Re Ellis, G.J. v Ex parte Jefferson, P.G. & Anor [1995] FCA 81

Re Ellis, G.J. v Ex parte Jefferson, P.G. & Anor [1995] FCA 81

The application was dismissed because Mr. Ellis did not establish that the compulsory contribution notice was invalid. The trustees lacked sufficient information, due to inadequate cooperation by the bankrupt, to identify his actual income, expenses, or likely income tax liability, and their reliance on the employer's billings for his services was not shown to be unjustifiable. Even if there had been some substance in the complaints, discretionary declaratory relief would not have been granted where Division 4B provided review avenues through the Inspector-General and the AAT and there was no evidence those avenues could not have been pursued urgently. The s. 178 review claim failed for...

Jurisdiction
Australia
Judgment Date
17 February 1995
Procedural Posture
Bankruptcy Application / Application by a Bankrupt for Declaratory Relief, Permission to Leave Australia, and Review of Trustees' Decision
Outcome
The entire application of the bankrupt was dismissed.
Legal Topics
['compulsory Contribution Assessment' 'permission for Bankrupt to Leave Australia' 'declaratory Relief' "review of Trustee's Decision" 'assessable Income of Bankrupt' 'income Tax and Expenses Deductions']
['bankruptcy' 'administrative Law'] ['compulsory Contribution Assessment' 'permission for Bankrupt to Leave Australia' 'declaratory Relief' "review of Trustee's Decision" 'assessable Income of Bankrupt' 'income Tax and Expenses Deductions']

Case Brief

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Procedural Posture

Bankruptcy Application / Application by a Bankrupt for Declaratory Relief, Permission to Leave Australia, and Review of Trustees' Decision

Legal Issues

  1. 1 ['Whether the notice of compulsory contribution dated 18 January, 1995 was an assessment in terms of Division 4B of the Bankruptcy Act 1966 (Cth).' 'Whether the Court should grant declaratory relief under s. 30(1)(b) of the Bankruptcy Act 1966 (Cth) notwithstanding the review procedures in Subdivision G of Division 4B.' "Whether the trustees' assessment was invalid because they treated amounts billed by the bankrupt's employer for the bankrupt's services as the bankrupt's income." "Whether the trustees' assessment was invalid because no allowance was made for expenses incurred in earning income." "Whether the trustees' assessment was invalid because no allowance was made for income tax under s. 139N(a)(i)." "Whether the Court could or should review the trustees' assessment under s. 178 of the Bankruptcy Act 1966 (Cth)." 'Whether the bankrupt should be granted permission to leave Australia under Division 4C of the Bankruptcy Act 1966 (Cth).']

Ratio Decidendi

The application was dismissed because Mr. Ellis did not establish that the compulsory contribution notice was invalid. The trustees lacked sufficient information, due to inadequate cooperation by the bankrupt, to identify his actual income, expenses, or likely income tax liability, and their reliance on the employer's billings for his services was not shown to be unjustifiable. Even if there had been some substance in the complaints, discretionary declaratory relief would not have been granted where Division 4B provided review avenues through the Inspector-General and the AAT and there was no evidence those avenues could not have been pursued urgently. The s. 178 review claim failed for...

Court Disposition

The entire application of the bankrupt was dismissed.

Orders

  • ['The entire application of the bankrupt is dismissed.' "The trustees' costs of and incidental to the bankrupt's application, except their costs in respect of counsel's appearance on the hearing of the application, be taxed and paid out of the bankrupt's estate."]