Re Tait, Jon R Ex Parte Deputy Commissioner of Taxation [1996] FCA 280

Re Tait, Jon R Ex Parte Deputy Commissioner of Taxation [1996] FCA 280

The proposed substituted debts could not found a sequestration order because, at the relevant act of bankruptcy on 31 January 1995, they were not liquidated sums payable either immediately or at a certain future time; the relevant assessments and payment dates occurred later, and the non-remitted instalment deductions and related amounts related to later periods. The earlier petition debts had been discharged by the debtor's payment, so the amendment and the petition had to be dismissed.

Jurisdiction
Australia
Judgment Date
26 April 1996
Procedural Posture
Bankruptcy Creditor's Petition Seeking Sequestration of the Debtor's Estate / Motion by Petitioning Creditor to Amend Paragraph 2 of the Petition and Determination of the Petition
Outcome
The motion to amend the petition was dismissed and the petition was dismissed.
Legal Topics
["creditor's Petition" 'amendment of Petition' 'act of Bankruptcy' 'income Tax Assessment' 'debts Due and Payable' 'sequestration Order']
['bankruptcy' 'income Tax'] ["creditor's Petition" 'amendment of Petition' 'act of Bankruptcy' 'income Tax Assessment' 'debts Due and Payable' 'sequestration Order']

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Procedural Posture

Bankruptcy Creditor's Petition Seeking Sequestration of the Debtor's Estate / Motion by Petitioning Creditor to Amend Paragraph 2 of the Petition and Determination of the Petition

Legal Issues

  1. 1 ["Whether the petitioning creditor could amend the creditor's petition to substitute later income tax, provisional tax, group tax and related penalty debts after the debtor paid the amount originally claimed in the petition." 'Whether debts relied on to found a sequestration order must have existed at the date of the relevant act of bankruptcy as liquidated sums payable immediately or at a certain future time.' 'Whether income tax liabilities assessed and made payable after the relevant act of bankruptcy could support the petition.']

Ratio Decidendi

The proposed substituted debts could not found a sequestration order because, at the relevant act of bankruptcy on 31 January 1995, they were not liquidated sums payable either immediately or at a certain future time; the relevant assessments and payment dates occurred later, and the non-remitted instalment deductions and related amounts related to later periods. The earlier petition debts had been discharged by the debtor's payment, so the amendment and the petition had to be dismissed.

Court Disposition

The motion to amend the petition was dismissed and the petition was dismissed.

Orders

  • ['The motion by the petitioning creditor to amend paragraph 2 of the petition is dismissed.' 'The petition is dismissed.' 'The debtor shall pay the costs of the petitioning creditor of the petition up to and including 31 October 1995; and the petitioning creditor shall pay the costs of the debtor of the petition...