Wily v Commissioner of Taxation [2002] NSWSC 909

New South Wales Supreme Court

CITATION : Wily v Commissioner of Taxation [2002] NSWSC 909 CURRENT JURISDICTION: Equity FILE NUMBER(S) : SC 2612/01 HEARING DATE(S) : 19 February, 6 & 28 March, 2 April and 9 & 17 May 2002 JUDGMENT DATE : 2 October 2002

Andrew Hugh Jenner Wily & Hugh Jenner Wily (as joint liquidators of Boutique Resorts Management Pty Limited) (P1) PARTIES : Boutique Resorts Management Pty Limited (In Liquidation) (P2) Commissioner of Taxation (D) JUDGMENT OF : Hamilton J

COUNSEL : C J Stevens QC & D J Durston (P1 & 2) M R Aldridge SC (D) SOLICITORS : Michell Sillar (P1 & 2) Australian Government Solicitor (D) CATCHWORDS : CORPORATIONS [250], [253] - Winding up - Conduct and incidents of liquidation - Effect of winding up on other transactions - Preferences - Protected transactions - Dealings in good faith - Reasonable grounds for suspecting insolvency - What constitutes - Other matters - Indemnification of Commissioner of Taxation by directors - When cause of action complete. Acts Interpretation Act 1901 (Cth) s 10 Corporations Act 2001 ss 436A, 477, 588FA, 588FC, 588FE, 588FF, 588FG(2) - (5), 588FGA(1) - (4), 588FGB LEGISLATION CITED : Income Tax Assessment Act 1936 ss 220AAM, 221F Interpretation Act 1987 s 68 Supreme Court Act 1970 s 94 Browne v Commissioner of Taxation (1998) 82 FCR 1 George v Rockett (1990) 170 CLR 104 Hillig v Commissioner of Taxation [2001] 2 Qd R 147 Pegulan Floor Coverings Pty Ltd v Carter (1997) 24 ACSR 651 CASES CITED : Queensland Bacon Proprietary Limited v Rees (1966) 115 CLR 266 Re Ermayne Pty Ltd; Sims v Tech Holdings Pty Ltd (1999) 30 ACSR 330 Sands & McDougall Wholesale Pty Ltd (In liq) v Commissioner of Taxation (Cth) [1999] 1 VR 489 Sims v Celcast Pty Ltd (1998) 71 SASR 142 Sutherland (as liquidator of Sydney Appliances Pty Ltd (in liq)) v Eurolinx Pty Ltd (2001) 37 ACSR DECISION : Defence under s 588FG(2) not made out. Payments are voidable transactions. Directors to indemnify Commissioner of Taxation.