In the matter of Citadel Financial Corporation Pty Ltd [2019] NSWSC 65

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Citadel Financial Corporation Pty Ltd [2019] NSWSC 65 Hearing dates: 25 September 2018 Decision date: 13 February 2019 Jurisdiction: Equity Before: White J Decision: Stand over the proceedings to enable the parties to bring in a calculation of the demand as varied in accordance with these reasons. Catchwords: CORPORATIONS – Winding up – Statutory demand – Application to set aside – Offsetting claims – whether asserted input tax credits sufficient to support offsetting claim – whether GST refund payable to third party but assigned to plaintiff sufficient to support offsetting claim – offsetting claim allowed in part

CORPORATIONS – Winding up – Statutory demand – whether genuine dispute about existence or amount of debt – Application of principle in Deputy Commissioner of Taxation v Broadbeach Properties Pty Ltd (2008 ) 237 CLR 473 in proceedings to set aside statutory demand founded on a tax debt or penalty – no genuine dispute as to existence or amount of debts the subject of notices of assessment

TAXES AND DUTIES – income tax and related legislation collection and recovery of tax – whether assessment of administrative penalty is an assessment within the meaning of the Taxation Administration Act 1953 (Cth) and Income Tax Assessment Act 1997 (Cth) and conclusive evidence of amount of penalty and correctness of assessment

CONSTITUTIONAL LAW – whether Commissioner of Taxation exercised judicial power in assessing liability to administrative penalties Legislation Cited: A New Tax System (Goods and Services Tax) Act 1999 (Cth), ss 17-5, 195-1 Corporations Act 2001 (Cth), ss 459G, 459H, 459J, 471A, 474, 477 Income Tax Assessment Act 1922 (Cth) Income Tax Assessment Act 1936 (Cth), s 175 Income Tax Assessment Act 1997 (Cth), s 995-1 Judiciary Act 1903 (Cth), s 78B Racial Discrimination Act 1975 (Cth) Taxation Administration Act 1953 (Cth), ss 3AA, 8AAZC(4A), 8AAZD(1), 8AAZF, 8AAZI, 8AAZJ, 8AAZLF, 8AAZLH,14ZZ, 14ZZM, 14ZZR, Schedule 1 ss 155-35, 155-85, 255-1, 284-5, 284-70, 284-75, 284-80, 284-90, 284-220, 284-B, 288-115, 298-30, 350-10 Treasury Legislation Amendment (Repeal Day) Act 2015 (Cth), Sch 2