Re Leslie, P. v. Ex parte Deputy Commissioner of Taxation [1994] FCA 790

Re Leslie, P. v. Ex parte Deputy Commissioner of Taxation [1994] FCA 790

The debtor remained indebted to the petitioner because s 221P(1) did not extinguish the employer's liability even if a trustee became liable, and in any event the debtor failed to establish that the whole of his property had vested in or passed under the control of the receivers. His interests in the Meurants Lane and Junee properties had not passed to the receivers and were not shown to be de minimis, while the evidence did not support the allegation that the Deed of Appointment or sale arrangements were a sham.

Jurisdiction
Australia
Judgment Date
31 October 1994
Procedural Posture
Bankruptcy Petition / Notice of Opposition to Petition; Reasons for Judgment After Hearing
Outcome
The ground relied on in the Notice of Opposition failed; the debtor was held to be indebted to the petitioner.
Legal Topics
['group Tax Deductions' 'income Tax Assessment Act 1936 S 221 P' 'receiver as Trustee' "control of Debtor Employer's Property" 'liability for Unpaid Group Tax' 'sham Transactions']
['bankruptcy' 'taxation' 'receivership'] ['group Tax Deductions' 'income Tax Assessment Act 1936 S 221 P' 'receiver as Trustee' "control of Debtor Employer's Property" 'liability for Unpaid Group Tax' 'sham Transactions']

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Procedural Posture

Bankruptcy Petition / Notice of Opposition to Petition; Reasons for Judgment After Hearing

Legal Issues

  1. 1 ["Whether the whole of the debtor employer's property vested in, or passed under the control of, the receivers for the purposes of s 221P(1) of the Income Tax Assessment Act 1936." "Whether any liability of the receivers under s 221P(1) extinguished the debtor employer's own liability for unpaid group tax." 'Whether the Deed of Appointment of receivers and the separate sale arrangements for the bus business and depot land were a sham or device to avoid payment of group tax.' "Whether the debtor's interests in the Meurants Lane and Junee properties could be ignored as having no commercial value or as de minimis."]

Ratio Decidendi

The debtor remained indebted to the petitioner because s 221P(1) did not extinguish the employer's liability even if a trustee became liable, and in any event the debtor failed to establish that the whole of his property had vested in or passed under the control of the receivers. His interests in the Meurants Lane and Junee properties had not passed to the receivers and were not shown to be de minimis, while the evidence did not support the allegation that the Deed of Appointment or sale arrangements were a sham.

Court Disposition

The ground relied on in the Notice of Opposition failed; the debtor was held to be indebted to the petitioner.

Orders

  • ['The petitioner should have its costs of the proceedings.' 'The parties were directed to bring in short minutes of proposed orders having regard to the reasons for decision.']