Re: Bowen, Howard, J.E. [1987] FCA 347

Re: Bowen, Howard, J.E. [1987] FCA 347

The bankrupt did not make out a case for discharge. Acting on professional advice did not compel discharge; at least $13,981 remained owing in respect of primary tax; the bankrupt did not establish that the amounts he had paid were the only feasible amounts he could have paid; and no effective condition could be imposed to deal satisfactorily and realistically with the primary tax, let alone the balance of tax owing.

Jurisdiction
Australia
Judgment Date
12 May 1987
Procedural Posture
Application for Discharge Under Section 150 of the Bankruptcy Act / Application Heard and Dismissed on 12 May 1987
Outcome
Application dismissed with costs to the objecting creditor.
Legal Topics
['discharge From Bankruptcy' 'objection by Creditor' 'income Tax Debt' 'penalty Tax' 'conditional Discharge' 'costs']
['bankruptcy' 'taxation'] ['discharge From Bankruptcy' 'objection by Creditor' 'income Tax Debt' 'penalty Tax' 'conditional Discharge' 'costs']

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Procedural Posture

Application for Discharge Under Section 150 of the Bankruptcy Act / Application Heard and Dismissed on 12 May 1987

Legal Issues

  1. 1 ['Whether the bankrupt should be discharged from bankruptcy under section 150 of the Bankruptcy Act.' "Whether the bankrupt's reliance on accountants' advice concerning tax minimisation schemes and the composition of the tax debt justified discharge." 'Whether discharge on conditions requiring specified payments would be appropriate.']

Ratio Decidendi

The bankrupt did not make out a case for discharge. Acting on professional advice did not compel discharge; at least $13,981 remained owing in respect of primary tax; the bankrupt did not establish that the amounts he had paid were the only feasible amounts he could have paid; and no effective condition could be imposed to deal satisfactorily and realistically with the primary tax, let alone the balance of tax owing.

Court Disposition

Application dismissed with costs to the objecting creditor.

Orders

  • ['The application for discharge from bankruptcy be dismissed.' 'The applicant pay the costs of the objecting creditor.']