Deputy Commissioner of Taxation v Paul Tannous [2016] NSWSC 1654

Supreme Court New South Wales

Medium Neutral Citation: Deputy Commissioner of Taxation v Paul Tannous [2016] NSWSC 1654 Hearing dates: 5 April 2016 Decision date: 24 November 2016 Jurisdiction: Common Law Before: Hall J Decision: Judgment in favour of the plaintiff against the defendant in the amount of $634,830 See [142] as to costs. Catchwords: TAXES AND DUTIES – proceedings relate to the defendant's liability for director penalties in respect of Pay As You Go (PAYG) withholding amounts – Two Director Penalty Notices (DPNs) issued in respect of the PAYG amounts owed by the Company to the ATO – As to the giving of notice under s 269-25 of Schedule 1 of the Taxation Administration Act 1953 (TAA53) the defendant did not admit receiving the first DPN – Pursuant to ss 255-45 and 269-50 of the Taxation Administration Act 1953, the plaintiff does not need to satisfy the Court that a notice was actually received by the defendant so long as the Court is satisfied that a stamped envelope with the DPN was placed in a post box with the correct address – DPNs alleged to be defective as the Notices failed to explain the circumstance in which the penalty will be remitted and misstated the main ways in which the penalty may be remitted, namely, "if the company is being wound up" – Notices sufficiently stated relevant circumstance and ways in which the penalties may be remitted Legislation Cited: Acts Interpretation Act 1901 (Cth) Corporations Act 2001 Evidence Act 1995 Income Tax Assessment Act 1936 (Cth) Tax Laws Amendment (2011 Measures No. 7) Act 2011 (Cth) Taxation Administration Act 1953 Cases Cited: Canty v Deputy Commissioner of Taxation (2005) 63 NSWLR 152; [2005] NSWCA 84 Deputy Commissioner of Taxation v Aitken [2015] WADC 18 Deputy Commissioner of Taxation v Contract Synergies Administration Pty Ltd (2011) 292 ALR 713; [2011] FCA 743 Deputy Commissioner of Taxation v George (2002) 55 NSWLR 511; [2002] NSWCA 336 Deputy Commissioner of Taxation v Healy [2014] WADC 35 Deputy Commissioner of Taxation v Moss (2003) 53 ATR 442; [2003] VSC 294 Deputy Commissioner of Taxation v Saunig (2002) 55 NSWLR 722; [2002] NSWCA 390 Deputy Commissioner of Taxation v Stenner (2003) 53 ATR 316; [2003] QDC 53 Deputy Commissioner of Taxation v Zammitt (2014) 284 FLR 212; [2014] NSWCA 104 Fancourt v Mercantile Credits Ltd (1983) 154 CLR 87; [1983] HCA 25 In the matter of Leasing Holdings Pty Ltd (formerly Charlie Lovett Pty Ltd) [2015] NSWSC 771 Jones v Superannuation Complaints Tribunal (2011) 198 FCR 71; [2011] FCA 1255 Moore v Jack Brabham Holdings Pty Ltd Power v Deputy Commissioner of Taxation (2013) 248 FLR 42; [2013] NSWCA 428 Re Rustic Homes Pty Ltd (1988) 49 SASR 41 Repatriation Commission v Gordon (1990) 100 ALR 255; [1990] FCA 619 Roche v Deputy Commissioner of Taxation (2014) 290 FLR 268; [2014] WASCA 194 Category: Principal judgment Parties: Deputy Commissioner of Taxation (Plaintiff) Paul Tannous (Defendant) Representation: Counsel: Ms JD Little (Plaintiff) Messrs NM Kirby and EWL Anderson (Defendant)