In the matter of 4 Doonan Street Collinsville Pty Ltd (in liq) [2015] NSWSC 437

Supreme Court New South Wales

Medium Neutral Citation: In the matter of 4 Doonan Street Collinsville Pty Ltd (in liq) [2015] NSWSC 437 Hearing dates: 3 March 2015, supplementary written submissions 10 and 13 March 2015 Decision date: 17 April 2015 Jurisdiction: Equity Division - Corporations List Before: Black J Decision: Determination as to application of Part IIB Div 3 of Tax Administration Act 1953 (Cth) and s 500 of Corporations Act 2001 (Cth) in relevant circumstances. Company entitled to judgment in the sum of 4 debits made other than in accordance with the Taxation Administration Act 1953 (Cth). Parties to bring in short minutes of order to give effect to the judgment Catchwords: TAXES AND DUTIES – running balance accounts – where company in liquidation lodges tax returns relating to transactions prior to winding up – where Commissioner sought to set-off amounts in several tax accounts to determine net position – whether Commissioner's approach inconsistent with pari passu principle.

TAXES AND DUTIES – running balance accounts – where the Commissioner applied tax credits against tax debits in running balance accounts – whether Commissioner was entitled to do so under s 8AAZLA of the Taxation Administration Act 1953 (Cth).

CORPORATIONS – winding up – conduct and incidents of winding up – where Commissioner sought to determine net position within running balance accounts – whether Company had a chose in action as to tax credit prior to set-off – whether amounts in accounts were property under s 9 of the Corporations Act – whether set-off constituted attachment under s 500 of the Corporations Act 2001 (Cth). Legislation Cited: - A New Tax System (Tax Administration) Act 1999 (Cth) - Corporations Act 2001 (Cth) pt 5.5, ss 5A(2), 9, 436A, 439C, 471B, 500, 500(1), 500B, 501(1), 555 - Income Tax Assessment Act 1936 (Cth) - Income Tax Assessment Act 1997 (Cth) s 995-1(1) - Taxation Administration Act 1953 (Cth) pt IIB div 3, sch 1 div 260, ss 8AAZA, 8AAZC(1), 8AAZD, 8AAZL, 8AAZL(1), 8AAZLA, 8AAZLB, 8AAZLF, 8AAZLF(1), 8AAZLG, 8AAZLG(2),8AAZLGA - Taxation Debts (Abolition of Crown Priority) Act 1980 (Cth)