Neutral Bay P/L and Ors. v Deputy Commissioner of Taxation


(Judgment by: Muir JA)

Neutral Bay Pty Ltd
vDeputy Commissioner of Taxation
Ma Howard Racing Pty Ltd
vDeputy Commissioner of Taxation
Broadbeach Properties Pty Ltd
vDeputy Commissioner of Taxation

Court:
Supreme Court of Queensland

Judges: Keane JA
Holmes JA
Muir JA

Subject References:
Corporations
Winding Up
Winding Up In Insolvency
Statutory Demand
Application To Set Aside Demand
Genuine Dispute As To Indebtedness
Assessing Genuineness
Tests To Be Applied
where appellant served respondents with statutory demand
where respondents pursuing Part IVC proceedings
whether statutory demand could be set aside under s 459H
whether discretion under s 459J correctly exercised

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999 (Cth) - s 17-5; s 33-5; s 165-40; s 165-50
Corporations Act 2001 (Cth) - s 459H; s 459J; s 459P
Income Tax Assessment Act 1936 (Cth) - s 177; s 204
Taxation Administration Act 1953 (Cth) - s 24

Case References:
Arcade Badge Embroidery Co Pty Ltd v Deputy Commissioner of Taxation (2005) - 157 ACTR 22
Batagol v Federal Commissioner of Taxation - [1963] HCA 51; (1963) 109 CLR 243
Deputy Commissioner of Taxation v Richard Walter Pty Ltd - [1995] HCA 23; (1995) 183 CLR 168
Deputy Federal Commissioner of Taxation v Brown - [1958] HCA 2; (1958) 100 CLR 32
Hoare Bros Pty Ltd v Commissioner of Taxation - (1996) 62 FCR 302
Kalis Nominees Pty Ltd v DCT - (1995) 31 ATR 188
KW & KM Quinn Investments P/L v DCT - [2004] QCA 91
McAndrew v Federal Commissioner of Taxation - [1956] HCA 62; (1956) 98 CLR 263
Platypus Leasing Inc v Federal Commissioner of Taxation - (2005) 61 ATR 239
Willemse Family Company Pty Ltd v Deputy Commissioner of Taxation - [2003] 2 Qd R 334

Hearing date: 5 and 6 September 2007
Judgment date: 28 September 2007

Brisbane

Judgment by:
Muir JA

[89] I agree with the reasons of Keane JA and the orders he proposes.

[1]
Neutral Bay Pty Ltd v Deputy Commissioner of Taxation; MA Howard Racing Pty Ltd v Deputy Commissioner of Taxation; Neutral Bay (Sales) Pty Ltd v Deputy Commissioner of Taxation; Broadbeach Properties Pty Ltd v Deputy Commissioner of Taxation [2006] QSC 394 at [3].

[2]
[2006] QSC 394 at [4].

[3]
[2006] QSC 394 at [5] - [11].

[4]
[2006] QSC 394 at [12].

[5]
[2006] QSC 394 at [52].

[6]
[1994] 2 VR 290 at 295.

[7]
Redglove Holdings Pty Ltd v GNE & Associates Pty Ltd [2001] NSWSC 867; (2001) 165 FLR 72 at 77 - 78 [29] - [31].

[8]
(2005) 61 ATR 239 at 246 [37] - [42].

[9]
(1996) 62 FCR 302.

[10]
[2006] QSC 394 at [26 - [28] (citation footnoted in original).

[11]
[2006] QSC 394 at [30] - [35] (citations footnoted in original).

[12]
[2006] QSC 394 at [45] - [46].

[13]
[2006] QSC 394 at [35].

[14]
[2006] QSC 394 at [48].

[15]
[2006] QSC 394 at [49].

[16]
[2006] QSC 394 at [37] - [38].

[17]
[2006] QSC 394 at [53] - [54].

[18]
[2006] QSC 394 at [38] - [41].

[19]
[2006] QSC 394 at [19] - [25].

[20]
(2005) 157 ACTR 22 at [26] - [27].

[21]
[2006] QSC 394 at [62] - [64].

[22]
(1996) 62 FCR 302 at 310.

[23]
[2006] QSC 394 at [72].

[24]
(1995) 31 ATR 188 at 193.

[25]
[2004] QCA 091.

[26]
[2003] 2 Qd R 334.

[27]
[2001] QSC 377.

[28]
(2000) 34 ACSR 533.

[29]
[1995] HCA 23; (1995) 183 CLR 168.

[30]
[1958] HCA 2; (1958) 100 CLR 32 at 40.

[31]
[1963] HCA 51; (1963) 109 CLR 243.

[32]
DCT v Richard Walter Pty Ltd [1995] HCA 23; (1995) 183 CLR 168 at 195 - 196.

[33]
[1956] HCA 62; (1956) 98 CLR 263 at 274.

[34]
[1956] HCA 62; (1956) 98 CLR 263 at 282 - 283.

[35]
Cf MacCormick v Commissioner of Taxation [1984] HCA 20; (1984) 158 CLR 622 at 640.

[36]
Cf Moutere Pty Ltd v Deputy Commissioner of Taxation (2000) 34 ACSR 533 at 543 [54].

[37]
[1956] HCA 62; (1956) 98 CLR 263 at 270. See also Deputy Commissioner of Taxation v Richard Walter Pty Ltd [1995] HCA 23; (1994) 183 CLR 168 at 196 - 197.

[38]
[2005] NSWSC 388.

[39]
Muller v Dalgety & Co Ltd [1909] HCA 67; (1909) 9 CLR 693 at 696; FCT v Comber (1986) 10 FCR 88 at 96.

[40]
[1993] HCA 15; (1993) 177 CLR 485 at 492.

[41]
Cf Wobelea Pty Ltd v Deputy Commissioner of Taxation (1996) 32 ATR 584 at 587 - 588; Deputy Commissioner of Taxation v Ho (1996) 32 ATR 269; Maddison Resort Pty Ltd v Deputy Commissioner of Taxation [2003] QSC 485 at [18].

[42]
(2005) 157 ACTR 22 at [27].

[43]
[2003] 2 Qd R 334 at [42].

[44]
[2004] QCA 91 at 6.

[45]
(1995) 31 ATR 188 at 193.

[46]
(1996) 62 FCR 302 at 310.

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