THE COMMISSIONER OF INLAND REVENUE V MANAGED FASHIONS LTD HC AK CIV-2009-404-2640

THE COMMISSIONER OF INLAND REVENUE V MANAGED FASHIONS LTD HC AK CIV-2009-404-2640

The stay was dismissed because the undisputed core debt of $61,072 exceeded the threshold and there was no evidence the company could pay it; leave to file a statement of defence out of time was granted to permit the parties to file further evidence (including the Commissioner's decision under s398(5)) so the liquidation proceeding can be adjudicated on full evidence rather than decided prematurely on limited material, with specific filing directions imposed.

Citation
openlaw-2fe81f0d_d269_4c5c_a33d_d49fe657170e.pdf
Parties
Plaintiff/respondent: Commissioner of Inland Revenue; Defendant/applicant: Managed Fashions Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
1 October 2009
Procedural Posture
Liquidation Proceeding Under Companies Act 1993 (application to Place Company in Liquidation Following Statutory Demand) / Interlocutory Applications: Stay Pending Judicial Review and Application for Leave to File Statement of Defence Out of Time
Outcome
Application for stay dismissed; leave to file statement of defence out of time granted.
Legal Topics
Statutory Demand, Liquidation, Income Tax Act S398(5) Assessments, Stay Pending Judicial Review, Leave to File Defence Out of Time
Tax Law Insolvency Law Company Law Administrative Law Statutory Demand Liquidation Income Tax Act S398(5) Assessments Stay Pending Judicial Review +1 more

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Parties

Commissioner of Inland Revenue

Plaintiff/respondent

Managed Fashions Limited

Defendant/applicant

Procedural Posture

Liquidation Proceeding Under Companies Act 1993 (application to Place Company in Liquidation Following Statutory Demand) / Interlocutory Applications: Stay Pending Judicial Review and Application for Leave to File Statement of Defence Out of Time

Legal Issues

  1. 1 Whether the liquidation proceeding should be stayed pending resolution of a judicial review
  2. 2 Whether leave should be granted to file a statement of defence out of time
  3. 3 Whether the Commissioner made a decision under s398(5) of the Income Tax Act 1976

Ratio Decidendi

The stay was dismissed because the undisputed core debt of $61,072 exceeded the threshold and there was no evidence the company could pay it; leave to file a statement of defence out of time was granted to permit the parties to file further evidence (including the Commissioner's decision under s398(5)) so the liquidation proceeding can be adjudicated on full evidence rather than decided prematurely on limited material, with specific filing directions imposed.

Court Disposition

Application for stay dismissed; leave to file statement of defence out of time granted.

Orders

  • Statement of defence to be filed and served within seven days (by 8 October 2009).
  • Commissioner to file and serve any further evidence by 22 October 2009.