Deputy Commissioner of Taxation v Conley, John Patrick & Ors [1998] FCA 1321

Deputy Commissioner of Taxation v Conley, John Patrick & Ors [1998] FCA 1321

Section 218 of the Income Tax Assessment Act 1936 (Cth) does not apply to money due to a taxpayer denominated in foreign currency, as it lacks a mechanism for conversion and was not intended by Parliament to impose uncertainties or penal consequences on third parties regarding foreign currency debts. The term...

Source-derived case information.

Parties
Appellant: Deputy Commissioner of Taxation; First Respondent: John Patrick Conley; Second Respondent: Australian Aircraft Sales (NSW) Pty Ltd; Third Respondent: National Australia Bank Limited
Jurisdiction
Australia
Judgment Date
21 October 1998
Procedural Posture
Appeal / Judgment of Full Court
Outcome
appeal dismissed with costs
Legal Topics
Statutory Interpretation, Money in Tax Collection, Currency Conversion, S 218 Notices
Taxation Law Statutory Interpretation Money in Tax Collection Currency Conversion S 218 Notices

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Parties

Deputy Commissioner of Taxation

Appellant

John Patrick Conley

First Respondent

Australian Aircraft Sales (NSW) Pty Ltd

Second Respondent

National Australia Bank Limited

Third Respondent

Procedural Posture

Appeal / Judgment of Full Court

Legal Issues

  1. 1 Whether the term 'money' in section 218 of the Income Tax Assessment Act 1936 (Cth) includes money denominated in foreign currency
  2. 2 Whether section 218 provides an implied mechanism for conversion of foreign currency debts for tax collection
  3. 3 Whether the procedure under section 218 is distinguishable from garnishment proceedings

Ratio Decidendi

Section 218 of the Income Tax Assessment Act 1936 (Cth) does not apply to money due to a taxpayer denominated in foreign currency, as it lacks a mechanism for conversion and was not intended by Parliament to impose uncertainties or penal consequences on third parties regarding foreign currency debts. The term 'money' in s 218 refers only to Australian currency.

Court Disposition

appeal dismissed with costs

Orders

  • The appeal be dismissed with costs.