Commissioner of Taxation v Regent Pacific Group Limited [2013] FCA 36

Commissioner of Taxation v Regent Pacific Group Limited [2013] FCA 36

It is appropriate to grant freezing orders and related interlocutory relief restraining the dealing with specified Australian shares given the substantial risk that, absent such orders, the applicant would be unable to satisfy a prospective tax judgment as the respondents' assets are liquid, held offshore, with no demonstrated tax presence or enforceability of Australian revenue debts in the foreign jurisdictions. The requirements of the Federal Court Rules 2011 are satisfied. Orders should also be made for leave for service out of jurisdiction and substituted service, to ensure effective and timely notice due to the severity of the orders sought.

Jurisdiction
Australia
Judgment Date
23 January 2013
Procedural Posture
Interlocutory Application / Ex Parte Application for Freezing Order and Associated Interlocutory Orders
Outcome
Interlocutory/freezing orders granted as sought by the Commissioner on an ex parte basis, with leave for service out of jurisdiction and for substituted service. Matter to return for directions hearing.
Legal Topics
['freezing Order' 'service Out of Jurisdiction' 'interlocutory Injunction' 'tax Debt' 'asset Preservation']
['taxation Law' 'civil Procedure'] ['freezing Order' 'service Out of Jurisdiction' 'interlocutory Injunction' 'tax Debt' 'asset Preservation']

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Procedural Posture

Interlocutory Application / Ex Parte Application for Freezing Order and Associated Interlocutory Orders

Legal Issues

  1. 1 ['Whether a freezing order should be granted to preserve assets for satisfaction of a prospective tax judgment' 'Whether substituted service and service out of jurisdiction is justified under the Federal Court Rules 2011']

Ratio Decidendi

It is appropriate to grant freezing orders and related interlocutory relief restraining the dealing with specified Australian shares given the substantial risk that, absent such orders, the applicant would be unable to satisfy a prospective tax judgment as the respondents' assets are liquid, held offshore, with no demonstrated tax presence or enforceability of Australian revenue debts in the foreign jurisdictions. The requirements of the Federal Court Rules 2011 are satisfied. Orders should also be made for leave for service out of jurisdiction and substituted service, to ensure effective and timely notice due to the severity of the orders sought.

Court Disposition

Interlocutory/freezing orders granted as sought by the Commissioner on an ex parte basis, with leave for service out of jurisdiction and for substituted service. Matter to return for directions hearing.

Orders

  • ['Freezing order against the First Respondent up to AUD$12,783,976.50 until 5 pm on 31 January 2013' 'Second Respondent restrained from dealing with specified shares in Venturex Resources Limited on behalf of the First Respondent until 31 January 2013 or further order' 'Third Respondent restrained from dealing with...