Cussen and Anor v Commissioner of Taxation [2003] NSWSC 841

Reported Decision : 47 ACSR 107

New South Wales Supreme Court

CITATION : Cussen and Anor v Commissioner of Taxation [2003] NSWSC 841 HEARING DATE(S) : 19 to 22 May, 2003 JUDGMENT DATE : 12 September 2003 JURISDICTION: Equity Division JUDGMENT OF : Palmer J DECISION : Liquidator's Amended Originating Process dismissed.

CATCHWORDS : CORPORATIONS - INSOLVENCY - UNFAIR PREFERENCE - Substantial trading company obtains extensions of time to make sales tax payments and gives explanation of temporary illiquidity - ATO grants extensions - timetable for deferred payments substantially complied with - whether reasonable person in ATO's position would have had grounds for suspecting insolvency - whether special position and internal procedures of ATO relevant in applying objective test under s.588FG(2)(b)(ii) Corporations Act. LEGISLATION CITED : Corporations Act 2001 (Cth) - s.588FA, s.588FC, s.588FE, s.588FG Corporations Law - s.459E - Dean-Willcocks v Commonwealth Bank of Australia (2003) 45 ACSR 564 - Harkness v Commonwealth Bank of Australia Ltd (1993) 32 NSWLR 543 - Queensland Bacon Pty Ltd v Rees (1966) 115 CLR 266 CASES CITED : - Keith Smith East West Transport Pty Ltd (in liq) v Australian Taxation Office (2002) 42 ACSR 501 - Sparad (No 100) Ltd (formerly AEFC Ltd) v J.B. Harkness (as liquidator of Spedley Securities Ltd (in liq) (unrep. NSWCA 14 February 1997) - Sutherland v Eurolinx Pty Ltd (2001) 37 ACSR 477 - Wily v Lo Presti (No 2) (1997) 16 ACLC 85 Neil Robert Cussen as Liquidator for Akai Pty Limited (in liquidation) - First Plaintiff PARTIES : Akai Pty Limited (in liquidation) - Second Plaintiff Commissioner of Taxation - Defendant FILE NUMBER(S) : SC 2036/01 COUNSEL : N.A. Cotman SC, G. Lucarelli - Plaintiffs M.R. Aldridge SC, P.D. Rodionoff - Defendant SOLICITORS : Minter Ellison - Plaintiffs Australian Government Solicitor - Defendant