Deputy Commissioner of Taxation v Arora [2017] NSWSC 1016

Supreme Court New South Wales

Medium Neutral Citation: Deputy Commissioner of Taxation v Arora [2017] NSWSC 1016 Hearing dates: 28 July 2017 Date of orders: 04 August 2017 Decision date: 04 August 2017 Jurisdiction: Common Law Before: Davies J Decision: (1) Judgment for the Plaintiff in the sum of $1,894,929.53.

(2) The Defendant is to pay the Plaintiff's costs. Catchwords: TAXES AND DUTIES – proceedings for recovery against Defendant under Taxation Administration Act 1953 (Cth) – defendant's companies failed to pay withholding tax and superannuation guarantee charges – director penalty notices issued to defendant – liability not in issue – whether defences of illness or taking all reasonable steps are available under s 269-35 TAA – misconceived defence that liquidators may have sufficient funds to pay companies' tax liabilities – judgment in favour of plaintiff

CIVIL PROCEDURE – adjournment – application by defendant shortly before hearing - defendant's companies in liquidation – whether defendant's company's liabilities may be paid by other contingencies – defendant would be entitled to refund even if contingencies eventuated – no basis for adjournment Legislation Cited: Civil Procedure Act 2005 (NSW) Income Tax Assessment Act 1936 (Cth) Income Tax Assessment Act 1997 (Cth) Superannuation Guarantee (Administration) Act 1992 (Cth) Taxation Administration Act 1953 (Cth) Cases Cited: Canty v Deputy Commissioner of Taxation (2005) 63 NSWLR 152; [2005] NSWCA 84 Deputy Commissioner of Taxation v George (2002) 55 NSWLR 511; [2002] NSWCA 336 Deputy Commissioner of Taxation of the Commonwealth of Australia v Woodhams (2000) 199 CLR 370; [2000] HCA 10 Re Scobie & Anor; ex parte Commissioner of Taxation (1995) 59 FCR 177 Category: Principal judgment Parties: Deputy Commissioner of Taxation (Plaintiff) Ajay Arora (Defendant) Representation: Counsel: J Mitchell (Plaintiff) I Archibald (Defendant)