Chief Commissioner of Stamp Duties v Paliflex Pty Ltd

The Chief Commissioner of Stamp Duties sought to wind up Paliflex Pty Ltd on the basis of an unpaid tax debt. The company claimed that the statutory demand was invalidly served as it was sent to the company's registered office when the company had notified the Commissioner of a change of address. The Full Court of the Federal Court was asked to decide whether the Commissioner's failure to notify the company of the demand at the new address was a valid defence to the winding up proceedings and whether the court could exercise its discretion to grant leave to the company to challenge the debt. The Court held that the Commissioner was not obliged to notify the company of the demand at the new address and that the oral notification of the change of address did not estop the Commissioner from relying on the valid service at the registered office. The Court also held that the company's conduct was relevant to the genuineness of the dispute and that the dispute about the existence of the debt raised a constitutional issue. Finally, the Court held that the notices to the Attorneys-General under s.78B of the Judiciary Act 1903 (Cth) were not applicable in this case as the dispute was about a debt for State tax. The Court granted the company leave to challenge the debt at the hearing of the winding up summons. The Court ordered that the winding up proceedings be stayed until the company had an opportunity to challenge the validity of the demand and the existence of the debt.