of the proceedings seeking joinder.

Representation:

A J H Morris QC with A Julian-Armitage for the applicant (instructed by Rea & Sockhill)

P V Slattery with G L Ebbeck for the respondent (instructed by Australian Government Solicitor)

Notice: This copy of the Court's Reasons for Judgment is subject to formal revision prior to publication in the Commonwealth Law Reports.

CALLINAN J.

The facts

1. On 30 June 1999, the Deputy Commissioner of Taxation issued and served a statutory demand on the applicant pursuant to s 459E of the Corporations Law. It required payment of unpaid tax and additional tax for late payment in the sum of $8001.14. The applicant did not comply with the statutory demand. On 15 July 1999 the applicant filed an Originating Application in the Supreme Court of Queensland seeking to set the demand aside pursuant to s 459G of the Corporations Law. The matter came on before Muir J on 4 August 1999. His Honour ordered that the application be dismissed with costs. His Honour stated:

"My reasons for the orders are those given in the matter of Kevjen Pty Ltd[1] which apply equally to this matter."

In that case, his Honour stated that the grounds of appeal in Kevjen were the same as in this case[2]:

"The principal one is that there is a genuine dispute as to the existence of the debt [arising out of an income tax assessment under the Income Tax Assessment Act 1936 (Cth)]. The dispute is said to arise as a result of the applicant's assertion that the Constitution is legislation of a foreign power, namely, that of the United Kingdom.