In the matter of Plutus Payroll Australia Pty Limited [2017] NSWSC 1854

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Plutus Payroll Australia Pty Limited [2017] NSWSC 1854 Hearing dates: 12, 13 December 2017 Date of orders: 14 December 2017 Decision date: 14 December 2017 Jurisdiction: Equity - Corporations List Before: Brereton J Decision: .Statutory demand varied; proceedings stayed pending related criminal committal proceedings, and provisional liquidators appointed. Catchwords: CORPORATIONS — Winding up – Statutory demand – offsetting claim – where funds frozen by proceeds of crime order – held, not a sufficient other reason under s459J(1)(b) – where there is an arguable and genuine offsetting claim under s 8AAZL of the (CTH) Taxation Administration Act 1953 ­– held, claim may be offset pursuant to (CTH) Corporations Act s 459H(4)

CORPORATIONS — Winding up – Appointment of provisional liquidator – where prima facie case of insolvency and concern assets may be at risk –related proceeds of crime proceedings – held, it is fair and just to balance the competing interests to appoint a provisional liquidator be appointed with conditions.

CORPORATIONS — Winding up –Application for stay – whether proceeding should be otherwise stayed until the conclusion of the pending committal proceedings – held proceedings should be stayed. Legislation Cited: (CTH) Corporations Act 2001 s 459H, s 459J (CTH) Criminal Code 1995 s 135.4(3) (CTH) Income Tax Assessment Act 1936 (CTH) Proceeds of Crime Act 2002 (CTH) Taxation Administration Act 1953 (NSW) Building and Construction Industry Security of Payments Act 1999 (NSW) Evidence Act 1995 s 128 Cases Cited: Cameron's Unit Services Pty Ltd v Kevin R Whelpton & Associates Pty Ltd (1984) 4 FCR 428 Ceasar v Sommner [1980] 2 NSWLR 929 Clyne v The Commissioner of Taxation (1981) 150 CLR 1 Commissioner of Australian Federal Police v W [2016] NSWSC 683 Commissioner of the Australian Federal Police v Zhao (2015) 255 CLR 46; [2015] HCA 5 Deputy Commissioner of Taxation v Broadbeach Properties (2008) 237 CLR 473 Douglas Aerospace Pty Limited, In the matter of [2015] NSWSC 167 Golden City Car & Truck Centre Pty Ltd v Deputy Commissioner of Taxation [1999] FCA 922; (1999) 42 ATR 379 Plutus Payroll Pty Limited, In the Matter of [2017] NSWSC 1360 Jefferson Ltd v Bhetcha [1979] 1 WLR 898 Lee v The Queen (2014) 253 CLR 458; [2014] HCA 20 McMahon v Gould (1982) 7 ACLR 202 Ransley v Commissioner of Taxation [2016] FCA 778 Seller v Commissioner of Taxation [2013] FCA 1373; (2013) 308 ALR 376 Smith v Selwyn [1914] 3 KB 98 X7 v Australian Crime Commission (2013) 248 CLR 92; [2013] HCA 29 Category: Principal judgment Parties: Deputy Commissioner of Taxation (Plaintiff/Respondent) Synep Pty Ltd (ACN 611 299 328) (Eleventh Defendant/Applicant) Representation: Counsel: J M White with K Petch (Plaintiff/Respondent) R Seiden SC with A Gerard (Eleventh Defendant/Applicant)