Singleton v Commissioner of Taxation [2007] NSWSC 1327

Singleton v Commissioner of Taxation [2007] NSWSC 1327

The Commissioner proved that the payments the subject of the s 588FF orders were PAYG withholding payments and that Mr and Mrs Kosovich were directors at the relevant time, so s 588FGA imposed an indemnity liability quantified at $70,323.75. Although the respondents resided in New Zealand, service had been effected there and, because the claim would have fallen within Schedule 6 paras (a) and (f) if brought by originating process and all discretionary considerations favoured confirmation, service was confirmed under r 11.5 and judgment was entered for the Commissioner.

Jurisdiction
Australia
Judgment Date
19 November 2007
Procedural Posture
Corporations Application Under S 588 FGA of the Corporations Act 2001 (cth) for Judgment Against Directors / Amended Interlocutory Process; Judgment Ex Tempore
Outcome
Judgment for Commissioner of Taxation under s 588FGA.
Legal Topics
['director Indemnity Liability Under S 588 Fga' 'unfair Preference Recovery Under S 588 Ff' 'service Outside Australia' 'judgment in Absence of Defendants']
['corporations' 'taxation' 'civil Procedure'] ['director Indemnity Liability Under S 588 Fga' 'unfair Preference Recovery Under S 588 Ff' 'service Outside Australia' 'judgment in Absence of Defendants']

Case Brief

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Procedural Posture

Corporations Application Under S 588 FGA of the Corporations Act 2001 (cth) for Judgment Against Directors / Amended Interlocutory Process; Judgment Ex Tempore

Legal Issues

  1. 1 ['Whether the Commissioner established the ingredients of liability imposed on directors by s 588FGA(4).' 'Whether service in New Zealand of the amended interlocutory process and supporting documents should be confirmed under r 11.5 of the Uniform Civil Procedure Rules.' 'Whether the Court should proceed to hear and determine the application and enter judgment against the respondents in their absence.']

Ratio Decidendi

The Commissioner proved that the payments the subject of the s 588FF orders were PAYG withholding payments and that Mr and Mrs Kosovich were directors at the relevant time, so s 588FGA imposed an indemnity liability quantified at $70,323.75. Although the respondents resided in New Zealand, service had been effected there and, because the claim would have fallen within Schedule 6 paras (a) and (f) if brought by originating process and all discretionary considerations favoured confirmation, service was confirmed under r 11.5 and judgment was entered for the Commissioner.

Court Disposition

Judgment for Commissioner of Taxation under s 588FGA.

Orders

  • ['Service outside Australia of the amended interlocutory process and supporting documents was confirmed under r 11.5 of the Uniform Civil Procedure Rules.' 'Judgment was entered for the Commissioner against Debra and John Kosovich for $70,323.75 under s 588FGA.']