Snell v Deputy Commissioner of Taxation [2020] NSWCA 29

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Snell v Deputy Commissioner of Taxation [2020] NSWCA 29 Hearing dates: 1 November 2019 Date of orders: 04 March 2020 Decision date: 04 March 2020 Before: Gleeson JA at [1] Brereton JA at [2] Barrett AJA at [102] Decision: Appeal dismissed, with costs Catchwords: TAXES AND DUTIES – Penalty proceedings under (CTH) Taxation Administration Act 1953 – Obligation to remit amounts withheld from wages and salaries paid to employee – Requirements of director penalty notice – Where amount claimed by Commissioner changed after giving director penalty notice – No requirement to give further notice before commencing recovery proceedings - No requirement to commence proceedings within a reasonable time after expiry of notice

TAXES AND DUTIES – Penalty proceedings under (CTH) Taxation Administration Act 1953 s 269-20 –Defence of justifiable non-participation in management under (CTH) Taxation Administration Act 1953 s 269-35 – What constitutes participation in management for the purposes of the defence – The defence must be established for the entire period from the "due day" until at least the expiry of the director penalty notice Legislation Cited: (CTH) Corporations Act 2001, s 588FGB(5) (CTH) Income Tax Assessment Act, s 222AOB(1) (CTH) Superannuation Guarantee (Administration Act) 1992, s 36 (CTH) Taxation Administration Act 1953, Sch 1, ss 16-70(1), 269-15, 269-20, 269-25, 269-30, 269-35 Cases Cited: AJ Roberts Removals & Storage Pty Limited, In the matter of [2017] NSWSC 1054 Australian Securities and Investments Commission v Reid [2005] FCA 1275 Canty v Deputy Commissioner of Taxation (2005) 63 NSWLR 152; [2005] NSWCA 84 Commissioner for Corporate Affairs v Bracht [1989] VR 821 Cullen v Corporate Affairs Commission (NSW) (1988) 14 ACLR 789 Deputy Commissioner of Taxation v Clark (2003) 57 NSWLR 113; [2003] NSWCA 91 Deputy Commissioner of Taxation v George (2002) 55 NSWLR 511; [2002] NSWCA 336 Deputy Commissioner of Taxation v Holton [2016] VCC 516 Deputy Commissioner of Taxation v Lawson [2017] VSC 789 Deputy Commissioner of Taxation v Lister [2002] QCA 270 Deputy Commissioner of Taxation v McArdle [2004] 2 Qd R 495; [2003] QCA 282 Deputy Commissioner of Taxation v Robertson (2009) 234 FLR 35; [2009] NSWSC 597 Roche v Deputy Commissioner of Taxation (2014) 290 FLR 268; [2014] WASCA 194 Deputy Commissioner of Taxation v Stenner (2003) 53 ATR 316; [2003] QDC 053 Deputy Federal Commissioner of Taxation v Woodhams (2000) 199 CLR 370; [2000] HCA 10 Forsyth v Deputy Commissioner of Taxation (2004) 62 NSWLR 132; [2004] NSWCA 474 Griggs v Australian Securities Commission (1999) 75 SASR 307; [1999] SASC 405 Holpitt Pty Limited v Swaab (1992) 33 FCR 474 Jolly v District Council of Yorketown (1968) 119 CLR 347; [1968] HCA 55 New World Alliance Pty Limited, In the matter of; Sycotex Pty Limited v Baseler (No 2) (1994) 51 FCR 425; [1994] FCA 332 Power v Deputy Commissioner of Taxation (2013) 284 FLR 42; [2013] NSWCA 428 Power v Deputy Commissioner of Taxation (No 2) (2014) 98 ATR 75; [2014] NSWCA 77 Roche v Deputy Commissioner of Taxation [2015] WASCA 196 City of Sandringham v Rayment (1928) 40 CLR 510; [1928] HCA 13 Shaw v Deputy Commissioner of Taxation (2016) 104 ATR 1; [2016] QCA 275 Category: Principal judgment Parties: Keith Eddy Snell (appellant) Deputy Commissioner of Taxation (respondent) Representation: Counsel: D B McGovern SC w S Ipp (appellant) LT Livingston w JP Gatland (respondent)