The Deputy Commissioner of Taxation v Muc (No 1) [2006] NSWDC 205

New South Wales District Court

CITATION: The Deputy Commissioner of Taxation v Muc (No 1) [2006] NSWDC 205

HEARING DATE(S): 24, 25, 26,27 and 31 July 2006

JUDGMENT DATE: 29 August 2006

JURISDICTION: District Court

JUDGMENT OF: Johnstone DCJ at 1

DECISION: Judgment for the plaintiff

CATCHWORDS: TAXES AND DUTIES - proceedings for the recovery of primary liabilities for unpaid PAYG income tax, GST, PAYG and PAYE withholding tax together with a general interst charge (GIC) - various defences raised but rejected, including the Limitation Act, 1969 (NSW) - state court not entitled to look behind assessments of income tax and the taxpayer must challenge the correctness of the assessments in the AAT or Federal Court - principle of 'pay first, argue later' applied - LIMITATION OF ACTIONS - state limitation legislation not available to defeat claims for tax liabilities arising under Commonwealth tax legislation

Income Tax Assessment Act 1936 (Cth) Taxation Administration Act 1953 (Cth) LEGISLATION CITED: A New Tax System Act 1999 (Cth) A New Tax System (Goods and Services Tax) Act 1999 (Cth) Judiciary Act 1903 (Cth) Limitation Act, 1969 (NSW): s 14

Australian Securities and Investment Commission v Rich [2005] NSWCA 152 at [155] Browne v Dunn (1893) 6 R 67 Deputy Commissioner of Taxation v Richard Walter Pty Limited (1955) 183 CLR 168 CASES CITED: DFC of T v Akers 89 ATC 4725 at 4727 Deputy Commissioner of Taxation (NSW) v DTR Securities Pty Ltd; Deputy Commissioner of Taxation (NSW) v Moorebank Pty Limited (1988) 165 CLR 55 F J Bloeman Pty Ltd v Federal Commissioner for Taxation 35 ALR 104 Jones v Dunkel (1959) 101 CLR 298 Trautwein v FCT (1936) 56 CLR 63 at 87