EATON and Others v DEPUTY COMMISSIONER OF TAXATION [2006] NSWCA 283

Reported Decision : 67 NSWLR 205

New South Wales Court of Appeal

CITATION: EATON and Others v DEPUTY COMMISSIONER OF TAXATION [2006] NSWCA 283 This decision has been amended. Please see the end of the judgment for a list of the amendments.

HEARING DATE(S): 23 August 2005

JUDGMENT DATE: 19 October 2006

JUDGMENT OF: Handley JA at 1; Hodgson JA at 2; Santow JA at 3

DECISION: Appeals dismissed with costs.

CATCHWORDS: TAXATION – Three directors' parallel liability in circumstances where company's tax liability entirely cancelled by Deed of Company Arrangement – entry of judgment against the directors – whether enforcement of judgment could be resisted on basis of unfairness.

District Court Act 1973 s44(1)(a), s83A LEGISLATION CITED: Income Tax Assessment Act 1936 (Cth) s160M(3), s222ALA, s222AOB, s222AOC(1), s222A0G, s22AOH, s222AOI, Supreme Court Rules Part 12 rule 5(b)(vi)

Commissioner of Taxation v Orica Limited [1998] 94 CLR 500 CASES CITED: DCT v Harrington (Walmsley DCJ (No 9568/01), 1 October 2003, unreported) Forsyth v Deputy Commissioner of Taxation (2002) 62 NSWLR 132 Stewart v DCT (1997) 38 ATR 26

Stuart Alexander EATON (Appellant CA 40911/04) PARTIES: Kristine Gardner EATON (Appellant CA 40912/04) Glyn Lloyd JONES (Appellant CA 40913/04) DEPUTY COMMISSIONER OF TAXATION (Respondent in each matters)

FILE NUMBER(S): CA 40911/04; 40912/04; 40913/04

COUNSEL: H R SORENSEN/ R L SEIDEN (Appellants in each matter) S GAGELER, SC/ P RODIONOFF (Respondent in each matter)

SOLICITORS: Rodd Peters Lawyers (Appellants in each matters) Office of the Chief Tax Counsel, Australian Taxation Office (Respondents in each matters)