B Pty Ltd and Decastro and Anor

This matter concerned orders made by McClelland DCJ in relation to financial matters between B Pty Ltd, as trustee for the Decastro Family Trust, and the husband and wife parties, Mr Decastro and Ms Decastro. The dispute involved the disbursement of funds from the husband's term deposit, the sale of businesses, and the satisfaction of various tax liabilities and other commitments.

The court was required to determine the appropriate distribution of funds from the husband's term deposit, including a specific sum to be paid to B Pty Ltd to meet minimum repayment obligations under Division 7A of the *Income Tax Assessment Act 1936* (Cth). Further issues included how B Pty Ltd should apply these funds, including payments to the Australian Taxation Office for various liabilities of B Pty Ltd and the Decastro Family Trust, and other business expenses. The court also needed to address the sale of two businesses, D Business and E Business, and the priority of payments from the sale proceeds, including outstanding loan accounts owed to B Pty Ltd. Finally, the court considered the husband's obligations to provide information for tax lodgements and imposed restrictions on his ability to conduct business on behalf of B Pty Ltd.

McClelland DCJ ordered that the husband forthwith disburse the balance of his Commonwealth Bank Term Deposit Account. A sum of $123,548.77 was to be paid to B Pty Ltd as trustee for the Decastro Family Trust to meet minimum repayment obligations under Division 7A. B Pty Ltd was then directed to use these funds to satisfy specific liabilities to the Australian Taxation Office for B Pty Ltd, the Decastro Family Trust, and a joint BAS, as well as meeting other commitments, with itemised accounts to be provided to the spouse parties. The husband was also ordered to take all necessary steps to ensure the sale of D Business and E Business at the earliest possible date, with the proceeds to be applied first to selling costs, then to discharge any unpaid loan account owed by the husband to B Pty Ltd, with the balance to be held in a joint interest-bearing account. The husband was further ordered to provide information to enable the lodgement of a Business Activity Statement and was restrained from making representations or conducting business on behalf of B Pty Ltd without the prior written consent of its Board.