Zolsan Pty Ltd v Deputy Commissioner of Taxation [2007] NSWSC 1326

Reported Decision : 67 ATR 652 (2007) 25 ACLC 1,526

New South Wales Supreme Court

CITATION : Zolsan Pty Ltd v Deputy Commissioner of Taxation [2007] NSWSC 1326

HEARING DATE(S) : 3 September 2007

JUDGMENT DATE : 21 November 2007

JURISDICTION : Equity Division Corporations List

JUDGMENT OF : Young CJ in Eq

DECISION : Statutory demand issued by defendant to be set aside. Defendant to pay plaintiff's costs of the proceedings.

CATCHWORDS : CORPORATIONS [1487]- Statutory demand- Application to set aside demand- Alleged dispute as to indebtedness- Partnership debt, but only one partner the subject of the demand- Default assessment of GST- Plaintiff fails to object to notices of assessment preceding demand- Liability for GST arises prior to issue of assessment- Plaintiff's failure to object to assessments does not mean debt must be undisputed- Possibility that debt may be successfully challenged sufficient reason to set aside demand. CORPORATIONS [1493]- Statutory demand- Application to set aside demand- Whether when debt is owed to Commonwealth, Deputy Commissioner has authority to issue statutory demand- Held demand properly made.

Bankruptcy Act 1914 (UK), ss 114, 115 Bankruptcy Act 1966 (Cth), ss 45, 46 LEGISLATION CITED : Corporations Act 2001 (Cth), ss 459E, 459G, 459H, 459J, 459M, 459S, 459T, Part 5.4 Income Tax Assessment Act 1936 (Cth) Taxation Administration Act 1953 (Cth), s 8AAZJ, Part IVC, paras 100-15, 105-100 and 255-5 of Sch 1

Australian Securities Commission v Marlborough Gold Mines Ltd (1993) 177 CLR 485 Bluehaven Transport Pty Ltd v Commissioner of Taxation (2000) 157 FLR 26 Deputy Commissioner of Taxation v Richard Walter Pty Ltd (1995) 183 CLR 168 Deputy Commissioner of Taxation v Stjepovic (1991) 22 ATR 366 Deputy Federal Commssioner of Taxation v Roma Industries Pty Ltd (1976) 6 ATR 54 Ex parte Clarke (1832) 1 Deacon & Chitty 546 Eyota Pty Ltd v Hanave Pty Ltd (1994) 12 ACSR 785 F J Bloeman Pty Ltd v Federal Commissioner of Taxation (1981) 147 CLR 360 Hoare Bros Pty Ltd v Commissioner of Taxation (1995) 30 ATR 220 Hoare Bros Pty Ltd v Commissioner of Taxation (1996) 62 FCR 302 James v Deputy Commissioner of Taxation (1957) 97 CLR 23 CASES CITED : Kable v Director of Public Prosecutions (NSW) (1996) 189 CLR 51 Kalis Nominees Pty Ltd v Deputy Commissioner of Taxation (1995) 31 ATR 188 KW & KM Quinn Investments Pty Ltd v Deputy Commissioner of Taxation (2003) 54 ATR 206 MacCormick v Commissioner of Taxation (1984) 158 CLR 622 Moutere Pty Ltd v Deputy Commissioner of Taxation (2000) 44 ATR 263 Neutral Bay Pty Ltd v Commissioner of Taxation (2006) 205 FLR 470 Neutral Bay Pty Ltd v Deputy Commissioner of Taxation [2007] QCA 312 Nodnara Pty Ltd v Deputy Commissioner of Taxation (No 2) (1997) 97 ATC 4982 Platypus Leasing Inc v Federal Commissioner of Taxation (No 3) (2005) 59 ATR 84 Platypus Leasing Inc v Federal Commissioner of Taxation (2005) 61 ATR 239 Re W Carter Smith; Ex parte The Commissioners of Taxation (1908) 8 SR (NSW) 246 Woodgate v Davis (2002) 55 NSWLR 222